Opinion ID: 355147
Heading Depth: 2
Heading Rank: 2

Heading: As to Generally Accepted Accounting Principles

Text: 22 Plaintiff alleges that the Recognition financial statements were not prepared in accordance with generally accepted accounting principles and did not fairly present the true financial position of the company. 23 Defendants submitted several affidavits from experts which flatly concluded that Recognition's financial statements were prepared in accordance with generally accepted accounting principles, but plaintiff's affidavits from his accounting expert detailed a contrary opinion. 24 Defendants argue that an analysis of the affidavits reveals no genuine issue as to the propriety of the accounting methods employed in the financial statements. They argue that the statements, when read with the accompanying notes, reveal all that is required by generally accepted accounting principles, and that the consolidation touted by plaintiff and his expert would actually have been contrary to the law and generally accepted accounting principles in effect at that time. 25 The analysis of these arguments, however, is an exercise initially for the district court. The district court's decision, granting summary judgment to defendants based on the reliance issue, made no mention as to whether the district court considered there to be a genuine issue of a material fact as to the fair presentation and disclosure of the financial condition of the company. On remand, the district court is free to consider the propriety of summary judgment on any ground it has not previously ruled upon. 26