The American Generally Accepted Accounting Principles (US GAAP) are widely followed accounting rules and standards used in financial reporting. US GAAP is used to ensure that every organisation’s financial statements are consistent and transparent.
These financial statements are prepared on a monthly or annual basis and are a basic requirement for all businesses to complete. This is done whenever your business’s management or board of directors choose to do it.
So, when the time comes to get your affairs in order, you’ll want to know the best practices for US GAAP-compliant financial statements in both presentation and disclosure. That’s where we come in. With 50 years of experience in advising leading companies, we provide solutions to common problems in finance and accounting. Get in touch with a member of our team to find out more.
Elements of US GAAP consolidated financial statements
When illustrating your financial statements in compliance with US GAAP, you will follow the same steps as IFRS. Without the correct information included, your business may be penalised. Ensure the following points are included:
A statement of financial position at the end of the period
Sometimes known as a balance sheet, this statement represents the assets, liabilities and equity of a business. The information reveals the overall value of a company.
A statement of comprehensive income for the period
This highlights the profit or loss for the period. This statement will include all items of income and all expenses to show the net income for a specific period.
A statement of changes in equity for the period
Any changes made to the equity of each stakeholder will be included in this section. This information will include total share capital, retain earnings and dividend payments.
A statement of cash flows for the period
Used as a summary of the movement of cash flow in and out of a business. This measures how well a business manages its cash and is a key indicator of its debt repayment potential.
Notes containing a summary of significant accounting policies and other explanatory information
If any extra information is required to support the statements above, this will be the opportunity to do so. You will also state the accounting policies that you have followed.
Why choose Kreston Global as your US GAAP financial statements solution?
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So, whether it’s private equity illustrative US GAAP financial statements or carve-out financial statements, our team can help. We have the experience and determination to drive positive results for your business.
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