Compilation Reports on Financial Statements Included in Certain Prescribed Forms
1. The requirements of SSARS 1 and SSARS 2 are applicable when the unaudited financial statements of a nonpublic entity are included in a prescribed form. This statement amends SSARS 1 and SSARS 2 to provide for an alternative form of standard compilation report when the prescribed form or related instructions call for departure from generally accepted accounting principles by specifying a meas-urement principle not in conformity with generally accepted account-ing principles or by failing to request the disclosures required by generally accepted accounting principles.1 This statement also pro-vides additional guidance applicable to reports on financial state-ments included in a prescribed form.2
2. For purposes of this statement, a prescribed form is any standard preprinted form designed or adopted by the body to which it is to be submitted, for example, forms used by industry trade associations, credit agencies, banks, and governmental and regulatory bodies other than those concerned with the sale or trading of securities.
1. For purposes of this statement, reference to generally accepted accounting principles includes, where applicable, a comprehensive basis of accounting other than generally accepted accounting principles as defined in SAS 14, paragraph 4. Disclosure of the basis of accounting should be made when a comprehensive basis of accounting other than generally accepted accounting principles is used.
2. This statement amends SSARS 1 in four places. The following sentences are added to the end of paragraph 18 of SSARS 1:
Also, an accountant may be asked to compile financial statements included in a prescribed form that calls for departure from generally accepted accounting principles. SSARS 3 provides additional guidance, including an alternative form of standard report, applicable to such compilation engagements.
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American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N.Y. 10036 1234567 890ARS8987654321
Statement on Standards for Accounting and Review Services
Issued by the Accounting and Review Services Committee
American Institute of Certified Public Accountants