briefly describe the types of information concerning financial position, income, and cash flows that might be...
briefly describe the types of information concerning financial position, income, and cash flows that might be provided (a) within the main body of the financial statements, (b) in the notes to the financial statements, or (c) as supplementary information.
Homework Answers
Answer:
(a). To be recognized in the main body of financial statements,an item must meet the definition of an element. In addition the item must have been measured, recorded in the books and passed through the double entry system of Accounting.
(b). Information provided in the notes to the financial statements amplifies or explains the items presented in the main body of the statements and is essential to an understanding of the performance and position of the enterprise. Information in the notes does not have to be quanti-fiable ,nor does it need to qualify as an element.
(c). Supplementary information includes information that presents a different perspective from that adopted in the financial statements. It also includes management's explanation of the financial information and a discussion of the significance of that information.
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