Perspective and Issues

AICPA Statement of Position (SOP) 82‐1, Personal Financial Statements, addresses the preparation and presentation of personal financial statements, or, more specifically, financial statements of individuals or groups of related individuals (i.e., families). Personal financial statements are generally prepared to organize and plan an individual's financial affairs on a more formal basis. Specific purposes that might require the preparation of personal financial statements include the obtaining of credit, income tax planning, retirement planning, gift and estate planning, or the public disclosure of financial affairs. Third‐party recipients of personal financial statements use them in deciding whether to grant credit, in evaluating the financial condition of individuals, in assessing the financial affairs of public officials and candidates for public office, and for other purposes. Estimated current values of assets and liabilities are almost always specified for use in the preparation of personal financial statements as this information is more relevant to users than historical cost.

Table . 24-1: Sources of GAAP
SOP
82‐1

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