Revenue recognition must be included in a company’s summary of significant accounting policies
In the notes of the Financial Statement
Basis of profit recognition on long-term construction contracts are disclosed in
A summary of significant accounting policies
Also criteria for a determining which investments are treated as a cash equivalents
Information about change in stockholders’ equity would be disclosed in
The footnotes of the financial statement
The summary of significant accounting policies includes disclosure of:
- Measurement bases used in preparing the financial statement
- Specific accounting principles and methods used during the period, including:
*Basis of consolidation
*Depreciation methods
*Amortization of intangibles
*Inventory pricing
*Use of estimates
*Fiscal year definition
*Special revenue recognition issues (ex. Long-term construction contracts, franchising, leasing operations, etc.)
*Criteria for determining which investments are treated as cash equivalents
Company should not duplicate the information provided in the notes for later footnotes
But present calculations of the inventory and plant assets amounts that reflect the new policies
The disclosure of revenue for each two customers would bee to be disclosed in
The annual financial statments
Disclosure of vulnerability to concentration is required if all the following criteria are met:
*The concentration exist as of the financial statement date
* The concentration makes the entity vulnerable to the risk of near-term server impact
*It is at least reasonably possible that the events that could causes a severe impact from the vulnerability will occur in the near term
If a note payable that exist as of the balance sheet date, and the refinancing occurred prior to the statement being issued
The liability should be recognized as non-current and note disclosure should be added to the financial statements explained the change in classification
Information that is not pertinent to a company’s financial statements is not
Included in the footnotes
Even if this meeting took place during the subsequent events evaluation period, no disclosure would be necessary because no event actually occurred
Disclosures of accounting policies (and all other disclosure also) is an
Intergalactic part of the financial statement date
Under US GAAP, disclosure of significant estimates is required only when two conditions are met:
*It is reasonably possible (not just probable) that the estimate will change in the near term
*The effect of that change would be material to the financial statements
