F3-M4 Notes to FS

Question 1

Which of the following information should be disclosed in the summary of significant accounting policies?

Answer 1

Criteria for determining which investments are treated as cash
equivalents

The method of determining which assets are considered to be cash equivalents is a significant accounting policy.

Question 2

Following is not a disclosure requirement related to risks and uncertainties under US GAAP?

Answer 2

NOT a disclosure requirement: of significant estimates when it is probable that the estimate will change in the near term, even if the effect of the change will be immaterial.

YES disclosure requirement:
of an entitiy’s major products or services and its principle markets.
of the use of estimates in the preparation of the financial statements.
of concentrations when it is reasonably possible that a concentration could cause a severe impact in the near term.