FINANCIAL STATEMENT REQUIREMENTS

Simple as Possible, but not Simpler (Einstein)

To Prepare, Understand and Audit

Universal Application

Ability to use internally, externally, across all lines of business for any industry and/or company or organization

Flexibility

Tailor the financial statements to the benefit of the user and/or issuer (i.e. reflect the economics of the business or organization)

New Financial Reporting Method

The financial reporting method provided in this site meets the three requirements above and more. It is a cash based reporting method which places the focus on “cash” transactions during the reporting period. In simple terms, what were the sources and uses of cash. It simplifies financial reporting by substantially reducing the accounts on the balance sheet and creating two new statements to replace the statement of cash flows and the income statement. The two new statements are the statement of sources and uses and the statement of retained earnings reconciliation.

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Next Steps

Step 1 – Stop requiring financial statements be prepared under US GAAP.

Step 2 – Implement the financial reporting method outlined provided in this site. If you need assistance, please contact me. Full Disclosure: This method has not been tested or endorsed by any accounting organization or academic institution. 

Step 3 – Have the financial information audited.