Other F/S Presentations

Question 1

OCBOA

Answer 1

other comprehensive bases of accounting

• cash basis/modified cash basis
• tax basis
• definite set of criteria w/ substantial support
• regulatory basis

Question 2

OCBOA presentation guidelines

Answer 2

• F/S titles should differentiate OCBOA F/S from accrual basis F/S
• required F/S are equivalents of accrual basis B/S and I/S
• F/S should explain changes in equity accounts
• CF/S not required

Question 3

OCBOA disclosures

Answer 3

similar to disclosures in GAAP F/S

Question 4

cash basis

Answer 4

statement of cash/equity
- cash is only asset, no liabilities recorded, equity equal to cash

statement of cash receipts/disbursements

• revenues
• debt/equity proceeds
• proceeds from asset sales
• expenses
• debt repayments
• dividend payments
• purchase of assets

Question 5

modified cash basis

Answer 5

hybrid b/w cash and accrual basis; common modifications:

• capitalize/depreciate fixed assets
• accrue income taxes
• record liabilities for LT and ST borrowings and related interest expense
• capitalize inventory
• report investments at FV and recognize unrealized gains/losses

Question 6

income tax basis

Answer 6

prepared based on methods/principles used to prepare income tax return

nontaxable revenues/expenses reported as:

• separate line items
• additions/deductions to NI
• disclosure in a note

Question 7

personal F/S

Answer 7

F/S of individuals/groups of related individuals prepared to organize and plan financial affairs

• statement of financial condition
• statement of changes in net worth

Question 8

statement of financial condition (PFS)

Answer 8

B/S at FV recognized on accrual basis

ASSETS

• PV of projected cash receipts acceptable as current value of monetary assets
• life insurance loans payable netted against cash surrender value of policy
• business interest that constitutes a large part of individual’s total assets presented as single amount at estimated current value separate from other investments
• vested pension plan benefits reported at FV

LIABILITIES

• loans may have PV less cost
• deferred tax liability is reported for estimated taxes due as if all assets/liabilities sold/paid at FV

NET WORTH
assets - liabilities

presentation is made in order of liquidity and maturity, no current/noncurrent classifications

Question 9

statement of changes in net worth (PFS)

Answer 9

shows sources of increases/decreases in net worth

Question 10

PFS disclosures

Answer 10

individuals covered by the statements
A/L at current est. values
methods used in determining current values
description of intangibles
face amount of life insurance
nature of jointly owned assets
tax information
maturities, interest rates