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Full Disclosure in Financial Reporting

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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

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