Notes to Financial Statements

Question 1

Summary of Significant Accounting Policies

Answer 1

Require as integral part of Fin. Stmts for GAAP & IFRS

Question 2

Significant Accounting Policies

Answer 2

Include as first or second note to the FS’s

Question 3

Identify & Describe Significant Accounting Policies

Answer 3

a. Measurement bases used in preparing Financial Stmts
b. Accounting principles and methods
c. Criteria
d. Policies
e. Pricing

Question 4

Accounting Policies commonly described in this footnote

Answer 4

a. Basis of consolidation
b. Depreciation methods
c. Amortization of intangibles
d. Inventory pricing
e. Accountng for recognition of profit on long-term construction contracts
f. Recognition of revenue from franchising or leasing operations

Question 5

Items NOT included in footnote:

Answer 5

a. Composition of accounts and amounts in $s of account balances
b. Details relating to changes in accounting principles
c. Dates of maturity and amounts of long-term debt
d. Yearly computation of depreciation, depletion and amortiz.