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What do auditors refer to situations in which the outcome of a matter cannot be reasonably estimated at the time of the financial statements are issued as?
Wiki User
∙ 12y ago
These are called uncertainties. Examples are:
1--realizability of a significant A/R
2--litigation contingency
Wiki User
∙ 12y ago
Auditors refer to situations where the outcome of a matter cannot be reasonably estimated at the time of issuing the financial statements as an uncertainty. Uncertainties are disclosed in the financial statements to notify users that there is a potential for a significant impact on the financial statement values. Auditors evaluate the nature and extent of uncertainties to determine if appropriate disclosures have been made.
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What are projected financial statements?
Projected financial statements are estimated financial statements before starting of any operating activity for planning purpose.
What best exemplifies a contingency that is reported in the notes to the financial statements?
Estimated loss from an ongoing lawsuit
How might changing one of the financial statements affect the other financial statements?
How might changing one of the financial statements affect the other financial statements?
What are limitations of financial management?
Financial Statements Are Derived from Historical Costs. ... Financial Statements Are Not Adjusted for Inflation. ... Financial Statements Do Not Contain Some Intangible Assets. ... Financial Statements Only Cover a Specific Period of Time. ... Financial Statements May Not Be Comparable. ... Financial Statements Could be Wrong Du
What are the limitations of management?
Financial Statements Are Derived from Historical Costs. ... Financial Statements Are Not Adjusted for Inflation. ... Financial Statements Do Not Contain Some Intangible Assets. ... Financial Statements Only Cover a Specific Period of Time. ... Financial Statements May Not Be Comparable. ... Financial Statements Could be Wrong Du
Why are dates important on financial statements?
Why are the dates on financial statements important
What are the elements of financial statements?
Five elements of financial statements are as follows:AssetsLiabilitiesEquityIncomeExpense
What are financial forecasts and financial projections?
Financial forecasts and financial projections are estimated future financial statements of the company that presents its expected financial position. Financial forecasts assume that the company will continue to function in the same manner as it is currently functioning and in financial projections there are few hypothetical assumptions about a company's future course of action.
When does and incurred loss occur?
An incurred loss occurs when there is objective evidence that a loss event has occurred before the financial statements are issued and the amount of the loss can be reasonably estimated. In other words, it happens when a company has experienced a loss or is aware of the likelihood of a loss and can reasonably estimate the amount of that loss.
Have financial statements lost its importance?
No. Financial Statements are the only way to measure financial performance. Perhaps the questioner should elaborate why he/she thinks that financial statements may have lost their relevance.
What are the limitations of financial management?
Financial Statements Are Derived from Historical Costs. ... Financial Statements Are Not Adjusted for Inflation. ... Financial Statements Do Not Contain Some Intangible Assets. ... Financial Statements Only Cover a Specific Period of Time. ... Financial Statements May Not Be Comparable. ... Financial Statements Could be Wrong Du
What is the Measurement of the Elements of Financial Statements?
The elements of financial statements are measured in dollar amounts.
