FAR 1.4 NOTES TO F/S

Question 1

RELATED PARTY DISCLOSURE

Answer 1

There should be a disclosure of all material transactions between related parties. This includes the disclosure of amounts due to/from related parties.

Question 2

Significant accounting policies

Answer 2

Significant accounting policies are included as an integral part of the financial statements to identify and describe accounting principles and methods, recognition criteria, measurement bases and must include:-

Accounting principles especially when alternatives exist.

Principles peculiar to a particular industry.

Unusual or innovative application of accounting principles.