Notes to the financial statements

• Overall


  These reports the details and additional information left out of the main reporting documents that may be useful in helping stakeholders understand the financial statements

  For example a summary of the business accounting methods, depreciating assets or an explanation of how they value inventory
• How it impacts a business


  Most of the time, notes to the financial statements allow businesses to overcome some of the limitations listed above. These notes can often fill in the gaps, and the financial position of a business can be represented more accurately. However, it is at the business’ discretion as to what is included in the notes. Because there isn’t a set lost of items that must be covered, businesses can omit certain information