15 ASC 275 RISKS AND UNCERTAINTIES
PERSPECTIVE AND ISSUES
ASU 275, Risks and Uncertainties, contains one subtopic:
- ASU 275-10, Overall, that provides guidance on disclosures of risks and uncertainties inherent in entity's operations.
This topic recognizes that all businesses face risk and uncertainty. The objective of ASC 275 is to provide guidelines that will enable the preparer to screen the many risks and uncertainties faced by entities and focus on those most useful to the readers of the particular entity's report, those that will enable the readers to assess the future cash flows and result of operations. Thus, the topic focuses on screening criteria for risks and uncertainties and the resulting required disclosures.
Scope and Scope Exceptions
The guidance applies to all GAAP financial statements, interim and annual, but not to condensed or summarized financial statements. The guidance does not apply to risks and uncertainties associated with:
- “Management or key personnel
- Proposed changes ...