Question

Obtain the relevant authoritative literature on accounting for accounts receivable using the fasb's codification research system at the fasb website (www.fasb.org). what is the specific citation that describes the information about loans and trade receivables that is to be disclosed in the summary of significant accounting policies

Answer 1

Answer:

FASB: Financial Accounting Standards Board (FASB) is the board that governs GAAP by setting guidelines for financial accounting.

Explanation:

Requirement 1:

The specific citation that specifies these disclosure policies is FASB ACS 310-10-50-9: "Receivables—Overall—Disclosure—Accounting Policies for Credit Losses and Doubtful Accounts."

Requirement 2:

FASB ACS 310-10-50-9 — Disclosures:

"In addition to disclosures required by this Subsection and Subtopic 450-20, an entity shall disclose a description of the accounting policies and methodology the entity used to estimate its allowance for loan losses, allowance for doubtful accounts, and any liability for off-balance-sheet credit losses and related charges for loan, trade receivable or other credit losses in the notes to

The financial statements. Such a description shall identify the factors that influenced management's judgment (for example, historical losses and existing economic conditions) and may also include discussion of risk elements relevant to particular categories of financial instruments."