Compilations and Reviews of Financial Statements (Portfolio 5450)

Description

Bloomberg Tax Portfolio 5450, Compilations and Reviews of Financial Statements, (Accounting Policy and Practice Series), examines in detail the AICPA’s Statement on Standards for Accounting and Review Services (SSARS), which set the requirements an accountant must follow when performing a compilation or a review of financial statements. This portfolio describes the objectives, limitations, and elements of compilation and review engagements.

The AICPA issued SSARS No. 21, Statements on Standards for Accounting and Review Services: Clarification and Recodification, October 2014, to clarify and revise standards for compilations, reviews, and engagements to prepare financial statements. SSARS No.21 includes significant revisions that affect the standards for accountants in public practice who prepare financial statements for their clients. SSARS No. 21 will supersede all existing Accounting and Review (AR) Sections except AR Section 120, Compilation of Pro Forma Financial Information.

The AICPA issued SSARS No. 22, Compilation of Pro Forma Financial Information, Sept. 2016, to clarify the standards for compilations on pro forma financial information. SSARS No. 22 supersedes AR Section 120, Compilation of Pro Forma Financial Information.

The AICPA issued SSARS No. 23, Omnibus Statement on Standards for Accounting and Review Services in October, 2016 and introduces a number of amendments to expand on, revise and clarify the standards for accounting and review services.

This Portfolio contains sections for compilations and reviews of financial statements for SSARS No. 21, SSARS No. 22, and SSARS No. 23.

This Portfolio may be cited as Bloomberg Tax Portfolio 5450, Roque, Compilations and Reviews of Financial Statements (Accounting Policy and Practice Series).

Table of Contents

I. Performing and Reporting on Compilation and Review of Financial Statements
II. Compilation of Financial Statements (pre SSARS No. 21)
III. Preparation Versus Compilation of Financial Statements (post SSARS No. 23)
IV. Review of Financial Statements (pre SSARS No. 21)
V. Review of Financial Statements (post SSARS No. 23)
VI. Reporting on Comparative Financial Statements
VII. Compilation of Pro Forma Financial Information (SSARS No. 22)