New financial reporting option is available — but not right for everyone

Description

Abstract: Recently, the American Institute of Certified Public Accountants introduced an “other comprehensive basis of accounting” called the “Financial Reporting Framework for Small- and Medium-Sized Entities” (FRF for SMEs). Designed to provide a simpler, cost-effective reporting solution for businesses that aren’t required to use Generally Accepted Accounting Principles, it blends traditional and accrual income tax accounting methods. This article explains how the FRF for SMEs works, along with the mixed reviews it’s received.