NCJ Number
66102
Journal
PRACTICAL ACCOUNTANT Volume: 12 Dated: (MARCH 1979) Pages: 57-65
Date Published
1979
Length
9 pages
Annotation
UNAUDITED STATEMENTS, DEVELOPMENT-STAGE ENTERPRISES, ACCOUNTING POLICIES, ACCOUNTING CHANGES, AND SUBSEQUENT CHANGES ARE EXPLORED AS ACUTE PROBLEM AREAS IN DEVELOPING FINANCIAL DISCLOSURE STATEMENTS.
Abstract
THIS ARTICLE IS INTENDED TO AID THE PRACTITIONER IN IDENTIFYING CERTAIN SITUATIONS WHERE DISCLOSURE IS REQUIRED AND PROVIDE A GUIDE ON HOW CERTAIN DISCLOSURES CAN BE MADE TO COMPLY WITH PROFESSIONAL STANDARDS. BECAUSE OF THE WIDE VARIETY OF ACCOUNTING PRACTICES FOR ENTERPRISES IN THE DEVELOPMENTAL STAGE, THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) IS ADVISED TO HAVE SET STANDARDS AND GUIDELINES TO MAKE THESE PRACTICES MORE UNIFORM. THE BASIC DISCLOSURE RULES FOR DEVELOPMENT-STAGE ENTERPRISES AND GENERAL DISCLOSURES THAT MUST BE MADE BY THESE ENTERPRISES ARE INDICATED. GUIDELINES FOR THE REPORTING OF ACCOUNTING POLICIES USED IN THE FINANCIAL STATEMENTS DISCLOSED ARE ALSO PROVIDED. THE HANDLING OF ACCOUNTING CHANGES IN THE CONTEXT OF A FINANCIAL DISCLOSURE STATEMENT IS DISCUSSED FOR CHANGE IN ACCOUNTING PRINCIPLE, CHANGE IN ACCOUNTING ESTIMATE, A CHANGE IN ENTITY, AND CORRECTION OF AN ERROR. PROCEDURES FOR DEALING WITH EVENTS OR TRANSACTIONS THAT OCCUR AFTER THE BALANCE SHEET DATE BUT BEFORE THE ISSUANCE OF THE FINANCIAL STATEMENTS AND AUDITOR'S REPORT ARE ALSO TREATED. (RCB)