Notes to the Financial Statements
- Notes to the Financial Statements
Notes to the Financial Statements are additional notes and information added to the end of the financial statements to supplement the reader with more information. Notes to Financial Statements help explain the computation of specific items in the financial statements as well as provide a more comprehensive assessment of a company's financial condition. Notes to Financial Statements can include information on debt, going concern, accounts, contingent liabilities, or contextual information explaining the financial numbers (e.g. to indicate a lawsuit). The information contained within the notes not only supplement financial statement information, but they clarify line-items that are part of the financial statements. For example, if a company lists a loss on a fixed asset impairment in their income statement, Notes to Financial Statements could serve to corroborate the reason for the impairment by providing specific information relative to how the asset became impaired. Notes to the Financial Statements are also used to explain the method of accounting used to prepare the financial statements (all publicly traded companies are required to use accrual basis accounting for financial reporting purposes as mandated by the SEC), and they provide valuations for how particular accounts have been represented. In consolidated financial statements, all subsidiaries should be listed as well as the amount of ownership (controlling interest) that the parent company has in the subsidiary companies. Any items within the financial statements that are valuated by estimation should be part of the Notes to Financial Statements if a substantial difference exists between the amount of the estimate previously reported and the amount of the actual results. Full disclosure of the effects of the differences between the estimate and the actual results should be in the note.
External links
* [http://www.investopedia.com/university/fundamentalanalysis/notes.asp Fundamental Analysis: Notes To The Financial Statements] by Investopedia.com
* [http://www.googobits.com/articles/1409-the-notes-to-the-financial-statements-may-be-worth-noting.html The Notes to the Financial Statements May Be Worth Noting] by Googobits.com
Wikimedia Foundation.
2010.
Look at other dictionaries:
Notes To The Financial Statements — Additional information provided in a company s financial statements. Notes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement … Investment dictionary
Notes to the financial statements — A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. The New York Times Financial Glossary … Financial and business terms
notes to the financial statements — A detailed set of notes immediately following the financial statements in an annual report that explain and expand on the information in the financial statements. Bloomberg Financial Dictionary … Financial and business terms
Financial statements — (or financial reports) are formal records of a business financial activities. In British English, including United Kingdom company law, financial statements are often referred to as accounts, although the term financial statements is also used,… … Wikipedia
Notes to financial statements — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts … Wikipedia
financial statements — The annual statements summarizing a company s activities over the last year. They consist of the profit and loss account, balance sheet, statement of total recognized gains and losses, and, if required, the cash flow statement, together with… … Accounting dictionary
notes to the accounts — notes to financial statements Information supporting that given on the face of a company s financial statements. Many notes are required to be given by law, including those detailing fixed assets, investments, share capital, debentures, and… … Accounting dictionary
notes to the accounts — notes to financial statements Information supporting that given on the face of a company s financial statements Many notes are required to be given by law, including those detailing fixed assets, investments, share capital, debentures, and… … Big dictionary of business and management
financial statements — The annual statements summarizing a company s activities over the last year. They consist of the profit and loss account, balance sheet, statement of total recognized gains and losses, and, if required, the cash flow statement, together with… … Big dictionary of business and management
notes to financial statements — notes to the accounts … Accounting dictionary
