F2 M4 Notes to Financial Statements

Question 1

When should a significant estimate be disclosed in the notes to the financial statements?

Answer 1

When it is reasonably possible that the estimate will change in the near term and that the effect of the change will be material.

Question 2

What information about a company’s marketable securities is required to be disclosed in a footnote to the financial statements?

Answer 2

The carrying value and the gross unrealized gains and losses

Question 3

What are the criteria for determining whether to disclose information in the footnotes to the financial statements about vulnerability to a concentration of revenues?

Answer 3

• The concentration exists as of the financial statement date.
• The concentration makes the entity vulnerable to the risk of a near-term severe impact.
• It is at least reasonably possible that the events that could cause a severe impact from the vulnerability will occur in the near term.