![]() These estimates are based on management’s knowledge about current events and expectations about actions they may undertake in the future. GAAP requires them to make estimates and judgments in several areas including, but not limited to, those related to the determination of the estimated total revenue, fair value of stock-based compensation including the fair value of common stock, income taxes, and loss contingencies. Management bases the estimates and judgments on historical information and on various other assumptions that they believe are reasonable under the circumstances. These estimates form the basis for judgments management makes about the carrying values of its assets and liabilities, which are not readily apparent from other sources. The preparation of consolidated financial statements in conformity with GAAP requires management to make judgments, assumptions, and estimates that affect the reported amounts of assets, liabilities, revenue, and expenses.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |