Revising issued financial statements

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#1
COGS  
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I have issued reviewed financial statements. After that was done, the client decided to get Cost Seg. studies done so that we could amend the tax returns and make a 481 adjustment and carry the loss back 5 years because of the new rules.

I am not quite sure what I need to do for the issued financial statements for a change in accounting method.

The original financials don't have an error.

I don't think any of these rules for reissuing apply:

Change in Accounting Principle;
Change in Accounting Estimates;
Change in Reporting Entity; and
Correction of an Error in Previously Issued Financial Statements.

The change is certainly material. But it was not an error.

So what does one do? I don't know why nothing is jumping out in the PPC book.

Thank you!
 

#2
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To be clear, is your depreciation method represented on the financials still GAAP? That is, the cost seg study made no change to the reviewed balance sheet (?).

If so, why would something that doesn't affect the financials have any impact. It's not a change of accounting method for GAAP purposes?
~Captcook
 

#3
sjrcpa  
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Would the Provision for Taxes change materially?
 

#4
COGS  
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The financials are on the tax basis and this entity is a combination of an LLC with operating rental properties and with S-Corps which serves as the GP of LPs. So no change to the tax expense at all.
 


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