Wiley Practitioner's Guide to GAAP 2022

7ASC 235 NOTES TO FINANCIAL STATEMENTS

• Perspective and Issues
  • Subtopic
  • Scope
  • Technical Alert
    • FASB Initiatives
    • SEC Initiative
• Definitions of Terms
• Concepts, Rules, and Examples
  • Accounting Policies
    • Commonly Disclosed Accounting Policies
    • Timing of Adoption Decisions
  • Disclosure Techniques
    • Parenthetical Explanations
    • Notes to Financial Statements
    • Cross-References
    • Valuation Allowances

PERSPECTIVE AND ISSUES

Subtopic

ASC 235, Notes to Financial Statements, contains one subtopic:

• ASC 235-10, Overall, which addresses “the content and usefulness of the accounting policies judged by management to be most appropriate to fairly present the entity's financial statement.”

This Topic does not address specific disclosures. Those are addressed in Topics related to the specific item or transaction. This Topic does, however, list accounting policy disclosures commonly required for:

• Basis of consolidation
• Depreciation methods
• Amortization of intangibles
• Inventory pricing
• Recognition of revenue from contracts with customers
• Recognition of revenue from leasing operations

  (ASC 235-10-50-4)

Scope

ASC 235 applies to all entities and has no scope exceptions.

Technical Alert

Disclosures have drawn the attention of both the FASB and the SEC. As the disclosure requirements have accumulated over the years, there has been a growing concern about information overload and whether more is necessarily better. Both the FASB and the SEC have initiatives to improve disclosures.