Section 1: 30–40%1E
Special Purpose Frameworks
Special purpose frameworks (cash basis, tax basis, regulatory basis) are tested by asking you to identify what's different from GAAP and why that's acceptable. The AICPA's trap: candidates think 'compiled statements' means no disclosures required — but you must still disclose which framework was used. Also know that special purpose framework reports have restricted use — they're not for general distribution.
What AICPA Wants You to Know
- 1Define special purpose frameworks and list the four main types
- 2Distinguish GAAP from non-GAAP financial statements and when each is appropriate
- 3Describe how auditors report on special purpose framework financial statements
- 4Identify disclosure requirements unique to special purpose frameworks