Certified Financial Statement

[peggysioux]

Just trying to understand the process of the "certified" financial statements. Taxpayer provided a P&L for 2011 so that I could complete 2011 tax return and I asked for a breakdown of the depreciation that showed on the P&L. The breakdown showed 2010 depreciation with a date of 4/11/11. So I asked taxpayer why 2010 depreciation was showing on 2011 P&L; shouldn't it be moved to 2010? I was told that their "certified financial statement" was completed in February so if correction was made to move the 2010 depreciation into 2010, their certified financial statement would be incorrect. Isn't it already incorrect and how could it have been certified with incorrect information??

[taxmandan]

I would ask whomever 'certified' the statement what's up with the depreciation. What standard was used to 'Certify' the information? As usual the client probably hasn't a clue. I'm not an accountant but I've only heard of Compiled, Reviewed and Audited Financial Statements according to GAAP or GAAS.

[ChEAr$]

Maybe that "certified" statement was prepared by a "RPA", registered public accountant (grin

A local preparer died last month. Long time ago he styled himself as a PA public accountant, even though Georgia and Alabama had done away with said status unless one had been grandfathered in. He didn't qualify on that either.

So curious, I looked in the phone book at his white page listing. by his name was
"R*P*A"

[Uncle Sam]

Certified Financial Statement

The explanation doesn't make sense to the situation posed.

The only conceivable explanation I can find is if you're dealing with real estate
and had a cost segregation study done to redistribute depreciable asset costs
where a one-time catch-up adjustment can be made.

If the financial statement was audited, then there should be a footnote disclosing
depreciation calculations.

Someone is misinterpreting information somewhere because audited financial
statements shouldn't have these discrepancies without an explanation.

[JG EA]

Maybe that "certified" statement was prepared by a "RPA", registered public accountant (grin

A local preparer died last month. Long time ago he styled himself as a PA public accountant, even though Georgia and Alabama had done away with said status unless one had been grandfathered in. He didn't qualify on that either.

So curious, I looked in the phone book at his white page listing. by his name was
"R*P*A"

Maybe it was a misprint that should have read "RIP".

[ChEAr$]

Maybe it was a misprint that should have read "RIP".

Any taxpayer who used to send handwritten letters to the IRS on clients' behalf, with no POA should not RIP. grin