Wiley GAAP: Financial Statement Disclosure Manual

13ASC 274 PERSONAL FINANCIAL STATEMENTS

1. Authoritative Literature
   1. Subtopics
   2. Scope
2. Disclosure and Presentation Requirements
   1. Presentation
   2. Disclosures
3. Presentation and Disclosure Example
   1. Example 13.1: Hypothetical Set of Personal Financial Statements

AUTHORITATIVE LITERATURE

Subtopics

ASC 274, Personal Financial Statements, consists of one Subtopic:

• ASC 274‐10, Overall, which addresses the preparation and presentation of financial statements of individuals or groups of related individuals (i.e., families).

Scope

ASC 274 applies to individuals and groups of related individuals (ASC 274‐10‐15‐2)

DISCLOSURE AND PRESENTATION REQUIREMENTS

Presentation

Personal financial statements can be prepared for an individual, jointly for a husband and wife, or collectively for a family.

Personal financial statements consist of:

1. Statement of financial condition—The only required financial statement, the statement of financial condition, presents the estimated current values of assets and the estimated current amounts of liabilities. A liability is recognized for estimated income taxes on the difference between the asset and liability amounts set forth in the statement of financial condition and their respective income tax bases. Naturally, the residual amount after deducting the liabilities (including the estimated income tax liability) from the assets is presented as net worth at that date.
2. Statement of changes in net worth—An optional statement that presents the primary sources ...