This post provides notes written for a fake annual report.
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A) Prepare simple fictitious financial statements
B) Write notes for the fictitious annual report.
Note 1: Significant Accounting Polices (consisting of at least 10 items)
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 include as "Summary of Significant Accounting Principles" as Note 1.
The notes will then include detailed information about at least 10 different items that are usually contained in the notes to the financial statements.
The student will gain experience in writing business topics and the need to have detailed information provided in the notes to the financial statements.
Determine the detail information that should be included in Notes 2-10+. It is important to understand the difference between information furnished in Note 1 and a separate note detailing the information for the subject of the individual notes.
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Solution Summary
The solution provides notes written as examples for a fictitious annual report. Fourteen sample financial statement notes are included.
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I gave you four extra notes, which are four that are included in almost all financial statements, but weren't included in the list, so you have a total of 14 notes.
Thank you for requesting me. I always appreciate it, and I am always here to help.
Mary
Note 1: Significant Accounting Polices (consisting of at least 10 items)
Notes 2-10+: Consisting of at least the items below.
Inventory
Property, Plant, & Equipment xx
Contingencies and Liabilities xx
Changes in Accounting Principles or Estimates xx
Post Balance Sheet Events xx
Mergers and Acquisitions xx
Lease Obligations xx
EPS xx
Long-Term Debt xx
Employee Pension Obligations xx
(We're going to call our company Green, for simplicity purposes in wording the notes.)
Note 1: Significant Accounting Polices
The financial statements of Green Company have been prepared in accordance with current accounting rules and regulations, and are GAAP compliant. Green Company is a parent company, and all reporting rules and regulations have been adhered to in the reporting of Green Company's subsidiaries. Green Company and all subsidiaries use the same accounting methods. The use of rounding is present throughout the financial statements and attached schedules. Individual columns that do not total within the financial statements and related data are due to differences in rounding. Although the difference is not stated in each table or column, where there is a mismatching of totals, this is the cause, and is permitted for presentation purposes under GAAP.
Note 2: Lease Obligations
Green Company and all subsidiary companies have current lease obligations that are contained in one lease. Green Company recognizes the lease as an operating lease and has accounted for the lease through the appropriate expensing. The lease obligations are recognized in each subsidiary's financial statements as a capital lease and related assets are treated as asset purchases.
Note 3: Property, Plant and Equipment
All property, plant, and ...
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