Wiley GAAP 2021, 2nd Edition

14ASC 275 RISKS AND UNCERTAINTIES

1. Perspective and Issues
   1. Subtopic
   2. Scope and Scope Exceptions
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Nature of Operations or Activities
   2. Use of Estimates in the Preparation of Financial Statements
   3. Certain Significant Estimates
      1. Examples of Items That May Be Based on Estimates That Are Particularly Sensitive to Change in the Near Term (ASC 275‐10‐50‐15)
   4. Current Vulnerability Due to Concentrations
      1. Examples of Concentrations That Require Disclosure (ASC 275‐10‐50‐18)
   5. Other Sources

PERSPECTIVE AND ISSUES

Subtopic

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 and activities in cases where principal operations have not begun.

This topic recognizes that all entities face risk and uncertainty. This topic is meant to provide users with an early warning about any issues with key information. 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. It looks at risks and uncertainties arising internally as well as those arising from changes ...