What Are Notes To The Financial Statement.? Can you name the major contents normally listed under notes to the financial statement.


If we have too much details like statutory and voluntary information disclosed on the face of the financial statements, these would make them very cluttered and even confusing and intimidating to the readers/investors. Therefore, such details or information are presented in the NOTES that form part of the financial statements.

 Some of the Major Contents In The Notes To The Financial Statements are:

 1.0      Corporate Information of the Company

2.0      Significant accounting policies:

2.1      Basis of preparation

2.2      Summary of significant Accounting Policies

2.2 (a) Subsidiaries and basis of consolidation

2.2 (b) Goodwill

2.2 (c ) Property, plant and equipment, and depreciation

2.3                New standards and interpretation issued but not yet effective

2.4        Significant accounting estimates and judgements

3.0        Revenue

4.0 Cost of sales

5.0 Other operating income

6.0 Finance costs

7.0 Loss before tax

8.0 Employee benefits expense

9.0 Directors’ remuneration

10.0 Income tax expense

11.0 Loss per share

12.0 Property, plant and equipment

13.0 Prepaid lease payments

14.0 Investment in subsidiaries (continued)

15.0 Investment properties

16.0 Goodwill on consolidation

17.0 Other investments

18.0 Long term receivables

19.0 Inventories

20.0 Trade and other receivables (continued)

21.0 Due from a customer on contracts

22.0 Cash and cash equivalents

23.0 Non-current assets held for sale (continued)

24.0 Borrowings

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