- NY Credits : 8.0
- TX Credits : 8.0
Preparing Tax Basis Financial Statements
The objective of this course is to discuss the general rules and applications used in the preparation of and reporting on tax-basis financial statements and other bases of accounting found within the special purpose frameworks (also referred to as other comprehensive bases of accounting). Topics include and overview of the types of special purpose frameworks, advantages and disadvantages of using tax basis financial statements, tax basis accrual versus cash basis, reviewing the key differences between GAAP and tax basis revenue and expenses, and other differences, tax basis disclosures, reporting options for tax basis financial statements, unusual reporting and presentation issues related to tax basis financial statements, an overview of other types of special purpose frameworks including pure cash basis, modified cash basis, regulatory basis, contractual basis, and the other basis of accounting, and more.
Upon successful completion of this course, the user should be able to:
recognize some of the M-1 differences that do not apply to tax-basis financial statements;
recognize how to account for an accounting change in tax-basis financial statements;
recall how to account for and present nontaxable and nondeductible items in tax-basis financial statements;
identify the disclosure requirements for tax-basis financial statements; and
recognize the appropriate and inappropriate financial statement titles for tax-basis financial statements.