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General Accounting Discussions: Financial Statement Interpretation

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    • CommentAuthormemcneely
    • CommentTimeApr 22nd 2007
     
    Hi --
    This may seem like a silly question, but please bear with me....Can someone please explain to me, for example, I am looking at a balance sheet that states the assets are $63,847, however, it states under the as of date that the "Dollars in Thousands"....what does this mean?

    Many Thanks --
    memcneely
    • CommentAuthorCounter
    • CommentTimeApr 23rd 2007
     
    It means that the amounts are rounded to the nearest thousand dollars. If "10" appeared, it would mean $10,000.00. Your example means $63,847,000.00. When amounts get so large and there are columns of numbers, it is easier to focus on the relevant digits. When were talking sixty million dollars, the last few digits don't matter. This is justified by the materiality concept.

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