The additional information added to the end of the financial statements

[mstakh.i.mo.mi]

Usually the company's CEO will write a letter to shareholders describing the management's performance and the company's financial highlights. In the United States, before the advent of the Internet, the annual report was considered to be the most effective way for companies to communicate with individual shareholders. Blue chip companies spend huge sums of money to produce and mail attractive annual reports to each shareholder. Annual reports are usually written in the form of coffee tables.


helps explain the specific items in the statements and provides a more comprehensive advertising phone number data assessment of the company's financial situation. This information is called the notes （ or “ notes to the financial statements ”）. The notes to the financial statements may include contextual information about debt, accounts, contingent liabilities, continuing business standards, or interpretation of financial data （, for example, information indicating litigation ）.


The notes clarify the various reporting items. The notes are also used to explain the accounting methods used to prepare statements and support the evaluation of the calculation method of a particular account. For example: if a company's fixed asset impairment line in the income statement lists the loss, the note can explain the reason for the impairment by describing how the asset is impaired. In the consolidated financial statements, the amount of ownership （ holding equity ） owned by all subsidiaries and parent companies in the subsidiaries is listed.