Full Disclosure in Financial Reporting
CHAPTER 24
Full Disclosure in Financial Reporting
ASSIGNMENT CLASSIFICATION TABLE
Topics
Questions
Brief
Exercises Exercises Problems Cases
* 1.
The disclosure principle; type of disclosure. 2, 3, 4, 24
* 2.
Role of notes that accompany financial statements.
1, 5, 6
1, 2
* 3.
Subsequent events.
7
3
1, 2
1
5, 13
* 4.
Segment reporting; diversified firms. 8, 9, 10,
11, 12
4, 5, 6,7
3
2
6, 7, 8
* 5.
Discussion and analysis.
13, 14
* 6.
Interim reporting.
17, 18, 19,
20
* 7.
Audit opinions and fraudulent reporting.
21, 22
* 8.
Earnings forecasts.
15, 16
Interpretation of ratios.
23, 24, 25,
29
*9.
1, 2, 3, 4
1, 2, 3, 4,
5
9, 10
11
4, 5, 6
1
12
14
*10.
Impact of transactions on ratios.
8
4, 5, 6
1
*11.
Liquidity ratios.
8
4, 5, 6
1
*12.
Profitability ratios.
4, 5, 6
1
*13.
Coverage ratios.
4, 5, 6
1
*14.
Activity ratios.
4, 5, 6
1
*15.
Comprehensive ratio problems.
4, 5, 6
3, 5
*16.
Percentage analysis.
26, 27
8, 9, 10
25, 28
3, 4
*This material is dealt with in an Appendix to the chapter.
24-1
ASSIGNMENT CHARACTERISTICS TABLE
Item
Description
Level of
Difficulty
Time
(minutes)
E24-1
E24-2
E24-3
*E24-4
*E24-5
*E24-6
Post-balance-sheet events.
Post-balance-sheet events.
Segmented reporting.
Ratio computation and analysis; liquidity.
Analysis of given ratios.
Ratio analysis.
Moderate
Moderate
Moderate
Simple
Moderate
Moderate
10-15
15-20
5-10
20-30
20-30
30-40
P24-1
P24-2
*P24-3
*P24-4
*P24-5
Subsequent events.
Segmented reporting.
Ratio computations and additional analysis.
Horizontal and vertical analysis.
Dividend policy analysis.
Difficult
Moderate
Moderate
Simple
Difficult
40-50
24-30
35-45
40-60
40-50
Simple
10-20
Moderate
Moderate
Simple
Moderate
Moderate
Simple
Moderate
Simple
Moderate
Moderate
Moderate
Simple
Moderate
20-25
20-25
24-30
20-25
30-35
20-25
24-30
20-25
30-35
24-30
15-20
10-15
24-35
C24-1
C24-2
C24-3
C24-4
C24-5
C24-6
C24-7
C24-8
C24-9
C24-10
C24-11
*C24-12
Full Disclosure in Financial Reporting
ASSIGNMENT CLASSIFICATION TABLE
Topics
Questions
Brief
Exercises Exercises Problems Cases
* 1.
The disclosure principle; type of disclosure. 2, 3, 4, 24
* 2.
Role of notes that accompany financial statements.
1, 5, 6
1, 2
* 3.
Subsequent events.
7
3
1, 2
1
5, 13
* 4.
Segment reporting; diversified firms. 8, 9, 10,
11, 12
4, 5, 6,7
3
2
6, 7, 8
* 5.
Discussion and analysis.
13, 14
* 6.
Interim reporting.
17, 18, 19,
20
* 7.
Audit opinions and fraudulent reporting.
21, 22
* 8.
Earnings forecasts.
15, 16
Interpretation of ratios.
23, 24, 25,
29
*9.
1, 2, 3, 4
1, 2, 3, 4,
5
9, 10
11
4, 5, 6
1
12
14
*10.
Impact of transactions on ratios.
8
4, 5, 6
1
*11.
Liquidity ratios.
8
4, 5, 6
1
*12.
Profitability ratios.
4, 5, 6
1
*13.
Coverage ratios.
4, 5, 6
1
*14.
Activity ratios.
4, 5, 6
1
*15.
Comprehensive ratio problems.
4, 5, 6
3, 5
*16.
Percentage analysis.
26, 27
8, 9, 10
25, 28
3, 4
*This material is dealt with in an Appendix to the chapter.
24-1
ASSIGNMENT CHARACTERISTICS TABLE
Item
Description
Level of
Difficulty
Time
(minutes)
E24-1
E24-2
E24-3
*E24-4
*E24-5
*E24-6
Post-balance-sheet events.
Post-balance-sheet events.
Segmented reporting.
Ratio computation and analysis; liquidity.
Analysis of given ratios.
Ratio analysis.
Moderate
Moderate
Moderate
Simple
Moderate
Moderate
10-15
15-20
5-10
20-30
20-30
30-40
P24-1
P24-2
*P24-3
*P24-4
*P24-5
Subsequent events.
Segmented reporting.
Ratio computations and additional analysis.
Horizontal and vertical analysis.
Dividend policy analysis.
Difficult
Moderate
Moderate
Simple
Difficult
40-50
24-30
35-45
40-60
40-50
Simple
10-20
Moderate
Moderate
Simple
Moderate
Moderate
Simple
Moderate
Simple
Moderate
Moderate
Moderate
Simple
Moderate
20-25
20-25
24-30
20-25
30-35
20-25
24-30
20-25
30-35
24-30
15-20
10-15
24-35
C24-1
C24-2
C24-3
C24-4
C24-5
C24-6
C24-7
C24-8
C24-9
C24-10
C24-11
*C24-12