Are GAAP statements worth it?

Article Abstract:

Small private companies that prepare financial statements using generally accepted accounting principles (GAAP) face both costs and benefits. Audit fees increase and the cost of borrowed funds decrease when using GAAP statements. Smaller businesses do not have the same financial reporting requirements and costs that larger businesses do. Ownership interests, management, and access to external parties are all areas in which the businesses differ. One way to address the small business problem is to look at financial reporting differences as choices on a continuum. Each choice on the continuum could indicate a level of reporting. Each level could be more advanced and more complete than the one before it.

Analysis, Management, Private companies

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The new statement of cash flows: FAS 95 affects all businesses and financial institutions. (Financial Accounting Standard number 95)

Article Abstract:

Financial Accounting Standard (FAS) 95 on cash flows was issued to resolve arguments over the definition of funds and purposes, and the presentation of funds flow statements. FAS 95 also improves the utility and reliability of reported financial data. Small businesses must offer a statement of cash flows when presenting full financial statement sets. Cash receipts under FAS 95 are classified in one of three activity categories: operating, investing, and financing. The reporting of per-share cash flow is not allowed in the financial statements.

Laws, regulations and rules, Cash flow, Financial Accounting Standards Board

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