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The FASB Accounting Standards Codification represents the single source of authoritative U.S.
generally accepted accounting principles.
Required: Determine the specific citation for accounting for the following:
An entity has financial statement and disclosure alternatives that may provide additional useful
information. For example, an entity may highlight the effects of consolidating a limited
partnership by providing consolidating financial statements or separately classifying the assets
and liabilities of the limited partnership(s) on the face of the balance sheet.
Solution
US GAAP- Accounting Policies
Under US GAAP for Accounting policies such disclosure for basis of presentation can be
made.Organization, Consolidation and Presentation of Financial Statements Disclosure and
Significant Accounting PoliciesThe entire disclosure for the organization, consolidation and
basis of presentation of financial statements disclosure, and significant accounting policies of
the reporting entity. May be provided in more than one note to the financial statements, as long
as users are provided with an understanding of (1) the significant judgments and assumptions
made by an enterprise in determining whether it must consolidate a VIE and/or disclose
information about its involvement with a VIE, (2) the nature of restrictions on a consolidated
VIE's assets reported by an enterprise in its statement of financial position, including the
carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an
enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE
affects the enterprise's financial position, financial performance, and cash flows. Describes
procedure if disclosures are provided in more than one note to the financial
statements.Organization, Consolidation, Basis of Presentation, Business Description and
Accounting PoliciesThe entire disclosure for the general note to the financial statements for the
reporting entity which may include, descriptions of the basis of presentation, business
description, significant accounting policies, consolidations, reclassifications, new
pronouncements not yet adopted and changes in accounting principles.

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The FASB Accounting Standards Codification represents the single sou.pdf

  • 1. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required: Determine the specific citation for accounting for the following: An entity has financial statement and disclosure alternatives that may provide additional useful information. For example, an entity may highlight the effects of consolidating a limited partnership by providing consolidating financial statements or separately classifying the assets and liabilities of the limited partnership(s) on the face of the balance sheet. Solution US GAAP- Accounting Policies Under US GAAP for Accounting policies such disclosure for basis of presentation can be made.Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting PoliciesThe entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.Organization, Consolidation, Basis of Presentation, Business Description and Accounting PoliciesThe entire disclosure for the general note to the financial statements for the reporting entity which may include, descriptions of the basis of presentation, business description, significant accounting policies, consolidations, reclassifications, new pronouncements not yet adopted and changes in accounting principles.