The monetary accounting duration parenthetical explanation identifies a way of displaying advice emerging in financial announcements. Parenthetical explanations are wanted to an organizations balance sheet if additional accuracy or completeness is demanded.
Parenthetical explanations are just one of the tactics to convey material information that’s supplementary to those items appearing on an organizations balance sheet. These small and succinct explanations bring clarity into the reader of their provider ‘s financial reports. Disclosures are deemed mandatory in the event the information appearing in a statement is regarded as misleading with no addition.
These excuses are displayed in the body of this monetary statement. Displaying explanations within this way is regarded as advantageous when comparing to different communication techniques like supporting notes or schedules which may accompany the document.
Company A repurchases 20,000 shares of common stock at $80 per share, or even $ 1,600,000. The line item would come in the dog owner ‘s equity portion of the balance sheet as treasury stock. The parenthetical explanation to this thing will be:
|Less: Treasury Stock (20,000 shares at $80 per share)||$1,600,000|