Notes to the Financial Statements

Question 1

Disclosure requirements related to risks and uncertainties under US GAAP? (4)

Answer 1

1. Disclosure of vulnerability due to all identified concentrations
2. Estimates of the effects of changes in significant estimates
3. A statement that actual results could differ from the estimates included in the financial statements
4. Nature of operations

Question 2

When are Identified concentrations required as a disclosure? (3 points)

Answer 2

ONLY IF the following are met
1. concentration exists at the F/S date
2. concentration makes the entity vulnerable to the risk of a near-term severe impact
3. It is reasonably possible that the events that could cause the impact will occur in the near term