Financial Statements and Reporting In and Out of Bankruptcy

Summary

This practice note covers financial statements, 13-week cash flow (TWCF) projections, and financial reporting during a Chapter 11 bankruptcy case. In the United States, businesses generally present financial information in the form of financial statements and supplementary disclosures that are prepared in accordance with generally accepted accounting principles (GAAP). Typically, these financial statements are presented on an accrual basis and presume that the business will continue to operate. Although there are other bases of accounting that may be appropriate, this practice note will focus on accrual accounting for a continuing business.