With this Guide, you can be certain you are complying with applicable standards and quality control requirements. The Guide considers all the latest FASB literature and tax law changes and provides practical guidance on what the literature and laws mean for OCBOA financial statements. It not only explains the unique measurement and disclosure requirements of each basis of accounting, but the presentation and reporting options as well. It comes with both a cash basis and a tax basis disclosure checklist, example financial statements that cover a variety of entity types (nonprofit, professionals, estates, etc.), note disclosures, and tailored practice aids you can use to efficiently compile or review OCBOA financial statements.

Important update features for the 2012 edition include:

• Clarified Auditing Standards. In October 2011, the AICPA issued SAS No. 122, Clarification and Recodification, which supersedes all existing standards and will be effective for audits of financial statements for periods ending on or after December 15, 2012. The section of SAS No. 122 that provides the guidance for OCBOAs fundamentally changes the terminology of OCBOAs, and adds new requirements over accepting and reporting on an audit engagement when the reporting framework is a special purpose framework (or OCBOA). The Guide has been updated for the clarified standards, which impact many other aspects of an audit engagement beyond just the reporting framework. The current edition of the Guide also contains illustrative audit reports under both the existing and the clarified standards.
• Recently Issued Accounting and Compilation and Review Pronouncements. The Guide has been updated for all recently issued relevant accounting and compilation and review pronouncements, including two SSARS interpretations, two SSARS technical practice aids, and ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment. We’ve also updated the status of ARSC projects that are currently in process, including ARSC’s Clarity Project which would change compilations from being submission driven to being engagement driven.
• Recently Enacted Tax Legislation. We updated discussions of tax basis financial statements to include information regarding the temporary regulations for tangible property issued by the IRS in December 2011 and pertinent 2012 provisions of the Small Business Jobs Act of 2010 so that you can help your clients prepare their tax basis financial statements accurately and efficiently.
• Updated Disclosure Checklists. We have updated both the cash basis and tax basis disclosure checklists for changes in requirements of the authoritative standards through August 2012 to help ensure that your client’s financial statements are accurate and complete.