Financial Reporting Framework for Small and Medium Sized Entities (FRF for SMEs)
Evolution of a New Non-GAAP Reporting Option
Write a short paper that addresses the following questions:
What is it?
- What types of entities can use it? What entities cannot use it?
Why was it developed?
Relate it to the Tax Basis, Cash or Modified Cash Basis
- What are the major differences between FRF for SMEs and U.S. Generally Accepted
Accounting Principles?
- What are the advantages of FRF for SMEs? What entities should use it?
What are the disadvantages of FRF for SMEs? What entities shouldn't use it?
- Be sure to address the cost issue when addressing the advantages and disadvantages.