Can my previous accounting policies be ‘grandfathered’ in adopting the standards for private enterprises?
Paragraph 1500.06(a) requires an enterprise to recognize assets and liabilities in accordance with the accounting standards for private enterprises. For example, if an enterprise had not previously recognized asset retirement obligations it would be required to do so. Paragraph 1500.06(b) requires an enterprise to eliminate from its balance sheet certain items that it had recognized under its previous basis of accounting. For example, if an enterprise had recognized as assets items that do not meet the definition of an asset under the accounting standards for private enterprises, those assets are to be eliminated on adoption of the standards. The accounting policies of an enterprise will need to be examined in detail in order to determine whether any adjustments are required as a result of applying paragraph 1500.06(b). In performing this examination an enterprise should refer to Section 1100 which discusses primary sources of GAAP and acceptable practice when primary sources of GAAP d
Related Questions
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