Accounting

Question 1

Footnotes to Financial Statement

Answer 1

Financial statement notes (footnotes) include disclosures that provide further details about the information summarized in the financial statements.

• Discuss the basis of presentation such as the fiscal period covered by the statements and the inclusion of consolidated entities.
• Provide information about accounting methods, assumptions, and estimates used by management.
• Provide additional information on items such as business acquisitions or disposals, legal actions, employee benefit plans, contingencies and commitments, significant customers, sales to related parties, and segments of the firm.