Preparing & Reporting on Personal Financial Statements

Author: Robert K Minniti

It is common for our small business owner, and high net worth clients to request that their CPA prepare a personal financial statement for them. This is often a requirement from lenders. CPAs need to understand that lenders will claim they relied on these statements when providing loans to the clients, and if the clients default, they will attempt to claim damages from the CPA who prepared the statements. We will discuss the risks involved in preparing personal financial statements and how you can reduce your risk exposure should you decide to prepare them.

Publication Date: March 2024

Topics Covered

• Personal Financial Statements
• Accounting Standards
• Estimated Value
• Comfort Letters
• Potential Issues

Learning Objectives

• Recognize how to prepare personal financial statements
• Determine the proper disclosures for personal financial statements
• Describe the concept of "estimated current value"
• Identify the reporting requirements related to personal financial statements
• Identify the approach the Guideline Public Company Method falls under

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
None

Advance Preparation
None