ISSUES PAPER 2/26/79 on
PERSONAL FINANCIAL STATEMENTS
1. Personal financial statements are prepared for individuals who may wish to use them as a formal means of organizing their financial affairs in general or for specific purposes, such as income tax planning, retirement planning, or gift and estate planning. Personal financial statements may be used by others in determining whether to extend credit or for other reasons. Their use in considering the financial affairs of candidates for public office and public officials has been increasing due to the public's desire for open government. Personal financial statements may be prepared for an individual, a husband and a wife, or a larger family group.
2. The users of personal financial statements need to know information about the assets currently owned by the reporting entity and the reporting entity's liabilities and how they are collateralized. In addition, users may require information about the reporting entity's sources and nature of income and expendi-tures and changes in assets and liabilities,
3. Guidance for the preparation of personal financial statements is currently given in the AICPA Industry Audit Guide (guide), Audits of Personal Financial Statements, issued in 1968. The basic personal financial statement recommended by the guide is a