Accounting and Financial Reporting Guidelines For Cash- and Tax-Basis Financial Statements

Because of the complexities of accounting principles generally accepted in the United States of America (GAAP), many smaller entities have determined that financial statements prepared by applying the cash- or tax-basis of accounting more appropriately suit their needs. But unlike GAAP, little authoritative guidance is available with respect to the preparation of financial statements when applying the cash- or tax-basis of accounting. The AICPA Practice Aid, Accounting and Financial Reporting Guidelines for Cash- and Tax-Basis Financial Statements, which recently has been updated, is intended to provide preparers with the guidelines and best practices that promote consistency and that resolve the often difficult questions regarding the preparation of cash- and tax-basis financial statements. While nonauthoritative, this practice aid is the best source for such guidance. All content has been reviewed by subject-matter experts.