F2: M7 Special Purpose Framework

Question 1

Definition

OCBOA (Other Comprehensive bases of accounting)

Answer 1

• Non-GAAP presentations that have widespread understanding and support

Question 2

OCBOA Presentations include

Answer 2

• The cash basis and modified cash basis and accounting.
• The tax basis of accounting
• A definitie set of criteria have substantial support that is applied to all material financial statement elements, such as price-level adjusted financial statements.
• A regulatroy basis of accounting.

Question 3

General Presention Guidelines

Answer 3

• F/S titles should differentiate the OCBOA f/s from accrual basis f/s.
• The required f/s are the equivalents of accrual basis balance sheet and income statement.
• F/S should explain changes in equity accounts.
• A statement of cash flows is not required.
• Disclosures should be similar to GAAP in F/S.

Question 4

In f/s prepared on the income-tax basis, the nondeductible portion of expenses ( such as meals and entertainment) should be

Answer 4

included in the expense category in the determination income.

Question 5

Statement of Financial position is an accrual basis financial statement therefore OCBOA

Answer 5

cannot use accral basis financial statement titles.