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ues dominate panies’ CAP disclosures: impairments, pensions, and ine taxes. As indicated in Exhibit 1, 39 out of 100 panies reported CAPS for impairments of intangibles, 25 reported CAPS for impairments in general, and 14 reported impairments of tangible assets. Another six reported CAPS for the valuation of residual costs of leased assets. With respect to postemployment benefits, 64 panies reported CAPS, and two of those panies reported additional CAPS just for other postemployment benefits. With respect to accounting for ine taxes, 56 panies reported CAPS. The 100 panies reported many additional types of CAPS, as shown in Exhibit 1. Fortyfour panies reported CAPS for contingencies, 32 for revenue recognition, and 32 for baddebt reserves. Valuation of investments and financial instruments was addressed by CAPS for 30 panies, and inventory for 24. Several CAP disclosures were industryspecific. Insurance panies reported claims liabilities as a CAP. Most retailers and retail suppliers addressed purchase and sales allowances (21 CAPS). Oil and gas panies reported oil and gas accounting (four CAPS). and entertainment panies reported capitalization of entertainment assets (three CAPS). The average pany reported CAPS in its MDamp。A. By contrast, a previous study by the Financial Executives Research Foundation reported an average of CAPS per pany (this author, A Review of 2021 MDamp。A Disclosures: Critical Accounting Policies). The fewest CAPS reported were two, by an investment bank, but this pany39。s disclosures were very long and detailed. The highest number of 5 CAPS reported was 11, by a grocery chain. Many panies provided very detailed disclosures. For example, Exhibit 2 shows the Ford Motor Company39。s disclosure about other postemployment benefits (10K/A, fiscal yearend December 31,2021). This disclosure indicates that management believes that other postemployment benefits are a delicate area of accounting for the pany, and that Ford’s ine and financial position are very sensitive to specific assumptions. Ford explains, in detail, the need for estimates and the assumptions used. Furthermore, the sensitivity analysis indicates, for example, that a onepoint decrease in the discount rate would have increased the pany39。s liabilities by $6,330 million and its expenses by $530 million. Exhibit 2 also illustrates many important concepts about reporting such policies. First of all, accountants should write disclosures in plain English, using simple declarative sentences. Use the active voice rather than the passive voice. Avoid plex words when simple ones will suffice. Use formatting tools, such as bullet points, to clarity the structure of ideas. Ideally, CAP disclosures should explain why estimates are necessary, emphasizing the necessary judgments and the inherent uncertainty in each area. For example, according to Best Buy。 “Our impairment loss calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values, including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows” (Form 10K, 2/25/2021). According to United Technologies: In assessing the need for a valuation allowance, we estimate future taxable ine, considering the feasibility of ongoing tax planning strategies and the realizability of tax loss carryforwards. Valuation allowances related to deferred tax assets can be affected by changes to tax laws, changes to statutory tax rates and future taxable ine levels. In the event we were to determine that we would not be able to realize all or a portion of our deferred tax assets in the future, w