F-1 BALANCE SHEET AND DISCLOSURE OVERVIEW

Question 1

Q: Identify the contents of the Summary of Significant Accounting Policies note to the financial statements.

FAR 1-33

Answer 1

Summary of Significant Accounting Policies

Identify and describe:

• Measurement bases used in preparing the financial statements
• Principles and methods
• Criteria
• Policies
• Pricing

Question 2

Q: Describe the related party disclosures required under U.S. GAAP and IFRS.

FAR 1-34

Answer 2

• Material related party transactions.
• Related party notes/accounts receivable.
• Control relationships.

Note: IFRS requires disclosure of key management compensation.

U.S. GAAP does not require this disclosure.

Question 3

Q: What are the U.S. GAAP disclosure requirements for risks and uncertainties?

FAR 1-35

Answer 3

• Nature of operations.
• Use of estimates in preparing the financial statements.
• Significant estimates
• Current vulnerability due to certain concentrations.