Abstract: ASC 235, Notes to Financial Statements, contains one subtopic: ASC 235-10, Overall, which addresses “the content and usefulness of the accounting policies judged by management to be most appropriate to fairly present the entity's financial statement.” There are different methods of valuing assets, recognizing revenues, and assigning costs. Financial statement users must be aware of the accounting policies selected by an entity so that sound economic decisions can be made. ASC 235 requires management, in discharging this responsibility, to adopt accounting principles and methods of applying them that are the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations, in accordance with generally accepted accounting principles. Five disclosure techniques are used in varying degrees in contemporary financial statements: parenthetical explanations, notes to the financial statements, cross-references, valuation allowances, and supporting schedules.
Publication Year: 2019
Publication Date: 2019-03-08
Language: en
Type: other
Indexed In: ['crossref']
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