第24章1330-1348页.pdf

1460T_c24.qxd 1/22/06 04:16 am Page 1330 1330 • Chapter 24 Full Disclosure in Financial Reporting reconciliation of international accounting reports to U.S. GAAP. The current reconciliation re- quirements are designed to make financial statements prepared under non-U.S. GAAP more comparable to those prepared under U.S. GAAP. Note: All asterisked Questions, Brief Exercises, Exercises, Problems, and Concepts for Analysis relate to materials contained in the appendixes to the chapter. QUESTIONS 1. What are the major advantages of notes to the financial (d) Destruction of a major plant in a flood. statements? What types of items are usually reported in (e) Death of the company’s chief executive officer (CEO). notes? (f) Additional wage costs associated with settlement of 2. What is the full disclosure principle in accounting? Why a four-week strike. has disclosure increased substantially in the last 10 (g) Settlement of a federal income tax case at consider- years? ably more tax than anticipated at year-end. 3. The FASB requires a reconciliation between the effective (h) Change in the product mix from consumer goods to tax rate and the federal government’s statutory rate. Of industrial goods. what benefit is such