CASH AND CASH EQUIVALENTS

[1]. Segregate and classify the amount of restricted cash according to the nature of the restriction.
[2]. Compensating balances disclosed as to their nature and amount (if use of cash on balance sheet is not restricted,
separate presentation on balance sheet is not required).
[3]. Classify cash to be used to settle long-term liability as noncurrent.
[4]. Classify cash to be used to acquire long-lived assets as noncurrent.
[5]. Overdrafts are to be presented as a current liability.
[6]. If uninsured balances are material, concentration of credit risk must be disclosed.
[7]. For SEC, foreign bank balances are to be distinguished.

INVENTORY

[1]. Basis of valuation (cost, lower of cost or market, etc.).

[2]. Cost flow assumptions employed (FIFO, LIFO, etc.).
[3]. Classification (materials, work in process, etc.), with amounts of inventory in each.
[4]. Inventory accounting principles peculiar to a particular industry.
[5]. Pledging of inventories in borrowing agreements.
[6]. Product financing arrangements.
[7]. Accrued net losses on firm purchase commitments.
[8]. Liquidation of LIFO inventories and effects on income.
[9]. Amount of revenue and costs associated with inventory exchanges recognized at fair value.
[10]. Lower of cost or market “losses,” if material.

INVESTMENTS

[1]. For equity and debt securities

a. Classification as a held-to-maturity or an available-for-sale investment.
b. Basis of accounting.
c. Any valuation accounts in stockholders’ equity which reflect unrealized gains and losses and any income
statement effects.
[2]. In the reporting entity’s annual financial statements: For all investments for which there is an unrealized loss
where impairment has not been recognized because the loss is not considered “other than temporary”
[3]. Quantitative disclosure in tabular form and aggregated by category of investment under ASC 320 and ASC 958-
320, and cost-method investments, as of the date of each balance sheet presented: (1) The aggregate amount of
unrealized losses (2) The aggregate related fair value of investments with unrealized losses.
[4]. A narrative as of the date of the most recent balance sheet that provides sufficient information to enable the
reader of the financial statements to understand the disclosures in a. above, as well as both the positive and negative
information that the investor considered in reaching the conclusion that the impairment is not other than temporary.

[5]. For investments valued using the cost method, as of the date of each balance sheet presented in the annual
financial statements: (1) The aggregate carrying amount of all investments valued using the cost method (2) The
aggregate carrying amount of cost-method investments not evaluated for impairment by the investor (3) The fact
that the fair value of a cost-method investment is not estimated by management if no events or changes in
circumstances have been identified that potentially would have a significant adverse effect on the investment’s fair
value, and either:
 The investor determined that it is not practicable to estimate the fair value of the investment, or
 The investor is exempt from estimating fair value.

PROPERTY, PLANT, AND EQUIPMENT

[1]. Classes of assets, including separate identification of:

 Assets held and used.
 Assets held for sale.
 Assets under construction and not in service.
 Idle assets.
[2]. The bases of valuation.
[3]. The methods of computing depreciation.
[4]. The amount of accumulated depreciation either by classes of assets or in total.
[5]. A description of and the amount of any assets pledged as collateral.
[6]. Capitalized interest cost:
 The total amount of interest cost incurred during the period.
 The amount which has been capitalized.
[7]. Estimated costs to complete, for major construction.
[8]. Capitalized preproduction costs related to long-term supply agreements. Aggregate amount of assets
recognized:
 Pursuant to agreements providing for contractual reimbursement of preproduction design and development
costs.
 Molds, dies, and other tools that the supplier owns.
 Molds, dies, and other tools that the supplier does not own.
[9]. Asset retirement obligations (ARO):
 General description of ARO and the related long-lived assets.
  Description of how the fair value of the liability for ARO was determined.
 Funding policy, if any, for ARO.
 Fair value of assets, if any, that are legally restricted to satisfy the liability.
 Reconciliation of the beginning and ending aggregate carrying amount of the
liability separately showing the changes resulting from (1) Additional liability incurred during the current
period (2) Settlements of the liability during the current period (3) Accretion expense (4) Revisions in
expected cash flows. (5) Explanation of any significant changes in ARO not otherwise apparent.
[10]. Impairment of assets classified as held and used:
 Description of impaired assets (asset groups) and situation surrounding the impairment.
 Amount of the impairment loss and the method used to determine fair value.
 If impairment losses are not reported separately or parenthetically, the caption that includes the losses.
 For SEC registrants: the business segment affected.
 Disclosures required for exit and disposal activities, and discontinued operations (including lessee’s early
termination of leases and early termination of other executory contracts).

INTANGIBLE ASSETS

For each major class of intangible asset, for each period-end for which a balance sheet is presented:
 For amortizable intangibles: (1) Gross carrying amount and accumulated amortization, in total and by
major class of intangible asset (2) Amortization expense for the period (3) Estimated aggregate
amortization expenses for each of the five succeeding fiscal years as of the date of the latest balance sheet
presented.
 For intangible assets not subject to amortization, the total carrying amount and the carrying amount for
each major intangible asset class.
 The entity’s accounting policy on the treatment of costs incurred to renew or extend the term of a
recognized intangible asset.
 For intangible assets that have been renewed or extended in the period for which the balance sheet is
presented: (1) For entities that capitalize renewal or extension costs, the total amount of costs incurred in
the period to renew or extend the term of a recognized intangible asset, by major intangible asset class
(2) The weighted-average period prior to the next renewal or extension (both explicit and implicit), by
major intangible asset class.
[5]. For each impairment loss recognized related to an intangible asset (other than goodwill), the following
disclosures are to be made in financial statements that include the period the loss is recognized:
 A description of the impaired intangible asset.
 The facts and circumstances that caused the impairment.
 The amount used to determine fair value.
 The amount of the impairment loss, and the caption of the income statement in which it is included.
[6]. In the period of acquisition either individually or in a group of assets, as part of an asset acquisition transaction
or a business combination, the following information as of acquisition date. This information is to be disclosed
separately for each material business combination or in the aggregate for individually immaterial business
combinations that are material collectively if the aggregate fair values of the intangible assets acquired, other than
goodwill, are significant:
 For each class of intangible asset subject to amortization: (1) The total amount assigned and the amount
assigned to any major intangible asset class (2) The amount of any significant residual value, in total and
by major intangible asset class (3) The weighted-average amortization period, in total and by major
intangible asset class.
 For intangible assets not subject to amortization, the total amount assigned and the amount assigned to any
major intangible asset class.
 For intangible assets with renewal or extension terms, the weighted-average period prior to the next
renewal or extension (both explicit and implicit) by major class of intangible asset.
[7]. For entities subject to segment reporting requirements under ASC 280:
 The disclosures regarding goodwill in H.1. above are to be provided in total and for each reportable
segment along with any significant changes in the allocation of goodwill by reportable segment.
 If any portion of goodwill has not yet been allocated to a reporting unit at the date the financial statements
are issued, disclosure is to be made of that amount and the reasons it has not yet been allocated.
 For any impairment losses recognized with respect to intangible assets other than goodwill, disclose the
reportable segment in which the impaired intangible asset is reported.
[8]. Research and Development (R&D) Activities:
 The amount of R&D assets acquired in a transaction other than a business combination and written off in
the period and the line item in the income statement in which the amounts written off are included.
 The total research and development costs charged to expense for each period for which an income
statement is presented.
 For contractual agreements (1) The terms of significant agreements under the R&D arrangements as of the
date of each balance sheet presented (2) The amount of compensation earned and costs incurred under
contract for each period for which an income statement is presented.
[9]. Deferred charges and other assets:
 Charges, segregated by type.
 Carrying value of capitalized computer software.
[10]. Computer software:
 Capitalized value.
 Amortization.
 Write-downs to realizable value.
[11]. Capitalized direct-response advertising.
[12]. For obligations to service financial assets:
 Amounts of servicing assets/liabilities recognized and amortized.
 Fair value of items (methods and assumptions).
 Risk and amounts of impairment.

ACCOUNTS, NOTES, AND LOANS RECEIVABLE

[1]. Separately report each major category of loans and trade receivables.
[2]. Separately report receivables involving officers, employees, and other related parties and disclose amount and
nature of transactions.
[3]. State the allowance for doubtful accounts or loan losses and the current period provision.
[4]. Disclose any unearned income, unamortized premiums or discounts, and any net unamortized deferred fees and
costs related to loans or trade receivables.
[5]. If unbilled receivables (work in process) are reported, distinguish from billed receivables.
[6]. The recorded investment in loans (and trade receivables, if applicable) on non-accrual status, as of each balance
sheet presented is stated.
[7]. State the recorded investment in loans (and trade receivables, if applicable) on accrual status that are past due
ninety days or more, as of each balance sheet presented.
[8]. The carrying amount of financial instruments that serve as collateral for borrowings.
[9]. The amount of receivables held for sale.
[10]. The amount and nature of receivables sold without recourse.
[11]. The amount of foreclosed or repossessed assets, which can be included in the other assets category if the notes
to the financial statements disclose the amount.
[12]. Credit balances reclassified as a current liability.
[13]. Concentrations of risk.
[14]. Transfers of receivables with recourse.
[15]. For impaired loans, disclose:
 For each balance sheet: (1) Investment in impaired loans (2) Amount of allowance for credit losses
(3) Policy of income recognition for interest.
 For each income statement, disclose the average investment in impaired loans, interest income recognized
and activity in the allowance for credit losses account.
[16]. For noninterest-bearing notes or inappropriate stated interest rates, disclose the discount or premium, the
effective rate of interest and face amount, amortization for the period, and issue costs.
[17]. All other nontrade receivables (e.g., tax refunds, contract claims, etc.) are separately presented.
[18]. The basis for accounting for trade receivables, loans receivable, and lease financings, including those held for
sale.
[19]. The method for recognizing interest income on loan and trade receivables, including related fees and costs,
and the method of amortizing net deferred fees or costs.
[20]. The accounting policies and methodology used to estimate the allowance for doubtful accounts and/or loan
losses, including the factors that influenced management’s judgment (such as existing economic conditions and
historical losses).
[21]. The accounting policies and methodology used to estimate any liability for off-balance-sheet credit losses,
including the factors that influenced management’s judgment.
[22]. The policy for placing loans (and trade receivables, if applicable) on nonaccrual status.
[23]. The policy for recording payments received on loans (and trade receivables, if applicable) that are on
nonaccrual status.
[24]. The policy for resuming interest accruals on loans that are on nonaccrual status.
[25]. The policy for charging off uncollectible trade receivables and loans.
[26]. Whether past due or delinquency status is based on how recently payments have been made or on contractual
terms.
[27]. Whether aggregate or individual asset basis is used in determining the lower of cost or fair value of
nonmortgage loans held for sale.
[28]. The aggregate amount of gains or losses on sales of loans or trade receivables (including the amounts of
adjustments to record receivables held for sale at the lower of cost or fair value) separately presented in the financial
statements or disclosed in the notes.
[29]. The classification and method of accounting for receivables that can be contractually prepaid or otherwise
settled in a way that the entity would not recover substantially all of its recorded investment.
[30]. For certain loans or debt securities acquired in a transfer (per ASC 310-30), the following disclosures are
required:
 How prepayments on loans receivable are accounted for.
 For loans acquired through purchase, including in a business combination, separately for loans accounted
for as debt securities and for those not accounted for as debt securities: (1) The outstanding balance
(undiscounted cash flows owed) (2) The carrying amount at the beginning of the period (3) The carrying
amount at the end of the period (4) A reconciliation of the amount of accretable yield at the beginning of
the period to the amount of accretable yield at the end of the period (5) For loans acquired in the current
period (6) The carrying amount of all loans in a nonaccrual status (7) For loans not accounted for as debt
securities.

OTHER LIABILITIES

For all servicing assets and liabilities:

 The amounts recognized and amortized during the period.
  Fair value of such recognized items including methods and assumptions.
 Risk characteristics of assets used to measure impairment.
 Activity in the valuation allowance for impairment.
[2]. For securitizations accounted for as a sale:
 Accounting policies for initially and subsequently measuring retained interests, including how fair value
was determined.
 A description of the entity’s continuing involvement with the transferred assets.
 The gain or loss from the securitizations.
 The key assumptions used in measuring the fair value of retained interests, both initially and
subsequently.
 A sensitivity analysis or stress test showing the hypothetical effect on the fair value of retained interests for
two or more variations from the expected level for each key assumption used in measuring the fair value of
retained interests.
 Cash flows between the securitization SPE and the entity.
[3]. For securitized assets that the entity continues to service
 The total principal amount outstanding of the securitized assets and any other financial assets that the entity
manages with them, the portion that has been derecognized, and the portion that continues to be recognized
for each category reported on the balance sheet.
 Delinquencies at the end of the period.
 Credit losses, net of recoveries, during the period.
[4]. Other disclosures:
 Security required for repurchase agreements or security lending transactions.
 Fair value of assets transferred, or description and reasons why fair value cannot be measured.
 Any assets pledged as collateral that are not separately reported on the face of the balance sheet.
 Fair value of any assets accepted as collateral, and the amount that has been sold or re-pledged.

INVESTMENTS—EQUITY METHOD DISCLOSURE CHECKLIST

[1]. Name of each investee and the percentage of ownership of common stock.
[2]. Accounting policies with respect to each of the investments.
[3]. Difference between the carrying amount for each investment and its underlying equity in the investee’s net
assets and the accounting treatment of the difference between these amounts.
[4]. For those investments which have a quoted market price, the aggregate value of each investment.
[5]. If investments in investees are considered to have a material effect on the investor’s financial position and
operating results, summarized data for the investor’s assets, liabilities, and results of operations.
[6]. If potential conversion of convertible securities and exercise of options and warrants would have material
effects on the investor’s percentage of the investee.