Chapter 1 Section 8: Balance Sheet and Disclosures Overview

Question 1

What is the summary of significant accounting policies?
Where is it displayed?
What does it include?

Answer 1

A US GAAP and IFRS-required description of all significant policies. It is an integral part of the financial statements and should be at the beginning of the notes. It can include Measurement basis, accounting principles and methods, criteria, policies, and pricing.

Question 2

How do GAAP and IFRS deal with related party disclosures?

Answer 2

They both require disclosure of related party transactions. Principal owners are included as related parties in GAAP, but not IFRS.

Question 3

What related party disclosures does GAAP not require, but IFRS does?

Answer 3

Allowance for bad debts, bad debt expense, write-offs, and key management compensation agreements.