Don’t Fall Into the GAAP – Reasons to Consider an Alternative
Some Choices with the Pros and Cons of Each
Registration Fee – $49
February 18, 2021 – 2:00 – 4:00 pm PST (2.0 CPE)
Prerequisites: A good understanding of basic GAAP
Advance Preparation: None
Field of Study: Accounting and Auditing (A&A)
GAAP has gotten increasingly burdensome over the last several decades, often requiring complex analyses of transactions, resources, and obligations and the accumulation of volumes of information either of which may be difficult and costly. As the demands of complying with GAAP increase, the risk of errors or omissions increases the potential liability of accountants responsible for financial reporting, and CPAs reporting on financial statements prepared in conformity with GAAP.
Non-public entities that are not required to apply GAAP by contract, regulation or the requirements of a lender or owner have several alternatives to GAAP, some of which provide financial statements comparable to GAAP statements while others that are not comparable may still meet the needs of financial statements.
This session will briefly describe some of the reasons to consider an alternative to GAAP and will provide examples and explanations of some of the alternative frameworks available. US GAAP, International Financial Reporting Standards (IFRS), and IFRS for Small to Medium-Sized Entities (SMEs) are recognized as GAAP in the US. Alternative frameworks include the AICPA’s Financial Reporting Framework (FRF) for SMEs, the cash basis, modified cash basis, and tax basis of reporting as well as a regulatory basis or a contractual basis.
For entities insistent on using GAAP, this session will provide a suggested methodology for controlling the cost of applying GAAP, provide a training tool for firm professionals, and a value-added service a CPA may provide for clients.
Objectives expected to be accomplished include:
- Learn how to determine when GAAP is the best alternative
- Identify the alternatives to GAAP and key differences among them and from GAAP
- Understand the differences from GAAP in the appearance of financial statements prepared under an alternative financial reporting framework
- Develop an approach to applying GAAP that can increase efficiency without sacrificing the quality of financial reporting
Mark Dauberman, Bio
Mark provides CPE and technical staff training for CPA firms, private industry, state CPA societies, and government organizations. His topics include accounting, SSARS, ethics, fraud, internal and external auditing, internal control development (COSO), entrepreneurship, and developing a business plan. Mark is in the process of initiating a new entity, The Internal Control Institute, which will be offering CPE and staff training related to internal controls, and in conjunction with professors from Claremont Graduate University, will be providing internal control consulting.
Mark is also an expert witness in the defense of CPAs in cases involving primarily ethics, fraud, and compliance with standards in the performance of professional services.
Mark also provides consulting services to CPA firms with an A & A practice that do not have an expert on GAAP or requirements of Professional Standards within the firm. He addresses such matters as conformity with GAAP, adequacy of disclosures, compliance with professional standards, risk assessment, development and performance of audit and review processes, engagement documentation, compilation and preparation engagements, ethics and independence requirements, assessing and enhancing internal controls for the firm and clients, preparation for peer review, and staff training and CPE. He also provides consulting services related to client management and marketing.
Mark’s public accounting experience includes working with Kenneth Leventhal & Company and more recently, he was a partner at NSBN, a Beverly Hills CPA and business consulting firm. Mark’s industry experience includes serving as assistant controller of a large trucking and warehousing firm along with controller and Vice President of Finance and Administration for major real estate development companies. Mark also spent nearly 30 years as an entrepreneur, operating a company that prepared individuals for the CPA exam nationwide.
Mark has been involved in accounting education at CSU Northridge, CSU San Bernardino, Loyola Marymount University, and UCLA. He obtained his bachelor’s degree in accounting from CSU Northridge. He obtained his Executive MBA at the Peter Drucker and Masatoshi Ito School of Management at Claremont Graduate University, where he previously had been a student of Dr. Drucker’s. He also obtained an Internal Control Certificate from COSO. Until recently, he authored “Knowledge-Based Preparation, Compilation, and Review Engagements” for CCH and updated their checklists for SSARS engagements. He also served as Senior Editor for Roger CPA Review.
Mark Currently provides CPE and technical staff training for CPA firms, private industry employers of accountants, and government organizations on topics that include accounting, compilation, and review, fraud, internal and external auditing, developing internal controls, strategic planning, and practice management. He is also the Senior Editor for Roger CPA Review Course and author’s CCH’s “Knowledge-Based Compilations and Reviews”.
Mark’s public accounting experience includes working with various local firms throughout high school and college, and employment with Kenneth Leventhal & Company. More recently, he was a partner at NSBN, a Beverly Hills CPA and business consulting firm, where he served as director of the audit practice and was responsible for recruiting, training, business development, quality control, and strategic planning for the firm. Mark’s industry experience includes serving as assistant controller of a large trucking and warehousing firm. He has been both a controller and the Vice President of Finance and Administration for major real estate development companies. Mark also spent nearly 30 years as an entrepreneur, operating a business that prepared individuals for the CPA exam.
Mark taught his first university accounting class in 1969 and has been involved in accounting education since most recently as a visiting lecturer at California State University at San Bernardino.
Mark obtained his bachelor’s degree in accounting from California State University at Northridge. He obtained his Executive MBA at the Peter Drucker and Masatoshi Ito School of Management at Claremont Graduate University, where he previously had been a student of Dr. Drucker’s.