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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 745 |
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Failure to disclose contingencies may lead to a material misstatement. If for example, a company was being sued for X number of dollars, and lost the case, there would be a new liability for the amount and if the lawsuit had not been disclosed, the financial information provided on the balance sheet would be incorrect...
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The section disclosing a company’s accounting policies would include information about inventory valuations and which method is used in figuring depreciation One reason this would need to be done is that using or changing to different types of depreciation or inventory valuation will change the numbers on the balance sheet...
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