ARSD 20:75:05:06. Accounting principles

If financial statements or other financial data contain any departure from an accounting principle promulgated by the Financial Accounting Standards Board and its predecessors, the Governmental Accounting Standards Board, or by other entities having similar authority as recognized by the board, a licensee may not: (1) Express an opinion or state affirmatively that the statements or other data of any entity are presented in conformity with generally accepted accounting principles; or (2) State that the licensee is not aware of any material modifications that should be made to such statements or data in order for them to be in conformity with generally accepted accounting principles. If, however, the statements or data contain such a departure and the licensee can demonstrate that due to unusual circumstances the financial statements or data would otherwise have been misleading, the licensee may comply with this section by describing the departure, its approximate effects, if practicable, and the reason why compliance with the principle would result in a misleading statement. Generally accepted accounting principles for nongovernmental entities are those pronouncements issued by the Financial Accounting Standards Board and its predecessor entities published by the Financial Accounting Standards Board (FASB), in Accounting Standards, Current Text, General Standards, as of August 2014, and Financial Accounting Standards Board (FASB), Accounting Standards, Current Text, Industry Standards, as of August 2014. Generally accepted accounting principles for governmental entities are those pronouncements of the Governmental Accounting Standards Board published in Codification of Governmental Accounting and Financial Reporting Standards, as of June 30, 2014.