Page 436 - Auditing Standards
P. 436
As of December 15, 2017
Management considers We consider the decline in value of debt or equity
the decline in value of securities classified as either available-for-sale or
debt or equity securities held-to-maturity to be temporary.
to be temporary.
Management has The methods and significant assumptions used to
determined the fair value determine fair values of financial instruments are as
of significant financial follows: [describe methods and significant
instruments that do not assumptions used to determine fair values of
have readily financial instruments]. The methods and significant
determinable market assumptions used result in a measure of fair value
values. appropriate for financial statement measurement and
disclosure purposes.
There are financial The following information about financial instruments
instruments with off- with off-balance-sheet risk and financial instruments
balance-sheet risk and with concentrations of credit risk has been properly
financial instruments with disclosed in the financial statements:
concentrations of credit
risk. 1. The extent, nature, and terms of financial
instruments with off-balance-sheet risk
2. The amount of credit risk of financial instruments
with off-balance-sheet risk and information about
the collateral supporting such financial instruments
3. Significant concentrations of credit risk arising
from all financial instruments and information about
the collateral supporting such financial instruments
Receivables Receivables recorded in the financial statements
Receivables have been represent valid claims against debtors for sales or
recorded in the financial other charges arising on or before the balance-sheet
statements. date and have been appropriately reduced to their
estimated net realizable value.
Inventories Provision has been made to reduce excess or
Excess or obsolete obsolete inventories to their estimated net realizable
inventories exist. value.
Investments [For investments in common stock that are either
433
