Notes To The Financial Statement
Definition
Detailed text provided as a supplement to the balance sheet, income statement, and statement of changes in financial position in a company's annual report to provide added facts and/or clarify unusual items or entries on the statements. These notes also provide valuable information to shareholders, such as accounting methodologies used in preparing the statements and details of pension plans, which affect the shareholders' investment in the company. They are placed after the statements so they do not obscure the data in the statements.
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