Why Footnotes

A typical annual report contains more than the basic three financial statements. This chapter focuses on one additional piece of information in annual financial reports—footnotes to financial statements. Footnotes provide the so-called fine print. Without footnotes financial statements would be incomplete, and possibly misleading. Footnotes are an essential supplement to financial statements.

Top-level managers should never forget that they are responsible for the company's financial statements and the accompanying footnotes. The footnotes are an integral, inseparable part of the financial statements. In fact, financial statements state this fact on the bottom of each page, usually worded as follows:

The accompanying footnotes to the financial statements are an integral part of these statements.

The auditor's report (see the next chapter) covers footnotes as well as the financial statements. In short, footnotes are necessary for adequate disclosure in financial reports. The overarching concept of financial reporting is adequate disclosure, so that all those who have a legitimate interest in the financial affairs of the business are provided the relevant information they need to make informed decisions and to protect their interests in the business.

The Force Of Fulcrums

The Force Of Fulcrums

Learning About The Force Of Fulcrums Can Have Amazing Benefits For Your Life And Success! How simple shifts in your thinking will make you rich forever! If you wish to grow beyond your current state of being, you'll need to learn about the fulcrum precept. A fulcrum is the pivot point for a lever. Therefore, whenever you wish to properly utilize leverage, then, you'll need to place the fulcrum in the right place. Many people have never heard if this and have no idea how to go about figuring out where they are or how to change it.

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