[Jsmi77y]

Does anyone have a good resource or study routine/habit that helps them remember what needs disclosed on the face of the F/S vs in the notes.

This is why I’m struggling with Audit too, but want to tack it down for my FAR Thursday exam. I can’t seem to remember as there are tons of things that need disclosed. It just doesn’t stick, even if I have all my MCQ being answered right in these areas (I’ve just memorized the question and answer).

Thanks!

REG - 68 | 71 | 88 | 86
FAR - 72 | 74 | 79
AUD - 66 | 70 | 77
BEC - 62 | 74 | 80

Guess that means I'm a soon-to-be CPA!

[musicamor]

When you say disclosed on the “face of the financials,” what are you referring to? You do not disclose anything on the face of the financials. Your financials have supplementary information on each statement like the amount of allowance for doubtful accounts if you're presenting A/R as net. On the statement of cash flows, you disclose interest and taxes paid in cash, etc.

In the notes, disclosures are made for main categories of the business/financials and any contingencies that are neither estimable nor probable are disclosed in the financials as opposed to accrued in the financials. Do you have a specific example that I can help you with?

Texas CPA - licensed in 2012!!!

[Jsmi77y]

Just ran into this question on Wiley.

Whether recognized or unrecognized in an entity’s financial statements, disclosure of the fair values of the en­tity’s financial instruments is required when

Is it Practicable to Estimate those values?

No

No

Yes

Yes

Aggregated Fair Values are Material to the entity?

No

Yes

No

Yes

My hangup is a bit of everything. For instance, I'd like to understand WHY and also WHAT needs to be disclosed. My guess on this question is Yes/Yes because that generally seems to be the answer on disclosures lol. There's nothing for me to base my assumptions off of when it comes to disclosures. ie, no one chapter really covers it. It's all spread out.

REG - 68 | 71 | 88 | 86
FAR - 72 | 74 | 79
AUD - 66 | 70 | 77
BEC - 62 | 74 | 80

Guess that means I'm a soon-to-be CPA!

[musicamor]

When you answer yes, yes to those questions, then you have a recognizable event; an accrual is necessary. If you answer No, yes; or Yes, no, then disclosure of such an event is necessary in the financials. Does that help?

As far as what gets disclosed, I would suggest you go look at a public company's 10-Q or 10-K. You can get a feel from those SEC filings what is generally disclosed in the financials as far as the footnotes are concerned. You general start about organization and formation, then talk about account principle and estimates, acquisitions during the period, new accounting prounouncements, and so on.

Let me know if I can be of further help.

Texas CPA - licensed in 2012!!!

[Author]

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