Special Purpose Framework

Question 1

Special Purpose Framework or Other Comprehensive Basis of Accounting (OCBA)

Answer 1

Not based on GAAP and is used by no-public business entities to avoid the time-consuming and costly application of GAAP.

Question 2

Categories of Special Purpose Framework or OCBOA:

Answer 2

Cash Basis
Modified Cash Basis
Income Tax Basis
Regulatory Basis
Other Basis with Substantial Support

Question 3

Cash Basis Financial Statements

Answer 3

Based solely on cash receipts and cash disbursements. Revenue is only recognized when cash is received and expenses are recognized when cash is disbursed.

On the B/S only Cash and Equity; No assets or liabilities shown.

Question 4

Modified Cash Basis Financial Statements

Answer 4

Combination of Cash Basis and Accrual Basis.