Wiley Practitioner's Guide to GAAS 2013: Covering all SASs, SSAEs, SSARSs, and Interpretations

AR 600: Reporting on Personal Financial Statements Included in Written Personal Financial Plans1

EFFECTIVE DATE AND APPLICABILITY

Original Pronouncement	Statement on Standards for Accounting and Review Services (SSARS) 6.
Effective Date	This statement currently is effective.
Applicability	An accountant may opt for an exemption from AR Section 80 for certain personal financial statements included in written personal financial plans. The section does not preclude an accountant from complying with AR Section 80. The section applies to personal financial statements whether the basis of accounting is generally accepted accounting principles (GAAP) or an other comprehensive basis of accounting (OCBOA).

DEFINITIONS OF TERMS

This section does not contain any definitions.

OBJECTIVES OF AR SECTION 600

Personal financial statements included in personal financial plans (1) frequently omit disclosures and (2) contain departures from GAAP (or OCBOA). If the purpose of those financial statements is solely to assist in developing the personal financial plan, SSARS 6 provides for an exemption from AR Section 80 and an alternative report that should be used if the exemption is followed.

FUNDAMENTAL REQUIREMENTS

Exemption

According to AR 600.03, an accountant may submit a written personal financial plan containing unaudited personal financial statements to a client without following AR Section 80, if:

1. The accountant establishes an understanding, preferably in writing, with the client ...