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Section 7600, Reports on the Application of Accounting Principles

Ef­fec­tive date:

Applies to reports dated on or after May 1, 2004  


There may be differing interpretations as to whether and how existing generally accepted accounting principles apply to specific transactions and financial products. Management and others may consult with accountants other than the incumbent accountant on the application of accounting principles to those transactions and products on which the incumbent accountant has already provided guidance. A reporting accountant needs to be alert to possible undue pressure on the judgment and objectivity of an incumbent accountant and, accordingly, would seek to minimize the risk of giving inappropriate guidance because of limited knowledge of facts and circumstances. The guidance in Section 7600, Reports on the Application of Accounting Principles, helps to ensure that reporting and incumbent accountants have access to the same information.

This Section applies when an entity requests that a reporting accountant provide a written report or oral advice on: (i) the application of accounting principles to a specific transaction; or (ii) the type of opinion that may be rendered on the entity's financial statements; after having already obtained guidance from its incumbent accountant on this matter.

His­tory of Sec­tion 7600

There have been no amendments to Section 7600 since its date of issue.

Note: Our history summary does not take into account consequential amendments made as the result of other projects.

Amendments under consideration

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.