Farzana Perven
Cloud Accountant I Remote Bookkeeper I QuickBooks Advanced ProAdvisor and Certified Xero, Freshbooks, Zoho Books Advisor I Dedicated to small-medium sized businesses Bookkeeping services
Published Jun 4, 2023
General purpose financial statements (GPFS) are prepared for a wide range of users, including investors, creditors, and other stakeholders. They are intended to provide a comprehensive overview of the financial performance and position of an entity. GPFS must comply with all applicable accounting standards, and they are typically prepared on an annual basis.
Special purpose financial statements (SPFS) are prepared for a specific purpose or for a limited group of users. They may be prepared for tax purposes, regulatory compliance, or for internal management purposes. SPFS are not required to comply with all accounting standards, and they may be prepared on a more frequent basis than GPFS.
It is important to note that there is no hard and fast rule about when to use GPFS or SPFS. The best approach will vary depending on the specific circ*mstances of the entity.
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Here are some examples of when SPFS might be used:
Here are some examples of when GPFS might be used:
Ultimately, https://www.fiverr.com/s/E5K1D7 the decision of whether to use GPFS or SPFS should be made by the entity in consultation with its accountants and lawyers.
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