On the face of balance sheet, income statement, statement of cash flows and statement of changes in equity, all the information cannot be presented. In order to provide additional information about the figures, accountants take the support of notes and disclosure. So, if the user of the financial statement need to know more about the figure on the face of the financial statement, he or she just go to the notes section given at the back of the financial statements.
Common Notes & Disclosure
1. An introduction about the company, its legal status, country of registration and nature of the business,
2. A detailed discussion about the accounting policies used in the preparation of the financial statements,
3. Information about transaction with related parties,
4. Detailed segregation of finance lease liability into current portion, 2 to 5 year portion and beyond 5 year portion,
5. Schedule of fixed assets showing addition, deletion of assets, accumulated depreciation and depreciation for the current reporting period. This schedule should present cost and wdv of each and every fixed assets of the entity.
6. Break up cost of sales,
7. Break up of admin and selling expenses,
8. Contingent event,
9. Events after the balance sheet.