Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 105

The entity is responsible for adopting and adhering to the highest quality accounting policies possible. In discharging this responsibility, the entity must adopt accounting principles and methods of applying them that are the most appropriate in the circumstances to present fairly in accordance with generally accepted accounting principles (GAAP):

 Financial position,

 Cash flows, and

 Results of operations.(ASC 235‐10‐50‐1)

To achieve this goal, the entity must:

 Identify and describe significant accounting principles followed and methods of applying them that materially affect statements; disclosures should include principles and methods that involve:Selection from acceptable alternatives.Principles and methods peculiar to the entity's industry.Unusual or innovative applications of GAAP.(ASC 235‐10‐50‐1 and 3)

Among others, common accounting policies are:

1 Basis of consolidation

2 Depreciation methods

3 Amortization of intangibles

4 Inventory pricing

5 Recognition of revenue from contracts with customers

6 Recognition of revenue from leasing operations(ASC 235‐10‐50‐4)

Accounting policies disclosures should not duplicate details presented elsewhere. It may be appropriate to refer to related details presented elsewhere in the financial statements. (ASC 235‐10‐50‐5) While recognizing the need for flexibility, the Codification notes that it is preferable to disclose significant accounting policies in a separate summary preceding the notes to financial statements, or as the initial note, under the same or a similar title. (FASB ASC 235‐10‐50‐6)