Under certain circumstances,it is permissible to issue financial statements that contain a material departure from GAAP.

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While it is generally not permissible to issue financial statements that depart from GAAP, there are some circumstances where alternative accounting principles may be used or disclosure of the departure made. Some examples of when a departure from GAAP may be allowed include when the application of GAAP would result in misleading financial statements, or if compliance with GAAP would be excessively burdensome or costly. In such cases, the financial statements must clearly disclose the nature and financial impact of the departure.

Under Certain Circumstances,it Is Permissible to Issue Financial Statements That