Section 1: 30–40%1A7
Notes to the Financial Statements
Notes are an integral part of the financial statements — not supplementary. The exam tests what MUST be disclosed, when disclosures are required, and the specific content of high-frequency disclosures like fair value, commitments, contingencies, segments, and subsequent events.
What AICPA Wants You to Know
- 1Identify the required notes under US GAAP and understand the 'full disclosure' principle
- 2Describe the required content of the Summary of Significant Accounting Policies note
- 3Apply fair value disclosure requirements (ASC 820 three-level hierarchy in the notes)
- 4Recognize what triggers required disclosure vs. accrual for contingencies and commitments
- 5Identify when segment information is required and what must be disclosed
- 6Explain subsequent events disclosure requirements