When regulatory requirements do not require financial statements to follow generally accepted accounting principles (GAAP), other comprehensive basis of accounting (OCBOA) strategies may be implemented. OCBOA is an alternative method to GAAP that results in a more cost-effective financial statement that is easier to understand.
An OCBOA can be:
- A statutory basis of accounting — that is, a basis of accounting companies use under the rules of a regulatory commission
- Income-tax-basis financial statements, including cash-basis and modified-cash-basis financial statements
- Financial statements prepared using definitive criteria having substantial support in accounting literature that the preparer applies to all material items appearing in the statements, such as the price level basis of accounting
The professionals at HBK commonly employ OCBOA methods, including cash-basis and income-tax-basis accounting, and we will work with you to implement the method that makes the most sense for your business.
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