REGULATIONS CONCERNING TERMINOLOGY, FORMS AND METHODS OF PREPARATION OF FINANCIAL STATEMENTS, ETC. Copyright Roderick Seeman

Article 20

1. The reserves related to assets classified as current assets as deduction items on each of the said asset items, and must be entered with a name such as bad debt reserve or otherwise indicating the purpose for which the reserve was established. However, this shall not bar the utilization of the methods listed in any of the items hereinafter.

i. The method of entering the said reserve via the summing up into one reserve deduction items deducted from each of the said assets items.

ii. The method of directly deducting the said reserve from each of the said asset items and showing the balance thereof as the monetary amount for each of the said assets.

2. In the cases of Item 2 of the previous Paragraph, the reserve must be noted for each of the said asset items or the lump sum thereof.