Where FAS 109 provided for the financial statement
recognition of tax attributes, FIN 48 provides specific guidance addressing accounting for the uncertainty of tax positions.
The publication provides illustrative financial statements
and related disclosures for non-governmental not-for-profit organizations, other than healthcare providers.
SSARS 13 expands SSARS to apply when an accountant is engaged to compile or issues a compilation report on one or more specified elements, accounts, or items of a financial statement
In question 1, the financial statement
type is the first listed of the following financial statements
: (a) Securities and Exchange Commission (SEC) Form 10-K, Annual (or Transition) Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, financial statements
; (b) other certified audited financial statements
prepared in conformity with GAAP; or (c) other financial statements
(or books and records used in lieu of financial statements
Related financial statement
decisions that must be made involve deciding upon the appropriate entries to the tax liability accounts and generally follow the tax return treatment of the transaction.
SAS 82, titled Consideration of Fraud in a Financial Statement
Audit that is effective this year, requires that auditors "prepare a plan and perform an audit to obtain reasonable assurances about whether the financial statements
are free of material misstatement; whether caused by error or fraud.
a plastic injection mold, automotive parts and design-services company, its primary external financial statement
users are bankers and leasing companies.
In those cases where a different, but acceptable, accounting policy would have had a material effect on the financial statements
, it would be useful to financial statement
readers to know that alternative accounting policies would have resulted in material differences, the reason for and an estimate of the result of using the alternative policy.
If there is no applicable financial statement
, or if such statement does not show specific earnings or the tax liability amount, then, according to the AJCA Conference Report, the $500 million limit applies.
The GASB 34 edition of the guide will help you to audit those financial statements
Whereas the specific issues will vary by company and tax jurisdiction, the effect on the financial statement
process is the same: In-house tax advisers make an assessment -- an informed, but subjective judgment -- of the nature of the issues and the scope and degree of potential or actual controversies with applicable tax authorities about the proper interpretation of the law.
1, Compilation and Review of Financial Statements