07/11/2024
2-1 Assignment
Footnotes Short Paper
ACC 317
1. Key Elements of Footnotes
a. Information Included in Footnotes:
i. Explanation of accounting policies and methods used.
ii. Details about significant events or transactions.
iii. Contingent liabilities and commitments.
iv. Details on assets, liabilities, equity, revenues, and expenses.
b. Companies Knowing What information to include:
i. Companies need to follow Generally Accepted Accounting Principles
(GAAP) or International Financial Reporting Standards (IFRS) to
determine what information to include. These standards outline the
required disclosures for financial statement footnotes to ensure
transparency and consistency.
2. Purpose of Footnotes
a. Importance and Usage:
i. Footnotes provide additional context and explanatory information that
complements the numbers presented in the financial statements. They
help users better understand the financial performance and position of
a company by clarifying uncertainties and highlighting key
assumptions.
b. Components Prepared for:
2-1 Assignment
Footnotes Short Paper
ACC 317
1. Key Elements of Footnotes
a. Information Included in Footnotes:
i. Explanation of accounting policies and methods used.
ii. Details about significant events or transactions.
iii. Contingent liabilities and commitments.
iv. Details on assets, liabilities, equity, revenues, and expenses.
b. Companies Knowing What information to include:
i. Companies need to follow Generally Accepted Accounting Principles
(GAAP) or International Financial Reporting Standards (IFRS) to
determine what information to include. These standards outline the
required disclosures for financial statement footnotes to ensure
transparency and consistency.
2. Purpose of Footnotes
a. Importance and Usage:
i. Footnotes provide additional context and explanatory information that
complements the numbers presented in the financial statements. They
help users better understand the financial performance and position of
a company by clarifying uncertainties and highlighting key
assumptions.
b. Components Prepared for:
