Wiley GAAP: Financial Statement Disclosure Manual

14ASC 275 RISKS AND UNCERTAINTIES

1. Authoritative Literature
   1. Subtopic
   2. Scope and Scope Exceptions
   3. Key Terms
      1. Near Term
      2. Reasonably Possible
      3. Severe Impact
2. Practice Alert
3. Disclosure Requirements
   1. Nature of Operations
   2. Use of Estimates in the Preparation of Financial Statements
   3. Certain Significant Estimates
      1. Vulnerability Due to Concentrations
4. Disclosure Examples
   1. Example 14.1: Nature of Operations—Business Subject to Regulatory Delays
   2. Example 14.2: Nature of Operations—Highly Competitive Business
   3. Example 14.3: Nature of Operations—Raw Materials and Supplies
   4. Example 14.4: Use of Estimates
   5. Example 14.5: Other Significant Estimates—Valuation Allowances for Deferred Income Tax Assets Based on Future Taxable Income
   6. Example 14.6: Concentration of Volume of Business with One Customer
   7. Example 14.7: Customer Concentration
   8. Example 14.8: Product Concentration
   9. Example 14.9: Concentration of Risk—Major Customers
   10. Example 14.10: Concentration of Volume with Suppliers
   11. Example 14.11: Geographic Concentration
   12. Example 14.12: Concentration of Credit Risks

AUTHORITATIVE LITERATURE

Subtopic

ASU 275, Risks and Uncertainties, contains one Subtopic:

• ASU 275‐10, Overall, which provides guidance on disclosures of risks and uncertainties inherent in entity's operations and activities in cases where principal operations have not begun.

Scope and Scope Exceptions

The guidance applies to all GAAP financial statements, interim and annual, but not to condensed or summarized financial statements. The ...