Question

Briefly explain what additional disclosures does financial statement include related with its current assets. What does the use of disclosures achieves?

Answer 1

an entity must also disclose,in the notes,information about the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets of liablities within the next financial year.[IAS 1.125] these disclosurse do not involve disclosing budgets or forecasts  .

purpose of disclosuers

while a company's financial statements contains all the relevent financial data about the company, that data is often in need of further explanation. that is where the disclosuers on the financial statements come into play.

A financial statements disclosure will comunicate relevant information not captured in the statement itself to a company's stakeholders. The disclosurse can be required by generally accepted accounting principles or voluntary per managment decisions.