Answer
There are four main techniques to disclose information in the balance sheet.
1. Notes- An entity can utilize notes to reveal additional explanations where necessary conveniently.
2. Parenthetical explanations- Parenthetical explanations provides brief descriptions or additional information affiliated with the next item within the balance sheet.
3. Supporting schedules- This a separate document prepared with more detailed information than just a single summary.
4. Cross-references/contra items- This is where the organization establishes a cross-reference relationship between an asset and a liability within the balance sheet.
Work Step by Step
Any of the above methods can be used, depending on the nature of the item and the additional information to be provided.
