Can the opening balance sheet be presented in the notes?
Paragraph 1500.04 requires an enterprise to prepare and present an opening balance sheet. A footnote in Section 1521, Balance Sheet, states that some of the line item presentation requirements in paragraph 1521.05 may be satisfied through note disclosure. Some have asked whether this allows for the opening balance sheet to be presented in the notes to the financial statements. The footnote in Section 1521 specifically refers to the line item presentation of assets and liabilities. It does not address presentation of comparative information for an entire financial statement. Paragraph 1400.04 states that fair presentation requires information to be provided in a manner that is clear and understandable. Paragraph 1400.06 states that information should be presented in a manner that enables users of financial information to understand them without undue effort. Paragraph 1400.12 requires that financial statements be prepared on a comparative basis. Users generally find the inclusion of bal
Related Questions
- The balance sheet total in the opening IFRS balance sheet at October 01, 2004 has decreased by only €657 million compared with the US GAAP balance sheet at September 30. What is the reason for this?
- When writing a balance sheet in accounting, does the notes payable go under current or long-term liabilities?
- Can notes be removed from the safe without opening it?
