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Wiley Practitioner's Guide to GAAS 2018, 2nd Edition
book

Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

by Joanne M. Flood
April 2018
Beginner to intermediate content levelBeginner to intermediate
880 pages
28h 54m
English
Wiley
Content preview from Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AR-C 120 Compilation of Pro Forma Financial Information

Original Pronouncements

Sources Statement on Standards for Accounting and Review Services (SSARSs) 22.

Applicability

AR-C 120 is applicable when an accountant is engaged to compile or issue a compilation report on pro forma financial information.

Objectives of AR-C Section 120

It is important to note that the requirements in AR-C 60 apply to all SSARS engagements, including compilation engagements. Readers should apply the requirements in the chapter on Section 60 to compilation engagements in addition to the guidance in this chapter.

The objective of the accountant in a compilation of pro forma financial information is to apply accounting and financial reporting expertise to assist management in the presentation of pro forma financial information and report in accordance with this section without undertaking to obtain or provide any assurance on the pro forma financial information. (AR-C 120.03)

Entities issue pro forma information to show what the significant effects on historical financial information might have been had a consummated or proposed transaction or event occurred at an earlier date—for example, a business combination or the disposal of a portion of the business.

Requirements

General Guidance

Independence

For a pro forma engagement, accountants must determine whether they are independent of the entity. (AR-C 120.06)

Acceptance and Continuance of Client Relationships

Accountants must comply ...

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Publisher Resources

ISBN: 9781119396482Purchase book