Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 56

Income statement classification is a frequent topic of SEC comment letters. While SEC rules only apply to public entities, preparers of financial statements can benefit from the findings of SEC reviewers. Topics for comment include:

 Omitting certain required line items.

 Disclosure of policies related to alternative permissible classifications under the guidance in ASC 235‐10.

 Disaggregation of material amounts, especially in the “other expense” line item.

 Separation of product and service revenue if greater than 10%. See the section on aggregation later in this chapter for more information.

 Types of expenses in cost of sales. For example, do the amounts include depreciation and amortization?

 If the entity includes a subtotal for operating income, determine if items are properly included in the operating and nonoperating categories.