This presentation is about the “other comprehensive basis of accounting” (OCBOA) for accounting engagements. The session includes the following basis of accounting for accrual, tax, cash, liquidation, and any related updates for these engagements. Further, the AICPA’s new OCBOA, Financial Reporting Framework for Small and Medium Sized Entities (FRF for SMEs) will be compared to the tax basis of accounting and GAAP. The participants learn about new FASB pronouncements that may impact OCBOA and the impact of International Financial Reporting Standards (IFRSs) on OCBOA.
Publication Date: November 2021
Designed For
CPAs with an interest in private company accounting and auditing issues involving OCBOA, including those in public practice, management, and accounting; professional employees in industry; officers, board members; and professionals with an interest in clients, friends, or employers.
Topics Covered
- What is "Basis 0f Accounting"
- Authoritative guidance for financial statements prepared under a special purpose framework
- Some common questions
- Cash Basis of Accounting
- Two Step Cash Basis
- Modified Cash Basis
- Tax Basis of Accounting
- Cash or Tax???
- Decisions, decisions
- Cash Basis, Modified Cash Basis, or Tax Basis
- Presentation/Disclosure Issues in Financial Statements Prepared When Applying the Cash or Tax”Basis of Accounting
- Terminology for Cash” and Tax”Basis Financial Statements
- Consolidations
- Changes, changes
- ...and finally, how many OCBOAs?
Learning Objectives
- Describe the "basis of accounting"
- Recognize and apply the financial reporting formats
- Identify how to Audit, Review, Compilation, & Preparation Engagements using OCBOA
- Recognize disclosures and documentation with OCBOA
- Identify a basis of accounting that the entity uses to file its tax return for the period covered by the financial statements
- Differentiate which AU-C requires auditors to determine the acceptability of the financial reporting framework
- Recognize conditions that may indicate that financial statements prepared when applying the cash” or tax”basis of accounting is appropriate
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
Basic knowledge of OCBOA.
Advance Preparation
None
Instructor
Pat Patterson
Cecil Patterson, (Pat), CPA, MBA, is an award-winning, nationally recognized author, speaker, and discussion leader for continuing education courses and numerous state societies. He has experience at the local and national CPA-firm level and as an adjunct university professor.
Pat holds an MBA from the University of North Florida and is a CPA and owner of the firm of Cecil Patterson, CPA. His firm provides, accounting, tax preparation and tax planning services, wealth management services, and consulting for businesses and other professional firms.
Pat has served on the AICPA Council, the FICPA Council, and the FICPA Educational Foundation Board of Trustees.