# ASC 235-10: Notes to Financial Statements — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/235/10/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:14:08.789Z to 2026-09-09T23:14:35.922Z Record version: sha256:377a008ace55dc638d4bc59a04d4483613a47ef9a27307dca21286420f0b27bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10: Notes to Financial Statements — Overall ### Machine-generated study aids ```json { "summary": "ASC 235-10 requires an entity whose financial statements purport to present fairly financial position, cash flows, and results of operations in accordance with GAAP to include a description of all significant accounting policies as an integral part of those statements (235-10-50-1). \"Accounting policies\" are the specific accounting principles and the methods of applying them that management judges most appropriate in the circumstances (235-10-05-3). The disclosure must cover principles and methods that materially affect the financial statements, especially selections among acceptable alternatives, industry-peculiar methods, and unusual or innovative applications of GAAP (235-10-50-3).", "key_points": [ "The guidance applies to all entities (235-10-15-2), and applies to any basic financial statement issued alone that purports to present fairly in accordance with GAAP (235-10-50-1).", "A description of all significant accounting policies must be included as an integral part of financial statements that are issued or available to be issued (235-10-50-1).", "The requirement does not apply to unaudited interim financial statements issued between annual reporting dates if the entity has not changed its accounting policies since the end of the preceding fiscal year (235-10-50-2).", "Disclosure must identify and describe principles and methods that materially affect financial position, cash flows, or results of operations, including important judgments about revenue recognition and allocation of asset costs, and specifically: selections from existing acceptable alternatives, industry-peculiar principles, and unusual or innovative applications of GAAP (235-10-50-3).", "Commonly required policy disclosures include basis of consolidation, depreciation methods, amortization of intangibles, inventory pricing, revenue recognition from contracts with customers, and revenue recognition from leasing operations (235-10-50-4).", "Policy disclosure shall not duplicate details presented elsewhere in the financial statements and may cross-reference them; changes in accounting policies during the period are described with cross-reference to Topic 250 disclosures (235-10-50-5).", "Format and location are flexible, but disclosure is preferred in a separate summary of significant accounting policies preceding the notes or as the initial note (235-10-50-6); policy disclosures for specific line items are addressed in the related Topics (235-10-05-2)." ], "categories": [ "Disclosure", "Presentation", "Financial statement presentation" ], "audience_level": "introductory", "student_note": "This is the source of the ubiquitous \"Note 1 — Summary of Significant Accounting Policies,\" so it shows up on exams as the general disclosure baseline. A common misunderstanding is thinking the note should repeat detailed balances (inventory composition, PP&E rollforwards) — 235-10-50-5 forbids duplication; the note describes the principles and methods chosen, not the numbers.", "related_topics": [ "250", "270", "855", "205", "275" ], "key_concepts": [ "significant accounting policies", "summary of significant accounting policies", "notes to financial statements", "present fairly in accordance with gaap", "selection among acceptable alternatives", "industry-peculiar accounting methods", "interim financial statements exemption", "cross-reference to related details" ] } ``` Source downloaded (UTC): 2026-09-09T23:14:08.789Z to 2026-09-09T23:14:08.789Z Record version: sha256:dc18d5117d4c35807e9b7e26fa4f70169c0b324d600537bb34c0105762c56c70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/235/10/#00-status) SEC content: no ##### [235-10-00-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:08.789Z to 2026-09-09T23:14:08.789Z Record version: sha256:430828ae353f4368264c1422a29f57333a6164e7b0477f066b17397fa5ca27dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
ContractAddedAccounting Standards Update No. 2014-0905/28/2014
CustomerAddedAccounting Standards Update No. 2014-0905/28/2014
Financial InstrumentAmendedAccounting Standards Update No. 2024-0203/29/2024
RevenueAddedAccounting Standards Update No. 2014-0905/28/2014
235-10-50-4AmendedAccounting Standards Update No. 2014-0905/28/2014
235-10-50-6AmendedMaintenance Update 2016-11 (PDF)06/27/2016
Source downloaded (UTC): 2026-09-09T23:14:12.457Z to 2026-09-09T23:14:12.457Z Record version: sha256:f212faaccec9869c959922e500703dd2338dc039f98c9bed8d4f30a3415bfeb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/235/10/#05-overview-and-background) SEC content: no ##### [235-10-05-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:12.457Z to 2026-09-09T23:14:12.457Z Record version: sha256:ea4c9fa6e05dd615138303000fffd08281367b31dce4ded38c867350442d6174 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Notes to Financial Statements Topic addresses the content and usefulness of disclosure by an entity of the accounting policies judged by management to be most appropriate to fairly present the entity's financial statements. ##### [235-10-05-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:12.457Z to 2026-09-09T23:14:12.457Z Record version: sha256:8de298aff000e8ff14fefbc1992edba26cd59caa78e86a353ad800b8fb1fa4fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of accounting policies related to specific financial statement line items are addressed in the related Topics. #### Importance of Accounting Policies Disclosure ##### [235-10-05-3](https://asc.understandingaccounting.org/asc/235/10/#235-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:12.457Z to 2026-09-09T23:14:12.457Z Record version: sha256:693bbaadf2e60df20778418e3f2ddd359422b519d9ee28560bfbe0583476519e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting policies of an entity are the specific accounting principles and the methods of applying those principles that are judged by the management of the entity to be the most appropriate in the circumstances to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles (GAAP) and that, accordingly, have been adopted for preparing the financial statements. ##### [235-10-05-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:12.457Z to 2026-09-09T23:14:12.457Z Record version: sha256:d1586c3a74d2931a71675b04e3f788a582046e571659078641b7e40f6793dada Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accounting policies adopted by an entity can affect significantly the presentation of its financial position, cash flows, and results of operations. Accordingly, the usefulness of financial statements for purposes of making economic decisions about the entity depends significantly upon the user's understanding of the accounting policies followed by the entity. Source downloaded (UTC): 2026-09-09T23:14:15.992Z to 2026-09-09T23:14:15.992Z Record version: sha256:f4957e0099f58f15f888ea5f1b3d2ed13910056b5f2c8a22e84394d3d729419c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/235/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [235-10-15-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:15.992Z to 2026-09-09T23:14:15.992Z Record version: sha256:f0d5b0b0d5ec8e5b8ac2eefb55325bb7e6c961ff7615e540912f90b6e02019ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the Notes to Financial Statements Topic. #### Entities ##### [235-10-15-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:15.992Z to 2026-09-09T23:14:15.992Z Record version: sha256:f6ffb28c587aa68dcf71f90b67b5e1f918843c7f11d26760940afe4af8afb9a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Notes to Financial Statements Topic applies to all entities. Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:b0011c1ef6dfaf92817cfc1d0da7a6e080c520219978e1d98c885c604521475f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/235/10/#50-disclosure) SEC content: no #### Accounting Policies Disclosure ##### [235-10-50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:db2d4459749e54795415da0a6ce920eb0d9b7b539b6ddf34b061b4b99de35504 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about the accounting policies adopted by an entity is essential for financial statement users. When financial statements that are issued or are available to be issued (as discussed in Section 855-10-25) purport to present fairly financial position, cash flows, and results of operations in accordance with generally accepted accounting principles (GAAP), a description of all significant accounting policies of the entity shall be included as an integral part of the financial statements. In circumstances where it may be appropriate to issue one or more of the basic financial statements without the others, purporting to present fairly the information given in accordance with GAAP, statements so presented also shall include disclosure of the pertinent accounting policies. #### Accounting Policies Disclosure in Interim Periods ##### [235-10-50-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:a2a13e5f07c88667e175f86e1891ad52863826e21e84cc646e3d8f6037a8c548 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provisions of paragraph [235-10-50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1) are not intended to apply to unaudited financial statements issued as of a date between annual reporting dates (for example, each quarter) if the reporting entity has not changed its accounting policies since the end of its preceding fiscal year. #### What to Disclose ##### [235-10-50-3](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:7251c0272ad6b63b0fe1590a25e062eed75aa6b1978648b2e9ec28562e85e6ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of accounting policies shall identify and describe the accounting principles followed by the entity and the methods of applying those principles that materially affect the determination of financial position, cash flows, or results of operations. In general, the disclosure shall encompass important judgments as to appropriateness of principles relating to recognition of revenue and allocation of asset costs to current and future periods; in particular, it shall encompass those accounting principles and methods that involve any of the following: 1. a A selection from existing acceptable alternatives 2. b Principles and methods peculiar to the industry in which the entity operates, even if such principles and methods are predominantly followed in that industry 3. c Unusual or innovative applications of GAAP. #### Examples of Disclosures ##### [235-10-50-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:ee1133a77690ee1abb3c3d2c8e96faaed2550d0871cdf5365e7df658e3712fa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of disclosures by an entity commonly required with respect to accounting policies would include, among others, those relating to the following: 1. a Basis of consolidation 2. b Depreciation methods 3. c Amortization of intangibles 4. d Inventory pricing 5. e Recognition of [revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with [customers](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.") 6. f Recognition of revenue from leasing operations. #### Avoid Duplicate Details of Disclosures ##### [235-10-50-5](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:4ea66ed74104a1a7ad83d02ef384ee0056558e531a25f518bb18939097416ee3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial statement disclosure of accounting policies shall not duplicate details (for example, composition of inventories or of plant assets) presented elsewhere as part of the financial statements. In some cases, the disclosure of accounting policies shall refer to related details presented elsewhere as part of the financial statements; for example, changes in accounting policies during the period shall be described with cross-reference to the disclosure required by Topic 250. #### Format ##### [235-10-50-6](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:22.348Z to 2026-09-09T23:14:22.348Z Record version: sha256:1ec57f0d0d44caf992b7b8ff2c07f4fb24332ed5a361869fe4f17a31b199d705 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic recognizes the need for flexibility in matters of format (including the location) of disclosure of accounting policies provided that the entity identifies and describes its significant accounting policies as an integral part of its financial statements in accordance with the provisions of this Subtopic. Disclosure is preferred in a separate summary of significant accounting policies preceding the notes to financial statements (notes), or as the initial note, under the same or a similar title. Source downloaded (UTC): 2026-09-09T23:14:28.275Z to 2026-09-09T23:14:28.275Z Record version: sha256:aa6744bb085907b1b6e501dd81769261e60b31fe2807430922e4b81b7918e746 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/235/10/#sec-00-status) SEC content: yes ##### [235-10-S00-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:28.275Z to 2026-09-09T23:14:28.275Z Record version: sha256:d71997a44f2330687acfe425d65edcb67d9650e4364ee28522f0b33e184b7fdc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
235-10-S99-1 through S99-4
AmendedAccounting Standards Update No. 2019-0707/26/2019
235-10-S99-1AmendedAccounting Standards Update No. 2012-0308/27/2012
235-10-S99-1AmendedAccounting Standards Update No. 2010-2108/02/2010
235-10-S99-1AmendedAccounting Standards Update No. 2009-0709/15/2009
235-10-S99-5AmendedAccounting Standards Update No. 2012-0308/27/2012
Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:0a2bd1fdc590cb212505ab2f57d5086078138f7396654fb737b491ee878a06b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/235/10/#sec-50-disclosure) SEC content: yes #### Required General Disclosures ##### [235-10-S50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:58bbfc37e47deadd6bcbafbd6d25bb65f20e361f00b054630d3543898d9856af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1), Regulation S-X Rule 4-08, for requirements on disclosures to be included in the notes to financial statements. #### Foreign Private Issuers ##### [235-10-S50-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:c2912b7ad30850f5eb09b9729aad9970064c5625d98813d0262ac5c57ba3d05e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-5](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-5), SAB Topic 1.D.1, for SEC Staff views on disclosures to be provided by foreign private issuers. #### Disclosures from Supplemental Schedules ##### [235-10-S50-3](https://asc.understandingaccounting.org/asc/235/10/#235-10-S50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:ec43ec5cc0a902eabfbf92d6b377bffb44f64881a7090f3f9e43b53f2e96a2b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-2), Regulation S-X Rule 12-01, for the references to the required supplemental schedules to be considered. ##### [235-10-S50-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-S50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:108b9096749d4869d5a5e0a16e7af3f45dab99a48fdac9cbea64444140f110d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-3](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-3), Regulation S-X Rule 12-04, for the disclosure requirements pertaining to condensed financial information of the registrant in situations where such disclosures are required. ##### [235-10-S50-5](https://asc.understandingaccounting.org/asc/235/10/#235-10-S50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:29.969Z to 2026-09-09T23:14:29.969Z Record version: sha256:49fd9942a6e6d5289707c86ae391e0a26df1988033a1015f33207e80643e8fb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [235-10-S99-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-4), Regulation S-X Rule 12-09, for the requirements for the schedule of valuation and qualifying accounts. Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:b50ef8b99af36630c5e4c043290091cb545da0490477f83c7f86e8945d22441b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 235-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/235/10/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [235-10-S99-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:17db1c52d3f87cfea8796245685a09684a4a9076db08f98342a158aef3c2af58 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 4-08, General Notes to Financial Statements (17 CFR 210.4-08). - If applicable to the person for which the financial statements are filed, the following shall be set forth on the face of the appropriate statement or in appropriately captioned notes. The information shall be provided for each statement required to be filed, except that the information required by paragraphs (b), (c), (d), (e) and (f) of this section shall be provided as of the most recent audited balance sheet being filed and for paragraph (j) of this section as specified therein. When specific statements are presented separately, the pertinent notes shall accompany such statements unless cross-referencing is appropriate. - (a) \[Reserved\] - (b) Assets subject to lien. Assets mortgaged, pledged, or otherwise subject to lien, and the approximate amounts thereof, shall be designated and the obligations collateralized briefly identified. - (c) Defaults. The facts and amounts concerning any default in principal, interest, sinking fund, or redemption provisions with respect to any issue of securities or credit agreements, or any breach of covenant of a related indenture or agreement, which default or breach existed at the date of the most recent balance sheet being filed and which has not been subsequently cured, shall be stated in the notes to the financial statements. If a default or breach exists but acceleration of the obligation has been waived for a stated period of time beyond the date of the most recent balance sheet being filed, state the amount of the obligation and the period of the waiver. - (d) Preferred shares. Aggregate preferences on involuntary liquidation, if other than par or stated value, shall be shown parenthetically in the equity section of the balance sheet. - (e) Restrictions which limit the payment of dividends by the registrant. - (1) Describe the most significant restrictions on the payment of dividends by the registrant, indicating their sources, their pertinent provisions, and the amount of retained earnings or net income restricted or free of restrictions. - (2) Disclose the amount of consolidated retained earnings which represents undistributed earnings of 50 percent or less owned persons accounted for by the equity method. - (3) The disclosures in paragraphs (e)(3)(i) and (ii) of this section shall be provided when material. - (i) Describe the nature of any restrictions on the ability of consolidated subsidiaries and unconsolidated subsidiaries to transfer funds to the registrant in the form of cash dividends, loans or advances (i. e., borrowing arrangements, regulatory restraints, foreign government, etc.) - (ii) Disclose separately the amounts of such restricted net assets for unconsolidated subsidiaries and consolidated subsidiaries as of the end of the most recently completed fiscal year. - (f) Significant changes in bonds, mortgages and similar debt. Any significant changes in the authorized amounts of bonds, mortgages and similar debt since the date of the latest balance sheet being filed for a particular person or group shall be stated. - (g) Summarized financial information of subsidiaries not consolidated and 50 percent or less owned persons. - (1) The summarized information as to assets, liabilities and results of operations as detailed in § 210.1-02(bb) shall be presented in notes to the financial statements on an individual or group basis for: - (i) Subsidiaries not consolidated; or - (ii) For 50 percent or less owned persons accounted for by the equity method by the registrant or by a subsidiary of the registrant, if the criteria in § 210.1-02(w) for a significant subsidiary are met: - (A) Individually by any subsidiary not consolidated or any 50% or less owned person; or - (B) On an aggregated basis by any combination of such subsidiaries and persons. - (2) Summarized financial information shall be presented insofar as is practicable as of the same dates and for the same periods as the audited consolidated financial statements provided and shall include the disclosures prescribed by § 210.1-02(bb). Summarized information of subsidiaries not consolidated shall not be combined for disclosure purposes with the summarized information of 50 percent or less owned persons. - (h) Income tax expense. - (1) Disclosure shall be made in the statement of comprehensive income or a note thereto, of the components of income (loss) before income tax expense (benefit) as either domestic or foreign. - NOTE 1 to Paragraph (h)(1): Amounts applicable to United States Federal income taxes, to foreign income taxes and the other income taxes shall be stated separately for each major component. Amounts applicable to foreign income (loss) and amounts applicable to foreign or other income taxes which are less than five percent of the total of income before taxes or the component of tax expense, respectively, need not be separately disclosed. For purposes of this rule, foreign income (loss) is defined as income (loss) generated from a registrant's foreign operations, i. e., operations that are _located outside_ of the registrant's home country. - (2) In the reconciliation between the amount of reported total income tax expense (benefit) and the amount computed by multiplying the income (loss) before tax by the applicable statutory Federal income tax rate if no individual reconciling item amounts to more than five percent of the amount computed by multiplying the income before tax by the applicable statutory Federal income tax rate, and the total difference to be reconciled is less than five percent of such computed amount, no reconciliation need be provided unless it would be significant in appraising the trend of earnings. Reconciling items that are individually less than five percent of the computed amount may be aggregated in the reconciliation. Where the reporting person is a foreign entity, the income tax rate in that person's country of domicile should normally be used in making the above computation, but different rates should not be used for subsidiaries or other segments of a reporting entity. When the rate used by a reporting person is other than the United States Federal corporate income tax rate, the rate used and the basis for using such rate shall be disclosed. - - (4) Price at which warrant or right is exercisable. - (i)-(j) \[Reserved\] - (k) Related party transactions that affect the financial statements. - (1) Amounts of related party transactions should be stated on the face of the balance sheet, statement of comprehensive income, or statement of cash flows. - (2) In cases where separate financial statements are presented for the registrant, certain investees, or subsidiaries, any intercompany profits or losses resulting from transactions with related parties and the effects thereof shall be disclosed. - (l) \[Reserved\] - (m) Repurchase and reverse repurchase agreements. - (1) Repurchase agreements (assets sold under agreements to repurchase). - (i) If, as of the most recent balance sheet date, the carrying amount (or market value, if higher than the carrying amount or if there is no carrying amount) of the securities or other assets sold under agreements to repurchase (repurchase agreements) exceeds 10% of total assets, disclose separately in the balance sheet the aggregate amount of liabilities incurred pursuant to repurchase agreements including accrued interest payable thereon. - (ii)(A) If, as of the most recent balance sheet date, the carrying amount (or market value, if higher than the carrying amount) of securities or other assets sold under repurchase agreements, other than securities or assets specified in paragraph (m)(1)(ii)(B) of this section, exceeds 10% of total assets, disclose in an appropriately captioned footnote containing a tabular presentation, segregated as to type of such securities or assets sold under agreements to repurchase (e. g., U.S. Treasury obligations, U.S. Government agency obligations and loans), the following information as of the balance sheet date for each such agreement or group of agreements (other than agreements involving securities or assets specified in paragraph (m)(1)(ii)(B) of this section) maturing (1) overnight; (2) term up to 30 days; (3) term of 30 to 90 days; (4) term over 90 days and (5) demand: - (i) The carrying amount and market value of the assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit under the repurchase agreements; and - (ii) The repurchase liability associated with such transaction or group of transactions and the interest rate(s) thereon. - (B) For purposes of paragraph (m)(1)(ii)(A) of this section only, do not include securities or other assets for which unrealized changes in market value are reported in current income or which have been obtained under reverse repurchase agreements. - (iii) If, as of the most recent balance sheet date, the amount at risk under repurchase agreements with any individual counterparty or group of related counterparties exceeds 10% of stockholders' equity (or in the case of investment companies, net asset value), disclose the name of each such counterparty or group of related counterparties, the amount at risk with each, and the weighted average maturity of the repurchase agreements with each. The amount at risk under repurchase agreements is defined as the excess of carrying amount (or market value, if higher than the carrying amount or if there is no carrying amount) of the securities or other assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability (adjusted for accrued interest). (Cash deposits in connection with repurchase agreements shall not be reported as unrestricted cash pursuant to rule 5-02.1.) - (2) Reverse repurchase agreements (assets purchased under agreements to resell). - (i) If, as of the most recent balance sheet date, the aggregate carrying amount of "reverse repurchase agreements" (securities or other assets purchased under agreements to resell) exceeds 10% of total assets: - (A) Disclose separately such amount in the balance sheet; and - (B) Disclose in an appropriately captioned footnote: - (1) The registrant's policy with regard to taking possession of securities or other assets purchased under agreements to resell; and - (2) Whether or not there are any provisions to ensure that the market value of the underlying assets remains sufficient to protect the registrant in the event of default by the counterparty and if so, the nature of those provisions. - (ii) If, as of the most recent balance sheet date, the amount at risk under reverse repurchase agreements with any individual counterparty or group of related counterparties exceeds 10% of stockholders' equity (or in the case of investment companies, net asset value), disclose the name of each such counterparty or group of related counterparties, the amount at risk with each, and the weighted average maturity of the reverse repurchase agreements with each. The amount at risk under reverse repurchase agreements is defined as the excess of the carrying amount of the reverse repurchase agreements over the market value of assets delivered pursuant to the agreements by the counterparty to the registrant (or to a third party agent that has affirmatively agreed to act on behalf of the registrant) and not returned to the counterparty, except in exchange for their approximate market value in a separate transaction. - (n) Accounting policies for certain derivative instruments. Disclosures regarding accounting policies shall include to the extent material where in the statement of cash flows derivative financial instruments, and their related gains and losses, as defined by U.S. generally accepted accounting principles are reported. - \[45 FR 63669, Sept. 25, 1980, as amended at 46 FR 56179, Nov. 16, 1981; 50 FR 25215, June 18, 1985; 50 FR 49532, Dec. 3, 1985; 51 FR 3770, Jan. 30, 1986; 57 FR 45293, Oct. 1, 1992; 59 FR 65636, Dec. 20, 1994; 62 FR 6063, Feb. 10, 1997; 74 FR 18615, Apr. 23, 2009; 76 FR 50119, Aug. 12, 2011; 83 FR 50200, Oct. 4, 2018\] ##### [235-10-S99-2](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:ce2b60ca8278e27661ab8c6b4bdc7264697160b1d4e1d78d4ca0915fc6fc1b62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-01, Application of §§210.12-01 to 210.12-29 (17 CFR 210.12-01). - These sections prescribe the form and content of the schedules required by §§ 210.5-04, 210.6-10, 210.6A-05, and 210.7-05. - \[59 FR 65637, Dec. 20, 1994\] ##### [235-10-S99-3](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:d6abba06e74c8d0dcbaa467c5c2f31ecb478debc03e9726bde1e8aae5b81b405 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-04, Condensed Financial Information of Registrant (17 CFR 210.12-04). - (a) Provide condensed financial information as to financial position, cash flows and results of operations of the registrant as of the same dates and for the same periods for which audited consolidated financial statements are required. The financial information required need not be presented in greater detail than is required for condensed statements by § 210.10-01(a)(2), (3) and (4). Detailed footnote disclosure which would normally be included with complete financial statements may be omitted with the exception of disclosures regarding material contingencies, long-term obligations and guarantees. Descriptions of significant provisions of the registrant's long-term obligations, mandatory dividend or redemption requirements of redeemable stocks, and guarantees of the registrant shall be provided along with a five-year schedule of maturities of debt. If the material contingencies, long-term obligations, redeemable stock requirements and guarantees of the registrant have been separately disclosed in the consolidated statements, they need not be repeated in this schedule. - (b) Disclose separately the amounts of cash dividends paid to the registrant for each of the last three fiscal years by consolidated subsidiaries, unconsolidated subsidiaries and 50 percent or less owned persons accounted for by the equity method, respectively. \[46 FR 56180, Nov. 16, 1981, as amended at 57 FR 45293, Oct. 1, 1992\] ##### [235-10-S99-4](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:5db7fef3e75d51a11441e8f916d6d6c2548d17eaa3aa41f9e346ce009ed093f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-09, Valuation and Qualifying Accounts (17 CFR 210.12-09). - ![](https://asc.understandingaccounting.org/asc-img/GUID-CFA46380-A044-422B-8088-30F0263E9348-low.gif) Reg. § 210.12-09 Valuation and Qualifying Accounts Column A Column B Column C-Additions Column D Column E Description1 Balance at beginning of period " (1) Charged to costs and expenses" " (2) Charged to other accounts— describe" Deductions— describe "Balance at end of period" 1 "List, by major classes, all valuation and qualifying accounts and reserves not included in specific schedules. Identify each class of valuation and qualifying accounts and reserves by descriptive title. Group (a) those valuation and qualifying accounts which are deducted in the balance sheet from the assets to which they apply and (b) those reserves which support the balance sheet caption, Reserves.Valuation and qualifying accounts and reserves as to which the additions, deductions, and balances were not individually significant may be grouped in one total and in such case the information called for under columns C and D need not be given." \[37 FR 14602, July 21, 1972. Redesignated and amended at 45 FR 63679, Sept. 25, 1980\] #### SEC Staff Guidance ##### [235-10-S99-5](https://asc.understandingaccounting.org/asc/235/10/#235-10-S99-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:14:35.922Z to 2026-09-09T23:14:35.922Z Record version: sha256:c6f6b2424e686665d2978507e76082adedb7f1118d7f96714834677f479f4398 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 1.D.1, Disclosures Required of Companies Complying with Item 17 of Form 20-F. - Facts: A foreign private issuer may use Form 20-F as a registration statement under section 12 or as an annual report under section 13(a) or 15(d) of the Exchange Act. The registrant must furnish the financial statements specified in Item 17 of that form (Effective for fiscal years ending on or after December 15, 2011, compliance with Item 18 rather than Item 17 will be required for all issuer financial statements in all Securities Act registration statements, Exchange Act registration statements on Form 20-F, and annual reports on Form 20-F. See SEC Release No. 33-8959). However, in certain circumstances, Form F-3 requires that the annual report include financial statements complying with Item 18 of the form. Also, financial statements complying with Item 18 are required for registration of securities under the Securities Act in most circumstances. Item 17 permits the registrant to use its financial statements that are prepared on a comprehensive basis other than U.S. GAAP, but requires quantification of the material differences in the principles, practices and methods of accounting for any basis other than International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). An issuer complying with Item 18, other than those using IFRS as issued by the IASB, must satisfy the requirements of Item 17 and also must provide all other information required by U.S. GAAP and Regulation S-X. - Question: Assuming that the registrant's financial statements include a discussion of material variances from U.S. GAAP along with quantitative reconciliations of net income and material balance sheet items, does Item 17 of Form 20-F require other disclosures in addition to those prescribed by the standards and practices which comprise the comprehensive basis on which the registrant's primary financial statements are prepared? - Interpretive Response: No. The distinction between Items 17 and 18 is premised on a classification of the requirements of U.S. GAAP and Regulation S-X into those that specify the methods of measuring the amounts shown on the face of the financial statements and those prescribing disclosures that explain, modify or supplement the accounting measurements. Disclosures required by U.S. GAAP but not required under the foreign GAAP on which the financial statements are prepared need not be furnished pursuant to Item 17. - Notwithstanding the absence of a requirement for certain disclosures within the body of the financial statements, some matters routinely disclosed pursuant to U.S. GAAP may rise to a level of materiality such that their disclosure is required by Item 5 (Management's Discussion and Analysis) of Form 20-F. Among other things, this item calls for a discussion of any known trends, demands, commitments, events or uncertainties that are reasonably likely to affect liquidity, capital resources or the results of operations in a material way. Also, instruction 2 of this item requires "a discussion of any aspects of the differences between foreign and U.S. GAAP, not discussed in the reconciliation, that the registrant believes is necessary for an understanding of the financial statements as a whole." Matters that may warrant discussion in response to Item 5 include the following: - material undisclosed uncertainties (such as reasonably possible loss contingencies), commitments (such as those arising from leases), and credit risk exposures and concentrations; - material unrecognized obligations (such as pension obligations); - material changes in estimates and accounting methods, and other factors or events affecting comparability; - defaults on debt and material restrictions on dividends or other legal constraints on the registrant's use of its assets; - material changes in the relative amounts of constituent elements comprising line items presented on the face of the financial statements; - significant terms of financings which would reveal material cash requirements or constraints; - material subsequent events, such as events that affect the recoverability of recorded assets; - material related party transactions (as addressed by FASB ASC Topic 850, Related Party Disclosures) that may affect the terms under which material revenues or expenses are recorded; and - significant accounting policies and measurement assumptions not disclosed in the financial statements, including methods of costing inventory, recognizing revenues, and recording and amortizing assets, which may bear upon an understanding of operating trends or financial condition.