FAR Notes to Financial Statements

Question 1

What is the purpose of notes to the F/S

Answer 1

To provide disclosures required by GAAP

Question 2

What significant accounting policy should be disclosed

Answer 2

Criteria for determining which investment are treated as cash equivalents

Question 3

What disclosures are required under IFRS but not under USGAAP

Answer 3

1. Statement of compliance with applicable accounting principles
2. Disclosures of judgements made in the preparation of F/S

Question 4

What are the criteria for disclosure of vulnerability to concentration?

Answer 4

1. The concentration exists as of the F/S date
2. The concentration makes the entity vulnerable to the risk of a near-term severe impact
3. It is at least reasonably possible that the events that could cause a severe impact from the vulnerability will occur in the near term.