# ASC 275-10-55: Risks and Uncertainties — Overall — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/275/10/#55-implementation-guidance-and-illustrations) 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): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:37696d8d247e683d563d3e436af2067d07bd46c82c30ad6ab43823319cf65612 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 275-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/275/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [275-10-55-1](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:90837006cac2a3887e352387291ec5fa19db9428759f49438704bedcecdad6e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The kinds of disclosures required by this Subtopic are illustrated in this Section. Each consists of a situation in which the disclosure would likely be made or not made and a discussion of how and why the illustrative disclosure complies with the requirements of this Subtopic or why no disclosure is required by this Subtopic. Some of the concentrations described in the Examples may illustrate more than one of the categories of concentrations given in paragraph [275-10-50-18(a) through (d)](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-18). ##### [275-10-55-2](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:9469e5103c873fb0bbf702d4de4912ee5a0bbe374108bed91fefc368bccbac12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-2](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-2). Conglomerate, Inc. is a U.S.-based multinational entity. Conglomerate's principal lines of business are automotive products, aerospace products and technologies, textiles, and nonprescription health-care products. The principal markets for Conglomerate's automotive and aerospace products and technologies are European- and Far East-based industrial concerns. Textiles are sold primarily to U.S. clothing manufacturers, while nonprescription health-care products are sold to wholesale and retail distributors worldwide. The operations of Conglomerate in any one country are not significant in relation to its overall operations. The following illustrates disclosure of the nature of operations required by this Subtopic. - Conglomerate, Inc. is a multinational manufacturer and engineering concern. The entity's principal lines of business are automotive products, aerospace products and technologies, textiles, and nonprescription health-care products, all of which are about equal in size based on sales. The principal markets for the automotive and aerospace products and technologies are European- and Far East-based industrial concerns. Textiles are sold primarily to domestic clothing manufacturers, while nonprescription health-care products are sold primarily to wholesale and retail distributors worldwide. ##### [275-10-55-3](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:53392a929047251ba193ffc7a38fe0d40a4ff03db29c05ac5fcbbde282c8dfee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This disclosure provides all of the following: 1. a Information necessary for users not familiar with the operations of Conglomerate to identify and consider the broad risks and uncertainties associated with the businesses and markets in which it operates and competes. From the disclosures provided, financial statement users having a general knowledge of business matters should be able to assess that Conglomerate's product lines are subject to different and varied risks. Those financial statement users familiar with the businesses recognize the general risks associated with each of these businesses and their related markets. 2. b Information that facilitates the overall understanding of the financial information presented. This kind of disclosure could provide users with a basis for comparing an entity's financial information with that of competitors or with applicable industry statistics. 3. c Insight into the location of Conglomerate's principal markets, although on a broad scale. Because Conglomerate's markets are so diverse, it likely would not be useful to enumerate the specific locations of the entity's markets. For this reason, the manner in which the information is disclosed in the illustrative disclosure is sufficient to meet the broad objectives of this Subtopic. ##### [275-10-55-3A](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-3A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:1d1b28f880fbc658a4981828df0307657463c6566d658e0bc94cedd6d6157c5c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates one way to comply with the disclosures required by paragraph [275-10-50-2](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-2). NewCompany, Inc. (Company) is a business that has not commenced planned principal operations. The Company is designed to develop and manufacture specialized environmental test equipment for measuring air quality. The Company's first product is a rapid-result test kit to identify certain airborne contaminants in high-risk environments. The Company's activities since inception have consisted principally of acquiring technology patents, raising capital, and performing research and development activities. The following illustrates disclosure required by this Subtopic of the nature of activities for an entity that has not commenced principal operations. - NewCompany, Inc. (Company) is a business whose planned principal operations are the design, engineering, and manufacturing of air quality test equipment. The Company is currently conducting research and development activities to operationalize certain patented technology that the Company owns so it can manufacture rapid-result test kits for certain airborne contaminants in high-risk environments. - During the last year, the Company secured a research facility in Norwalk, Connecticut, which houses all of its employees and research and development activities. The Company also is in the process of raising additional equity capital to support the completion of its development activities to begin manufacturing the test kits as soon as possible. - The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to operationalize the Company's current technology before another company develops similar technology and test kits. ##### [275-10-55-3B](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-3B) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:b24da5c762d53dca486f151bd536ad47aaf58eb6742fc7f037efef668b071822 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure in paragraph [275-10-55-3A](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-3A) provides all of the following: 1. a Information necessary for financial statement users not familiar with the activities of the Company to identify and consider the broad risks and uncertainties associated with businesses that have activities that are similar to those in which the Company is engaged. From the disclosures provided, financial statement users that have a general knowledge of business matters should be able to assess both of the following: 1. 1 That the Company's activities are subject to different and varied risks, including the risk that the entity may be affected by the rapidly changing and intensely competitive technology market 2. 2 That the Company is dependent on additional capital resources for the continuation and expansion of its business activities. 2. b Information that facilitates the overall understanding of the financial information provided. That kind of disclosure could provide users with a basis for understanding the Company's financial information and comparing that information with similar entities or other relevant statistics. ##### [275-10-55-4](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:86b04b3098d8f44292771ebd6e9d867b067f68275abaad35d9a10b66e81f3496 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraphs [275-10-50-2](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-2) and [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Smith Corporation, formerly Smith Munitions Corporation, was founded in 1940. At that time, Smith's principal business was the design and manufacture of artillery ammunition and other explosives. In 1959, commensurate with the evolution of its principal business to the design, engineering, and manufacture of military aircraft for sale to the U.S. government, Smith changed its name to Smith Corporation. Smith has one factory, located in New York. The following illustrates disclosure of the nature of operations required by this Subtopic. - Smith Corporation is engaged principally in the design, engineering, and manufacturing of military aircraft and related peripheral equipment for sale primarily to the U.S. government. ##### [275-10-55-5](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:dd37f122d20676190e1cc1f829a07912ede97948845f50542de4fc509018f1b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This disclosure provides all of the following: 1. a Information needed by users who are not familiar with the operations of Smith Corporation to identify and consider the broad risks and uncertainties faced by all or most entities operating in a specific business or market, which in this case is the defense contracting business. From this disclosure, financial statement users having a general knowledge of business matters should know that Smith's business may be heavily affected by future changes in U.S. defense and foreign policies. 2. b Information that aids in the overall understanding of the other financial information presented. Certain accounting procedures involving estimation may apply only to particular industries or may be relevant in comparing a business entity's financial statements with those of business entities in other industries. 3. c Insight into the location of Smith's principal product markets and information about its current vulnerability due to concentrations. Users would be able to recognize and assess Smith's dependency on sales to the U.S. government (assuming the loss of the government as a customer would result in a [near-term](https://asc.understandingaccounting.org/glossary/n/#near-term "A period of time not to exceed one year from the date of the financial statements.") [severe impact](https://asc.understandingaccounting.org/glossary/s/#severe-impact "(Used in reference to current vulnerability due to certain concentrations.) A significant financially disruptive effect on the normal functioning of an entity. Severe impact is a higher threshold than material. Matters that are important enough to influence a user's decisions are deemed to be material, yet they may not be so significant as to disrupt the normal functioning of the entity. Some events are material to an investor because they might affect the price of an entity's capital stock or its debt securities, but they would not necessarily have a severe impact on (disrupt) the entity itself. The concept of severe impact, however, includes matters that are less than catastrophic. Matters that are catastrophic include, for example, those that would result in bankruptcy.") to Smith Corporation). ##### [275-10-55-6](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:c5208f307d710cd08665125ac7626c4d27e874198e435ae1dbc043851f8dfd0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates disclosure of the pervasiveness of estimates in the financial statements of all reporting entities as required by paragraph [275-10-50-4](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-4). - The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. ##### [275-10-55-7](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:d5ed82a6971a79342306c8cb0129bb3f166b18f4391c0cdf365eb6ad5907fdb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This disclosure is intended to inform users of the inherent uncertainties in measuring assets and liabilities and related revenues and expenses and contingent assets and liabilities, and that subsequent resolution of some matters could differ significantly from the resolution that is currently expected. Such disclosure alerts users that uncertainties are present in the financial statements of all reporting entities. ##### [275-10-55-8](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:2234a94cc89862d1dadb1a25834d83408e403b2b983da19137a51f05e058a5f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Hi-Tech Corporation is a manufacturer of electronic equipment in which integrated circuits are an important component. Substantially all of Hi-Tech's customers require that only those vendors that meet quality criteria be used as sources for integrated circuits. Hi-Tech currently buys all of its integrated circuits from one manufacturer in the Far East, and no long-term supply contract exists. There are only a limited number of manufacturers of these particular integrated circuits, and a change of supplier could significantly disrupt the business due to the time it would take to locate and qualify a new vendor. The following illustrates the disclosure required by this Subtopic. - The entity currently buys all of its integrated circuits, an important component of its products, from one supplier. Although there are a limited number of manufacturers of the particular integrated circuits, management believes that other suppliers could provide similar integrated circuits on comparable terms. A change in suppliers, however, could cause a delay in manufacturing and a possible loss of sales, which would affect operating results adversely. ##### [275-10-55-9](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:9a3c1f4aed71b27ea8ef64639e7a7c623923725a5f9d4fff406cd3fdcafced4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although other sources of supply of this particular kind of integrated circuit are currently available, the limited number of such sources and the time it takes to qualify new vendors makes Hi-Tech currently vulnerable to the risk of a near-term severe impact. Disclosure is required because it is considered at least [reasonably possible](https://asc.understandingaccounting.org/glossary/r/#reasonably-possible "The chance of the future event or events occurring is more than remote but less than likely."), based on information known to management before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25), that the events that could cause the severe impact will occur. ##### [275-10-55-10](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:5e08db635944eac9dedb44a510100314074e1d0f7aa1bcde0e4a300e2aef8605 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Minnesota Company manufactures various products in which wheat is an important raw material. It currently buys 80 percent of its wheat from one supplier, but numerous alternate sources of supply are readily available on comparable terms. ##### [275-10-55-11](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:8db324e2e8fafa9eba60c1165b510b828580106d7a85a59742850f757589b701 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No disclosure is required. ##### [275-10-55-12](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:e2028686227a6a15c065d2116a16fa593d3932129896892f6aeef50978452e0d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The concentration exists at the date of the financial statements, and an inability to obtain wheat could result in a near-term severe impact. No disclosure is required, however, because numerous alternative suppliers are available and, therefore, it is not considered at least reasonably possible that events that could cause a near-term severe impact will occur. ##### [275-10-55-13](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:bd306ed47546e17a54656a35a787ff287a81fb0a6a904b3bf7ebe43d06d5a881 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Felt Pharmaceutical Company is a national pharmaceutical manufacturer headquartered in Atlanta, Georgia. Felt markets a wide range of pharmaceutical products. One of its better-known name-brand products, a significant source of profits and cash flow, is an antibiotic on which there is a patent that will expire in six months. Competitors are preparing to enter the market with generic alternatives when Felt's patent expires, and the concentration therefore has the potential for a severe impact. The following illustrates the disclosure required by this Subtopic. - Felt Pharmaceutical Company is a national pharmaceutical manufacturer with sales throughout the United States. The patent on one of its major products expires next year. This product accounts for approximately one-third \[or "a significant portion"\] of the entity's revenues and a higher percentage of its gross profit. ##### [275-10-55-14](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:f7beeb50987585ae50689a6ac0b54bde12b54f74371274da6fb8604e938b3a56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure focuses on the nature of the business and on Felt's current vulnerability due to a concentration of its patented products. Disclosure is required because the concentration exists at the date of the financial statements, because the effect on Felt's cash flows and profitability of competitors entering the market when the patent expires could be a severe impact, and because it is considered at least reasonably possible that the events that could cause the severe impact will occur in the near term. Because the risk is evident from the description of the concentration, no further explanation of the risk is necessary. ##### [275-10-55-15](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:1ec66939c4f29aa2a22c269fb54f22a2260a2f21f09d4421265a3a9862cff481 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Team Company is a manufacturer of industrial hardware. The contract with the union representing Team's labor force is due to expire in the coming year. Over the past 30 years, Team has, in rare instances, been affected by work stoppages in the course of contract negotiations; the stoppages have always been of short duration, and none has had a significant effect on Team's financial statements. Although management expects that there will initially be some differences between its offer to the union and union demands, based on preliminary discussions with union leaders, management believes it is very unlikely that those differences will result in a protracted conflict. ##### [275-10-55-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:3fe9f5be0c0ba663b92df9e515de72462019527f483c648cce0f8bce37ed24c2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No disclosure is required. ##### [275-10-55-17](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:5bdc5c927b2f317870a68caa51ea061e14f2f15fb85d62e363cbe691c9be9663 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although the concentration of labor exists at the date of the financial statements and it could result in a severe impact in the near term due to the potential of a protracted work stoppage, no disclosure is required because it is not considered at least reasonably possible in the light of past experience and current conditions that a protracted work stoppage will take place. ##### [275-10-55-18](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:3f2b6b22051a28e4ad4c2678090647e58b3228a2a4751e8718795b12528a6236 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the disclosures required by paragraph [275-10-50-16](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-16). Offshore Productions, Inc., a Delaware corporation, designs and manufactures optical lenses, which it markets throughout the United States. Substantially all of its manufacturing operations are carried out in a single facility, which is located in Switzerland and which is owned by Offshore's subsidiary. Offshore does not carry insurance for risks of loss. Offshore's consolidated balance sheet includes $20 million representing the net assets of those operations. The following illustrates the disclosure required by this Subtopic. - Included in the entity's consolidated balance sheet at December 31, 20X4, are the net assets of the entity's manufacturing operations, all of which are located in a single facility in Switzerland and which total approximately $20 million. ##### [275-10-55-19](https://asc.understandingaccounting.org/asc/275/10/#275-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:15.046Z to 2026-09-09T23:22:15.046Z Record version: sha256:ab6896edd01583a14cfd343c5fb8b0f5ab72489a2aaac91a9a4bf6510cf84036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of Offshore's specialized manufacturing capacity is concentrated in a single facility. As noted in paragraph [275-10-50-18](https://asc.understandingaccounting.org/asc/275/10/#275-10-50-18), it is always considered at least reasonably possible that the use of a facility located outside of an entity's home country could be disrupted in the near term. Due to the specialized nature of the assets, it would not be possible to find replacement capacity quickly. Accordingly, loss of the facility could produce a near-term severe impact to Offshore. This disclosure informs financial statement users of that concentration of operations in a particular geographic area and informs them of the risks and uncertainties associated with the concentration. Because the concentration is one of operations located outside of Offshore's home country, the disclosure also sets forth the carrying amount of the net assets, as required by this Subtopic.