Answer
This is a section disclosing the accounting policies used, as required by the generally accepted accounting principles (GAAP).
Work Step by Step
This section must disclose:
1. Depreciation methods
2. Basis of consolidation
3. Inventory pricing
4. Amortization of intangible assets
5. Recognition of revenue from leasing and franchising operations
6. Recognition of profits on long-term contracts such as construction
