Reporting on Personal Financial Statements Included in Written Personal Financial Plans
1. This statement provides an exemption from Statement on Standards for Accounting and Review Services (SSARS) 1, as amended, for personal financial statements that are included in written personal financial plans prepared by an accountant, and specifies the form of written report required under the exemption.1 However, this statement does not preclude an accountant from complying with SSARS 1 in such engagements.
2. Because the purpose of such financial statements is solely to assist in developing the client's personal financial plan, they frequently omit disclo-sures required by generally accepted accounting principles (GAAP) and contain departures from GAAP or from an established comprehensive basis of accounting other than GAAP.
3. An accountant may submit a written personal financial plan containing unaudited personal financial statements to a client without complying with the requirements of SSARS 1, as amended, when all of the following conditions exist:
a. The accountant establishes an understanding with the client, preferably in writing, that the financial statements—
(i) Will be used solely to assist the client and the client's advisers to develop the client's personal financial goals and objectives.
(ii) Will not be used to obtain credit or for any purposes other than developing these goals and objectives.
1. For purposes of this statement, personal financial statements are those financial statements of an individual that meet the definition of financial statements in paragraph 4 of SSARS 1, Compilation and Review of Financial Statements.
Copyright © 1986 by the
American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N. Y. 10036-8775 1234567890 AudS 8 9 876
Statement on Standards for Accounting and Review Services
Issued by the Accounting and Review Services Committee
American Institute of Certified Public Accountants