Identify instances where supplemental disclosure in financial statement footnotes may be required
Prompt: The balance sheet, income statement, and statement of cash flows for the typical entity are highly summarized hence the need for supplemental financial statement disclosures. In this discussion, we are going to get a sense of how much financial information is disclosed in the number financial statements vs. the footnotes.
Select two publicly traded for-profit entities for whom inventory is material amount. Go to their most recent annual reports.
In your first discussion post, list the quantity of numbers pages vs. the quantity of footnote pages and include comparative lists of the companies footnotes, including the Footnote 1 subheadings. Compare and contrast the similarities and differences between your two companies footnotes and provide a brief commentary on whether you think the disclosures are excessive, just about right, or too brief. It is best to choose two companies in similar industries (e.g., Ford and GM).
To find a companys annual report, use a search expression like “[company name] investor relations” or “[company name] annual report.”
Parameters: The initial post should be approximately 100 words of narrative accompanied by the lists. Please include complete URLs for your source(s) and include standard Florida Tech guidelines, using APA for citations and references.
