Assignment:
The objective of this project is to develop notes to the financial statements. This will include determining which items need to be included in the notes, which items need to have additional information provided in the notes, how the notes should be written, and the use of proper grammar in writing the notes. The notes must be written in a professional and business manner in which readers can understand what is being written and what is meant by what is written.
As part of the company’s financial statements, each annual report includes an extensive section of notes to the financial statements.
Must write notes for a fictitious annual report. Numbers, (rounded) can be used by not needed.
The notes will include as "Summary of Significant Accounting Principles" as Note 1.
Note 1: Significant Accounting Polices (consisting of at least 10 items)i.e…
Summary of Significant Accounting Policies
1. Nature of Operations
2. Basis of Presentation
3. Use of Estimates
4. Revenue Recognition
5. Cost of Products Sold
6. Selling, General and Administrative Expense
7. Other Non-Operating Income, Net
8. Currency Translation
9. Cash Flow Presentation
10. Cash Equivalents
11. Investments
12. Inventory Valuation
13. Property, Plant and Equipment
14. Goodwill and Other Intangible Assets
15. Fair Values of Financial Instruments
16. Subsequent Events
17. New Accounting Pronouncements and Policies
18. Fair Value Measurements
19. Disclosures about Derivative Instruments and Hedging Activities
20. Business Combinations and Non-controlling Interests In Consolidated Financial Statements
Notes 2–10+:Consisting of at least the items below.
Inventory
Property, Plant, & Equipment
Contingencies and Liabilities
Changes in Accounting Principles or Estimates
Post Balance Sheet Events
Mergers and Acquisitions
Lease Obligations
EPS
Long-Term Debt
Employee Pension Obligations
The notes will then include detailed information about at least 10 different items that are usually contained in the notes to the financial statements.