Special Purpose Framework

Question 1

How should estimated income taxes on the excess of estimated current value of assets over their tax bases be reported

Answer 1

As a separate line item between liabilities and net worth sections of the personal financial statement.

Question 2

Is the accrual accounting method or fair value measurement used for personal financial statements

Answer 2

They are both used.

Question 3

Personal Financial Statements information reported

Answer 3

Assets at current values, liabilities at current amounts and net worth = assets - liabilities

Question 4

Private Company Council Goodwill Amortization

Answer 4

Amortize goodwill over a period to not exceed 10 years

Question 5

Purpose of the Private Company Council

Answer 5

To assist the FASB in identifying whether and when a private company accounting standard should be developed

Question 6

Liquidation basis of accounting

Answer 6

is focused on informaing the financial statement users that liquidation is imminent