Compilations and Notice to Reader

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My Notice to Reader currently looks something like this ..

NOTICE TO READER

I have compiled the balance sheet of [company name] as at [year end date] and the statement[s] of income and retained earnings [and of cash flows] for the year then ended from information provided by the company [or management or proprietor etc]. I have not audited, reviewed or otherwise attempted to verify the accuracy or completeness of such information. Accordingly I caution, that these financial statements may not be appropriate for the reader’s purposes.

[my signature]

[date]
[location]

Today .. in the “What’s New” section at the CICA site I noticed this:

August 23, 2006
Standards
Compilation Engagements
The AASB has issued an Exposure Draft of revised Section 9200, Compilation Engagements, proposing to revise the wording of the Notice to Reader and to remove from the scope of Section 9200 financial information prepared on government-prescribed forms solely for inclusion with corporate, trust and personal income tax filings. The comment period ends October 18, 2006.

Basically .. they are suggesting that for Compilations .. the Notice to Reader should be changed to something like this:

NOTICE TO READER

I have compiled the balance sheet of [company name] as at [year end date] and the statement[s] of income and retained earnings [and of cash flows] for the year then ended from information provided by the company [or management or proprietor etc]. I have not performed an audit or a review engagement on these financial statements and, accordingly, I express no assurance thereon. Readers are cautioned that these financial statements may not be appropriate for their purposes.

[my signature]

[date]
[location]

What do you think about these changes?

Actually, I’m still modifying my templates as I go along from CAPITAL ASSETS back to FIXED ASSETS and AMORTIZATION back to DEPRECIATION (at least for tangible assets). I try to keep current somewhat on this type of stuff.

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