Notes to the Financial Statements

Question 1

The summary of significant accounting policies is typically the first note provided after the financial statements and will include components such as:

Answer 1

Measurement basis, accounting principles and methods, criteria, policies such as basis of consolidation, depreciation methods, revenue recognition, etc.

Question 2

When should significant estimates be disclosed?

Answer 2

Significant estimates should be disclosed when it is reasonably possible (no probable) that the estimate will change in the near term and that the effect will me material. Immaterial items are not disclosed.

Question 3

What criteria must be met when disclosing vulnerability to concentration?

Answer 3

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