SOP 94-6 on risks and uncertainties issued by AcSEC

The Accounting Standards Executive Committee has issued Statement of Position 94-6, Disclosure of Certain Significant Risks and Uncertainties (No. 014880CL). The SOP applies to financial statements prepared in conformity with generally accepted accounting principles applicable to nongovernmental entities, and it applies to all entities that issue such statements. It does not apply to summarized or condensed interim financial statements. The SOP, which includes extensive illustrations of its application, requires reporting entities to include in their financial statements disclosures about the nature of their operations and the use of estimates in the preparation of financial statements. In addition, if specified disclosure criteria are met, it requires entities to make disclosures about: