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Is depreciation schedule required to be disclosed in the notes to financial statements?
Wiki User
∙ 9y ago
Yes depreciation schedule is required to disclose for the better understanding for the reader of the books of accounts.
Wiki User
∙ 9y ago
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Is audit required?
A Partnership firm is not required to file audited financial statements with the Ministry of Corporate Affairs each year. Therefore, audit of financial statements is not required. However, tax audit may be required for a Partnership firm if the turnover exceeds prescribed limits.
What two company officers are required to certify the financial statements?
CE and CF
Companies that are listed on a stock exchange are required to submit their financial statements to the?
sec
Companies that are listed on stock exchange are required to submit their financial statements to the?
sec
Why company directors fees disclosure is important?
all types of accounting information disclosed in financial statements are important. it is legal and mandatory in many countries . also the ISAAB board under IAs 700 the report formats dictates a lot of expressions and disclosures required .
Why companies consolidate their subsidiaries for financial reporting purposes?
Subsidiary companies are also part of group of companies so parent company is required to show the financial statements of group as a whole so that's why consolidated financial statements are prepared
How do you get audited financial statements for hospital?
If it is a publicly held entity they should post the financial statements on their website or provide a copy if you request one. (They are required to provide them.) If it is a privately held entity then you have to ask very politely and have a valid reason as to why you would need them. (They are NOT required to provide them.)
When is the income statement prepare?
Usually at the end of the financial period. It depends on the regulations of the country as well. In Singapore, companies are required to submit financial statements quarterly.
Does GAAP require comparative financial statements?
profit public companies dealing in the money markets required to provide Comparative balance sheet,profit and loss , cashflow statements.
Under what circumstances do financial reviews have legal force?
Publicly owned companies are required to file quarterly financial statements and the company's external public auditor is required to perform a review at the end of the first three quarters
Should quarterly financial statement be audited?
In the US, there is no law requiring that quarterly financial statements be audited.Financial statement audits are extremely expensive and time-consuming, so there should be some compelling reason for a company to have its financial statements audited.For the typical US company, the expense of having its financial statements audited is probably not worth any benefit it might receive as a result of the audit, and for US nonpubliccompanies, audits are not required by law. An outsider such as a bank might want to see audited financial statements from a prospective borrower, but even then, audits are so expensive that this would be relatively rare. The company might need another loan just to pay for the audit!However, publicly owned companies (companies that sell shares of stock to the general public), howver, are required by law to have an annual audit of their financial statements by an independent CPA. This is to help protect the public.However, not even publicly owned companies are required to have their quarterly financial statements audited. Only their annual financial statements must be audited.Although public companies must submit quarterly financial report information to the SEC, the first three quarters' financial statements need only be "reviewed" by an independent CPA. A review involves limited testing procedures that are much less in-depth and time-consuming (and expensive) than audit procedures, and this permits the company to submit its financial information to the SEC on a timely basis. However, the fourth quarter report submitted by a public company must include audited financial statements for the entire year.
What are the limitations of financial statement?
Financial statements are based on historical costs and as such the impact of price level changes is completely ignored. They are interim reports. The basic nature of financial statements is historic. These statements are neither complete nor exact. They reflect only monetary transactions of a business. The following limitations may be noted: 1. The financial position of a business concern is affected by several factors-economic, social and financial, but financial factors are being recorded in these financial statements. Economic and social factors are left out. Thus the financial position disclosed by these statements is not correct and accurate. 2. The profit revealed by the Profit and Loss Account and the financial position disclosed by the Balance Sheet cannot be exact. They are essentially interim reports. 3. Facts which have not been recorded in the financial books are not depicted in the financial statement. Only quantitative factors are taken into account. But qualitative factors such as reputation and prestige of the business with the public, the efficiency and loyalty of its employees, integrity of management etc. do not appear in the financial statement. 4. The rupee of 1995, as for example, does not mean the same as the rupee of 2010. The existing historical accounting is based on the assumption that the value of monetary unit, say rupee, remains constant and accordingly assets are recorded by the business at the price at which they are required and the liabilities are recorded at the amounts at which they are contracted for. But monetary unit is never stable under inflationary condition. This instability has resulted in a number of distortions in the financial statements and is the most serious limitation of historical accounting. 5. Many items are left to the personal judgment of the accountant. For example; provision of depreciation, stock valuation, bad debts provision etc. depend on the personal judgment of accountant. 6. On account of convention of conservation the income statement may not disclose true income of the business since probable losses are considered while probable incomes are ignored. 7. The fixed assets are shown at cost less depreciation on the basis of "going concern concept" (one of the accounting concept). But the value placed on the fixed assets may not be the same which may be realized on their sale. 8. The data contained in the financial statements are dumb; they do not speak themselves. The human judgment is always involved in the interpretation of statement. It is the analyst or user who provides tongue to those data and make them to speak.
