Section 1: 30–40%1E

Special Purpose Frameworks

Exam insight

Special purpose frameworks (cash basis, tax basis, regulatory basis) get tested by asking what differs from GAAP and why that's acceptable. One easy mistake is assuming compiled statements need no disclosures; you still have to disclose which framework was used. And some special purpose framework reports are restricted-use, 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

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

The Framework BasisSpecial purpose frameworks are honest about not being GAAP: different titles, a described basis, and full audits are still possible.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.