Practice prompt · Q:financial-reporting-environment-and-framework/other-assets-disaggregation-001

What belongs in Other Assets?

Trace a residual balance sheet line to its components and separate presentation from recognition and measurement.

Updated Sep 10, 2026 Review due Dec 10, 2026

Practice

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A draft balance sheet combines a refundable deposit, a prepaid service, and a long-term contract cost in one Other Assets line. The supporting schedule has not been reconciled to the total. What is the strongest review step?

Choose the best answer. a Reconcile the line to its components, test current and noncurrent classification, and check whether an item needs separate presentation or disclosure. b Accept the total because the words Other Assets establish that every component is an asset. c Move every component to noncurrent assets because the word current is absent. d Omit the note because combining the amounts makes each component immaterial.

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Answer: a

Choice a. Trace the residual line to its components, verify each item's recognition and amount, classify it from its own facts, and determine whether separate display or explanation is needed.