Companies that are not subject to SEC regulations can choose to present financial information in accordance with a special purpose framework other than GAAP.

Question

Quizplus · Accepted Answer

Companies that are not subject to SEC regulations can choose to present financial information in accordance with a special purpose framework other than GAAP, such as the cash basis, income tax basis, or regulatory accounting principles. However, if they choose to use GAAP, they must comply with the same rules and standards as SEC-registered companies.

Companies That Are Not Subject to SEC Regulations Can Choose