Reporting Options for Small Businesses - Tom Eiseman

1. A Global Reach with a Local Perspective
www.decosimo.com
Reporting Options for Small
Businesses
Tom Eiseman, CPA | Principal in Charge of Assurance

2.  Financial statements prepared in accordance with
accounting principles generally accepted in the U.S.
 Financial statements prepared in accordance with
U.S. GAAP except for the omission of substantially
all disclosures and/or the cash flow statement
 Financial statements prepared in accordance with
U.S. GAAP except for certain departures
GAAP financial statements

3.  Financial statements prepared in accordance with
International Financial Reporting Standards
 Financial statements prepared in accordance with
IFRS for SMEs
IFRS

4.  Cash basis. A basis of accounting that the entity
uses to record cash receipts and disbursements and
modifications of the cash basis having substantial
support (for example, recording depreciation on
fixed assets).
 Tax basis. A basis of accounting that the entity uses
to file its tax return for the period covered by the
financial statements.
Special purpose financial statements

5.  Regulatory basis. A basis of accounting that the
entity uses to comply with the requirements or
financial reporting provisions of a regulatory agency
to whose jurisdiction the entity is subject.
 Contractual basis. A basis of accounting that the
entity uses to comply with an agreement between
the entity and one or more third parties.
Special purpose financial statements

6.  Other basis. A basis of accounting that uses a
definite set of logical, reasonable criteria that is
applied to all material items appearing in financial
statements.
 This includes the Financial Reporting Framework for
Small- and Medium-Sized Entities
Special purpose financial statements

7.  Is the fair value basis a special purpose framework?
 Is the liquidation basis a special purpose
framework?
Special purpose financial statements

8.  Determining the acceptability of the financial
reporting framework requires considering
 The purpose for which the financial statements are
prepared
 The intended users
Special purpose financial statements

9.  Presentation of a single financial statement using
any acceptable framework or special purpose
framework.
 Relevant disclosures are required.
 Balance sheet only presentation is most common.
Single Financial Statements

10.  Elements, accounts or items of a financial statement
commonly reported include:
 Single elements such as accounts receivable or
inventory
 A schedule of accounts such as expenses related to a
leased property
 Relevant disclosures are required.
Elements, accounts or items of a F/S

11.  Audit
 Review
 Compilation
 Examination
 Agreed-upon procedures
Reporting by accountants

12. Tom Eiseman, CPA
Principal In Charge of Assurance
tomeiseman@decosimo.com
423-756-7100
Contact the Subject Matter Expert
Tom has experience with clients in a variety of industries, including manufacturing,
distribution, securities brokers and dealers, investment entities, oil and gas exploration,
restaurants, broadcasting and not-for-profit entities. He has been involved with initial public
offerings and periodic SEC filings for over 25 years. His experience includes clients with
extensive international operations. He is licensed to practice in Tennessee, Georgia and
Massachusetts. Tom is a member of the American Institute of Certified Public Accountants
(AICPA) and the Tennessee Society of Certified Public Accountants (TSCPA). He currently
is a member of the TSCPA’s Peer Review Committee.

13. Questions?