Disclosure Checklist - Wiley - kpmg us gaap disclosure checklist

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• (1) Financial statement disclosure checklist 2020
• (2) Kpmg accounting disclosure checklist
• (3) Kpmg financial statement presentation guide
• (4) Financial reporting disclosure checklist

Disclosure
Checklist
APPENDIX:
DISCLOSURE CHECKLIST
This disclosure checklist has been prepared using the accounting and financial reporting
guidance contained in pronouncements up to and including FASB Accounting Standards Updates
No. 2015-16. Disclosure requirements for more recent standards are included in the relevant
chapters of this book. This checklist has been prepared with careful consideration to ensure its
accuracy and completeness. However, a checklist does not substitute for professional knowledge
and judgment. In addition, this checklist focuses primarily on footnote disclosures for financial
statements. For requirements as to the content and format of financial statements themselves,
readers should refer to the applicable chapters of this guide. Financial statement preparers and
auditors using this checklist should recognize their responsibility to determine the adequacy of
disclosures for financial statements. Accordingly, this checklist should be used only as one tool
in meeting these responsibilities.
A. Summary of Significant Accounting Policies
1. Does a note to the financial statements contain a summary of significant accounting
policies?
2. If the organization prepared its financial statements on a comprehensive basis of
accounting other than generally accepted accounting principles (GAAP), was
disclosure made on the basis of presentation and how does that basis differ from
GAAP? (FASB ASC 835-20-55)
3. Does disclosure of significant accounting policies encompass important judgments as
to the appropriateness of principles concerning recognition of revenue, and allocation
of asset costs to current and future periods? (FASB ASC 235-10-50)
4. Has the need been considered for disclosure of the impact of a new FASB Statement
issued but not yet effective where restatement of prior periods will be required?
B. Nonmonetary Transactions
1. Do the notes disclose the nature of these transactions, the basis of accounting used, and
gains or losses recognized on the transfers?
C. Related-Party Transactions
1. Are the following disclosures made of material related-party transactions, other than
compensation agreements, expense allowances, and similar items?
a. The nature of the relationship.
b. A description of the transactions, including transactions to which no amounts or
nominal amounts have been assigned, and such other information to understand the
effects of the transactions on the financial statements.
c. Dollar amounts of the transactions for each period that an operating statement is
presented.
d. Amounts due from related parties as of the date of each balance sheet presented.
(FASB ASC 850-10-50)
2. Is the nature and extent of any leasing transactions with related parties disclosed.
(FASB ASC 840-10-50)
D. Accounting Changes
1. For changes in accounting principles:
a. The nature of and reason for the change in accounting principle, including an
explanation of why the newly adopted accounting principle is preferable.
b. The method of applying the change, and
1. A description of the prior-period information that has been retrospectively
adjusted, if any.
2. The effect of the change on income from continuing operations, the
appropriate captions of changes in the applicable net assets, any other affected
financial statement line item for the current period and any prior periods
retrospectively adjusted. Presentation of the effect on financial statement
subtotals and totals other than income from continuing operations and other
appropriate captions of changes in the applicable net assets is not required.
3. The cumulative effect of the change on the components of net assets in the state
ment of financial position as of the beginning of the earliest period presented.
4. If retrospective application to all prior periods is impracticable, disclosure of the
reasons therefor, and a description of the alternative method used to report the
change.
c. If indirect effects of a change in accounting principle are recognized
1. A description of the indirect effects of a change in accounting principle,
including the amounts that have been recognized in the current period.
2. Unless impracticable, the amount of the total recognized indirect effects of the
accounting change that are attributable to each prior period presented. (FASB
ASC 250-10-50)
2. For changes in accounting estimates, the effect on income from continuing operations
and the other appropriate captions of changes in the applicable net assets of the current
period for a change in estimate that affects several future periods, such as a change in
service lives of depreciable assets. (FASB ASC 250-10-50)
3. For changes in reporting entity, do the financial statements of the period of the change
describe the nature of the change and the reason for it? In addition, the effect of the change
on income before extraordinary items and the appropriate captions of changes in the appli-
cable net assets should be disclosed for all periods presented. (FASB ASC 250-10-50)
4. For correction of errors in previously issued financial statements, has the entity disclosed
that its previously issued financial statements have been restated, along with a description
of the nature of the error? The entity also is required to disclose the following:
a. The effect of the correction on each financial statement line item affected for each
prior period presented.
b. The cumulative effect of the change on the appropriate components of net assets in
the statement of financial position, as of the beginning of the earliest period presented.
c. In addition, the entity should make the disclosures of prior-period adjustments and
restatements. (FASB ASC 250-10-50)


When are financial statements not considered to comply with US GAAP?Like IFRS Standards, financial statements are not considered to comply with US GAAP if they contain material errors (including of disclosures).

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