Review a recent annual report and consider the following:
Identify all attributes of measurement explicitly identified in the balance sheet and accompanying notes. Notice which items are not specified.
Group the accounting elements by attribute. How thorough is the explanation of measurement in the balance sheet? Identify any unusual assets or liabilities.
How useful is the current noncurrent distinction for assessing liquidity? Based on your review, what level of user sophistication do you think is necessary to understand how the balance sheet numbers have been derived? How useful do you think the balance sheet is?
What are its limitations and how might it be improved, especially from a communication viewpoint?