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". Investopedia Says:
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. Related Terms:
10-K
Account Settlement Annual Report
Balance Sheet
Bottom Line
Fundamental Analysis
Income Statement |