| Third Week in January Place Visited, | Perform ances, Newark
Preparation of Financial Statements
, covers a new type of service regarding financial statement
When an auditor finds a significant deficiency or material weakness, it can result in a stressful conversation with management--especially when long-standing clients have had clean opinions on previous financial statement
audits (see "What We're Up Against," below).
Indeed, because the asset recognition model underlying the FASB's proposed interpretation is fundamentally flawed, the exposure draft would neither represent an improvement over current accounting principles nor produce greater consistency and comparability of financial statements
. Under the exposure draft, tax benefits would not be recognized unless they are "probable" of being realized.
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
M eliminates (1) all dividend income from DS1-DS100 and FS1-FS50 in financial statement
consolidation entries and (2) the minority interest ownership of DS1-DS100 in financial statement
Because of a heavy workload, John's accounting firm provided him with minimal guidance--especially the risks involved in auditing and reviewing the financial statements
of a large corporation with significant accounts receivable.
The argument that the information is equally useful regardless of how it is presented could be applied to any financial statement
element, but the usefulness and integrity of financial statements
are impaired by each omission of an element that qualifies for recognition."
If a co-op or condo does not comply with the new requirement, and does not conduct a study, the accountant should include a footnote to this effect in the property's audited financial statement
. It is then necessary to indicate the coop or condo's intention to utilize available cash, borrow funds, increase maintenance, or levy special assessments to fund repairs or replacements, or the association's intention to delay repairs and replacements until funds are available.
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.
For PME Cos., a plastic injection mold, automotive parts and design-services company, its primary external financial statement
users are bankers and leasing companies.
The publication provides illustrative financial statements
and related disclosures for non-governmental not-for-profit organizations, other than healthcare providers.