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. This is done mainly for the sake of clarity because these notes can be quite long, and if they were included, they would cloud the data reported in the financial statements.

Also known as the "footnotes".

It is very important for investors to read the notes to the financial statements included in a company's periodic reports. These notes contain important information on such things as the accounting methodologies used for recording and reporting transactions, pension plan details and stock option compensation information - all of which can have material effects on the bottom-line return that a shareholder can expect from an investment in a company.


Investment dictionary. . 2012.

Look at other dictionaries:

  • 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… …   Wikipedia

  • 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

  • notes to the financial statements — Fin explanation of particular items in a set of financial statements …   The ultimate business dictionary

  • 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

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.