F2: M4-Notes to Financial Stmts

Question 1

When is a Disclosure of Vulnerability to Concentration required?

Answer 1

1) The concentration exists as of the financial statement 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.

Question 2

What is the Summary of Significant Accounting Policies?

Answer 2

It is typically the first note provided after the financial statements and includes things like: measurement bases, accounting principles and methods, criteria, and policies such as basis of consolidation, depreciation methods, revenue recognition, etc.