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Determine which major balance sheet information requires supplemental disclosure. Illustrate
your points with examples
Solution
Balance Sheet, also referred to as the statement of financial position:
1.Reports assets, liabilities, and equity at a specific date.
2.Provides information about resources, obligations to creditors, and equity in net
resources.
3.Helps in predicting amounts, timing, and uncertainty of future cash flows.
Both IFRS and GAAP require disclosures about
(1) accounting policies followed,
(2) judgments that management has made in the process of applying the entity

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  • 1. Determine which major balance sheet information requires supplemental disclosure. Illustrate your points with examples Solution Balance Sheet, also referred to as the statement of financial position: 1.Reports assets, liabilities, and equity at a specific date. 2.Provides information about resources, obligations to creditors, and equity in net resources. 3.Helps in predicting amounts, timing, and uncertainty of future cash flows. Both IFRS and GAAP require disclosures about (1) accounting policies followed, (2) judgments that management has made in the process of applying the entity