AICPA issues TQAs on use of inappropriate accounting standards

By Ken Tysiac

The AICPA issued technical questions and answers (TQAs) Wednesday that address reporting on financial statements developed using an inappropriate set of standards.

Developed in response to recent questions from AICPA members auditing governmental entities, including Indian tribes, the TQAs provide nonauthoritative guidance.

TQA Section 9160.31–.35 also discusses:

  • Whether an entity is a state or local government for purposes of determining whether it is using the appropriate set of accounting standards.
  • How to report on the entity’s financial statements when the entity elects to follow either a different set of standards or a special-purpose framework.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.

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