ASC 235 Notes to Financial Statements

This Topic discusses guidance on the “content and usefulness of disclosure by an entity of the accounting policies judged by management to be most appropriate to fairly present the entity’s financial statements.”

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US GAAP

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10 Overall 910 Contractors—Construction 912 Contractors—Federal Government 915 Development Stage Entities 932 Extractive Activities—Oil and Gas 942 Financial Services—Depository and Lending 944 Financial Services—Insurance 946 Financial Services—Investment Companies 962 Plan Accounting—Defined Contribution Pension Plans 972 Real Estate—Common Interest Realty Associations

ASC 235 notes the following:

The accounting policies of an entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles (GAAP) and that, accordingly, have been adopted for preparing the financial statements.

The accounting policies adopted by an entity can affect significantly the presentation of its financial position, cash flows, and results of operations. Accordingly, the usefulness of financial statements for purposes of making economic decisions about the entity depends significantly upon the user’s understanding of the accounting policies followed by the entity.