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What best exemplifies a contingency that is reported in the notes to the financial statements?
Wiki User
∙ 12y ago
Estimated loss from an ongoing lawsuit
Wiki User
∙ 12y ago
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What is Unearned revenue reported as in a financial statements?
A liability.
Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information?
timeliness
How are compensating balances reported?
They are reported within the discolsure notes to the financial statements. A material compensating balance must be disclosed regardeless of the classification of the cash. Classification depends on the nature of the restriction and the classification of the related debt.
How is the balance sheet linked to the other financial statement?
balance sheet is linked to financial statements as both statement are prepared for business authenticity, and are also link to each other because it is government requirements.
Show the treatment of bad debts in financial accounts?
Treatments of bad debts in financial accounts:-A. Revenues should be reported net of discounts and allowances with the discount amount parenthetically disclosed on the face of the statement or in the notes to the financial statements. Alternatively, revenues may be reported gross with the related discounts and allowances reported directly beneath the revenueamount.B. Provision must be made for bad debt estimates each year. Tuition and fees should be reported net of allowances and discounts. As such, increases in allowances for bad debts are recorded as a reduction in revenues rather than anexpense.C. With regard to the presentation of the provision for bad debt estimates taken as a reduction of tuition and fee revenue, this should be deducted from the gross tuition and fee line item and should not be separately displayed on the face of the statement. This treatment is different than scholarship allowances which are required to be disclosed either on the face or in the notes to the financial statements.
Unearned revenue is reported in the financial statement as what?
How do you reported unearned janitorial revenue in the financial statements
What is Unearned revenue reported as in a financial statements?
A liability.
Where is Cash flow per share reported?
Cash flow per Share is sometimes reported in the financial press. It is not to be reported on the financial statements.
Presenting consolidated financial statements this year when statements of individual companies were presented last year is?
an accounting change that should be reported by restating the financial statements of all prior periods presented.
When reported in financial statements a lifo allowance account usually?
Indicates the effect on income if LIFO were not used.
Changing the method of inventory valuation should be reported in the financial statements under what qualitative characteristic of accounting information?
timeliness
How should nonconsolidated subsidiaries be reported in consolidated financial statements?
Nonconsolidated subsidiaries are expected to be relatively rare. In those situations where a subsidiary is not consolidated, the investment in the subsidiary should be reported in the consolidated statement of financial position at cost, along with other long-term investments.
How are compensating balances reported?
They are reported within the discolsure notes to the financial statements. A material compensating balance must be disclosed regardeless of the classification of the cash. Classification depends on the nature of the restriction and the classification of the related debt.
What is fraudulent financial reporting?
Confidence in the operation of capital markets is compromised when the system of public disclosure is eroded by reported instances of fraudulent reporting.
Why are there no capital assets in governmental type funds?
There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
Why are there no capital assets in government type funds?
There are no capital assets in governmental-type funds because those funds account only for inflows and outflows of financial resources. Governmental-type funds can be used and indeed are used to acquire capital assets. When that happens, however, the accounting within the funds is such that there is an expenditure of financial resources, rather than an exchange of a financial resource for a capital asset. Capital assets are reported in government-wide financial statements, but not in fund financial statements.
What new accounting procedures has the FASB put into place for reporting on derivative?
Derivatives must now be reported at their fair values in financial statements. Gains and losses from derivative transactions must be reported currently in income, except from those transactions that qualify as effective hedges.
