1. A Global Reach with a Local Perspective www.decosimo.com Reporting Options for Small Businesses Tom Eiseman, CPA | Principal in Charge of Assurance

2. Financial statements prepared in accordance with accounting principles generally accepted in the U.S. Financial statements prepared in accordance with U.S. GAAP except for the omission of substantially all disclosures and/or the cash flow statement Financial statements prepared in accordance with U.S. GAAP except for certain departures GAAP financial statements 3. Financial statements prepared in accordance with International Financial Reporting Standards Financial statements prepared in accordance with IFRS for SMEs IFRS 4. Cash basis. A basis of accounting that the entity uses to record cash receipts and disbursements and modifications of the cash basis having substantial support (for example, recording depreciation on fixed assets). Tax basis. A basis of accounting that the entity uses to file its tax return for the period covered by the financial statements. Special purpose financial statements 5. Regulatory basis. A basis of accounting that the entity uses to comply with the requirements or financial reporting provisions of a regulatory agency to whose jurisdiction the entity is subject. Contractual basis. A basis of accounting that the entity uses to comply with an agreement between the entity and one or more third parties. Special purpose financial statements 6. Other basis. A basis of accounting that uses a definite set of logical, reasonable criteria that is applied to all material items appearing in financial statements. This includes the Financial Reporting Framework for Small- and Medium-Sized Entities Special purpose financial statements 7. Is the fair value basis a special purpose framework? Is the liquidation basis a special purpose framework? Special purpose financial statements 8. Determining the acceptability of the financial reporting framework requires considering The purpose for which the financial statements are prepared The intended users Special purpose financial statements 9. Presentation of a single financial statement using any acceptable framework or special purpose framework. Relevant disclosures are required. Balance sheet only presentation is most common. Single Financial Statements 10. Elements, accounts or items of a financial statement commonly reported include: Single elements such as accounts receivable or inventory A schedule of accounts such as expenses related to a leased property Relevant disclosures are required. Elements, accounts or items of a F/S 11. Audit Review Compilation Examination Agreed-upon procedures Reporting by accountants 12. Tom Eiseman, CPA Principal In Charge of Assurance tomeiseman@decosimo.com 423-756-7100 Contact the Subject Matter Expert Tom has experience with clients in a variety of industries, including manufacturing, distribution, securities brokers and dealers, investment entities, oil and gas exploration, restaurants, broadcasting and not-for-profit entities. He has been involved with initial public offerings and periodic SEC filings for over 25 years. His experience includes clients with extensive international operations. He is licensed to practice in Tennessee, Georgia and Massachusetts. Tom is a member of the American Institute of Certified Public Accountants (AICPA) and the Tennessee Society of Certified Public Accountants (TSCPA). He currently is a member of the TSCPAs Peer Review Committee. 13. Questions?