Parkman sporting goods is preparing its annual report for its 2021 fiscal year. the company's controller has asked for your in determining how best to disclose information about the following items:

(1) a related party transaction

(2) depreciation metods

(3) allowance for uncollectible account

(4) composition of investment

(5) composition of long-term debt

required: indicate whether the above items should be disclosed (a) in the summary of significant accounting policies note, (b) in a separate disclosure note, or (c) on the face of the balance sheet.

Question

Business

Pierce Maxwell

9 September, 23:31

Parkman sporting goods is preparing its annual report for its 2021 fiscal year. the company's controller has asked for your in determining how best to disclose information about the following items:

(1) a related party transaction

(2) depreciation metods

(3) allowance for uncollectible account

(4) composition of investment

(5) composition of long-term debt

required: indicate whether the above items should be disclosed (a) in the summary of significant accounting policies note, (b) in a separate disclosure note, or (c) on the face of the balance sheet.

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Answers (1)

Know the Answer?

Avery Mccarty · Answer 1

As per the rules for preparation of financial statements by IASB (international accounting standards board) are the answers:

1) a related party transaction (B) in a separate disclosure note,

2) depreciation metods (A) in the summary of significant accounting policies note

3) allowance for uncollectible account (B) in a separate disclosure note

4) composition of investment (B) in a separate disclosure note

5) composition of long-term debt (C) on the face of the balance sheet.