9th Edition

ISBN: 9781259722660

Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 3, Problem 3.10E

Financial statement disclosures

• LO3–4

The following are typical disclosures that would appear in the notes accompanying financial statements. For each of the items listed, indicate where the disclosure would likely appear—either in (A) the significant accounting policies note or (B) a separate note.

1. Inventory costing method ___A___

2. Information on related party transactions ______

3. Composition of property, plant, and equipment ______

4. Depreciation method ______

5. Subsequent event information ______

6. Measurement basis for certain financial instruments ______

7. Important merger occurring after year-end ______

8. Composition of receivables ______

Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

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Chapter 3, Problem 3.9E

Chapter 3, Problem 3.11E

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Chapter 3 Solutions

Intermediate Accounting

Ch. 3 - Prob. 3.1Q Ch. 3 - Prob. 3.2Q Ch. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4Q Ch. 3 - Prob. 3.5Q Ch. 3 - Prob. 3.6Q Ch. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8Q Ch. 3 - Prob. 3.9Q Ch. 3 - Define the terms paid-in-capital and retained...

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