FINANCIAL STATEMENT REQUIREMENTS
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.
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.