Page 194 - CA Final PARAM Digital Book.

• Financial or non-financial information (other than financial statements and the
auditor’s report thereon) included in an entity’s annual report.

• Appendix 1 of SA 720 contains examples of amounts or other items that may be
included in the other information.
• Examples of Amounts or Other Items that May Be Included in the Other
Information
The following are examples of amounts and other items that may be included in other
information. This list is not intended to be exhaustive.
• Amounts
o Items in a summary of key financial results, such as net income,
earnings per share, dividends, sales and other operating revenues, and
purchases and operating expenses.
o Selected operating data, such as income from continuing operations
by major operating area, or sales by geographical segment or product
line.
o Special items, such as asset dispositions, litigation provisions, asset
impairments, tax adjustments, environmental remediation provisions,
and restructuring and reorganization expenses.
o Liquidity and capital resource information, such as cash, cash
equivalents and marketable securities; dividends; and debt, capital
lease and minority interest obligations.
o Capital expenditures by segment or division.
o Amounts involved in, and related financial effects of, off-balance sheet
arrangements.
o Amounts involved in guarantees, contractual obligations, legal or
environmental claims, and other contingencies.
o Financial measures or ratios, such as gross margin, return on average
capital employed, return on average shareholders’ equity, current
ratio, interest coverage ratio and debt ratio. Some of these may be
directly reconcilable to the financial statements.
• Other Items
o Explanations of critical accounting estimates and related
assumptions.
o Identification of related parties and descriptions of transactions with
them.
o Articulation of the entity’s policies or approach to manage
commodity, foreign exchange or interest rate risks, such as through the
use of forward contracts, interest rate swaps, or other financial
instruments.
o Descriptions of the nature of off-balance sheet arrangements.
o Descriptions of guarantees, indemnifications, contractual obligations,
litigation or environmental liability cases, and other contingencies,
including management’s qualitative assessments of the entity’s related
exposures.
o Descriptions of changes in legal or regulatory requirements, such as
new tax or environmental regulations, that have materially impacted
the entity’s operations or fiscal position or will have a material impact
on the entity’s future financial prospects.
o Management’s qualitative assessments of the impacts of new
financial reporting standards that have come into effect during the
period, or will come into effect in the following period, on the entity’s
financial results, financial position and cash flows.
o General descriptions of the business environment and outlook.
o Overview of strategy.

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