# Clarification Question Bank

Use this checklist to ask only the questions needed to understand the transaction before analysis.

## 1. Reporting Context

- What reporting framework applies (`US GAAP`, IFRS, or another basis)?
- Is the reporting entity an SEC registrant? If yes, what filer status applies?
- What reporting period and close date does this conclusion affect?
- Is the transaction material quantitatively or qualitatively?

## 2. Transaction Facts

- What exactly happened, and what is the business purpose?
- What legal form does the arrangement take (contract, amendment, side letter, etc.)?
- What are the key dates (execution, delivery, acceptance, effective date)?
- What are the significant payment terms and contingencies?

## 3. Scope and Unit of Account

- What is the proposed unit of account?
- Are there multiple components that may need separation or combination?
- Are related-party relationships involved?

## 4. Recognition and Measurement Inputs

- What amounts are known vs estimated?
- What assumptions are management currently using?
- Are fair value, impairment, expected credit loss, or probability assessments required?
- Are there alternative accounting policy elections available?

## 5. Presentation and Disclosure Inputs

- Where does management expect to present the item in the financial statements?
- What note disclosures are currently drafted, if any?
- Are non-GAAP, segment, or MD&A impacts expected?
- Are debt covenant, going concern, or subsequent-events disclosures implicated?

## 6. Process and Evidence

- What source documents are available (contracts, board minutes, valuation reports)?
- Is there prior-year treatment for similar transactions?
- Is there a target filing date or audit committee deadline?
- Are there auditor-preferred formats or documentation standards to follow?

## 7. Output Preferences (Mandatory)

- Should the response be prepared as a `memo`, `email`, or `q-and-a`?
- Who is the audience (controller, CFO, audit committee, external auditors)?
- Should journal entries be included?
- Should draft disclosure language be included?