CPAs and finance professionals are often the first stop for most individuals for tax and financial planning advice. Your client's financial position may be requested by estate planners, creditors, and other advisors. Preparing personal financial statements for your clients, friends, or family can be a great opportunity to grow your practice or provide needed assistance. This course will show you the professional standards and best practices for preparing personal financial statements.
Publication Date: March 2023
Designed For
CPAs and finance professionals who work with clients, friends, or family on the development and analysis of personal financial statements and other aspects of personal financial planning.
Topics Covered
- Personal Financial Statements and new preparation, compilation, and review standards for 2021 and later: SSARS 21, 22, 23, 24, 25 and 26
- What is GAAP to be used in Personal Financial Statements
- Other bases of accounting used in Personal Financial Statements
- Personal Financial Statements and new issues in Preparation, Compilation, and Review engagement letters and review representation letters specified in SSARS
- Disclosures required pertaining to Personal Financial Statements
- An advanced look at documentation standards for changes required by new preparation, compilation, and review standards in Personal Financial Statements from SSARS
- Further updates that impact on preparation, compilation, and review engagements that include new Quality Management Standards (SQMS No. 1) and its requirements
- Ethics Section 1.295 (formerly Ethics Interpretation 101-3) will be explored for revisions and updates in attest/nonattest applications specifically dealing with personal financial statements
- Other matters deemed appropriate and timely such as: investments, life insurance, Social Security, estimated income taxes, carryforwards, commitments, and internal controls
- Any other matters deemed appropriate and timely
Learning Objectives
- Describe the basics of preparing personal financial statements
- Identify and apply other new GAAP releases that may affect Preparation, Compilation and Review engagements for personal financial statements
- Recognize the updates on SSARS 21 thru SSARS 25, and any new preparation, compilation, and review standards for 2021, and future years
- Describe selected revised professional compilation and review standards and other standards that still apply from earlier years
- Identify the principal authoritative literature dealing with preparing personal financial statements
- Recognize how to differentiate statements with respect to internal controls
- Recognize types of engagements when an accountant is required to obtain a written representation letter from management
- Recognize how to differentiate sections of ASC 274 prescribing the disclosure requirements with respect to personal financial statements
- Identify proper statements with respect to personal financial statements
- Recognize AR-C sections' requirements with respect to preparation of financial statements
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
A basic understanding of Personal Financial Statements.
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.