NOTES TO

FINANCIAL
STATEMENTS
 Notes to Financial Statements

Notes to financial statements provide narrative description or disaggregation of items presented in

the financial statements and information about items that do not qualify for recognition
An entity shall, as far as practicable, present notes in a systematic manner.
Specifically, the notes to the financial statements shall:
 Present information about the basis of preparation of the financial statements and the specific accounting
policies.
 Disclose the information required by PFRS that is not presented in the financial statements
 Provide additional information which is not presented in the financial statements but is relevant to an
understanding of the financial statements

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 Order of Presentation

An entity normally present notes in the following order:

 Statement of compliance with PFRS
 Summary of significant accounting policies used
 Measurement basis used (historical and current)
 Accounting policies used
 Judgments made in the process of applying accounting policies
 Information about the assumptions it makes about the future, and other major source of uncertainty at the end of
reporting period
 Supporting information or computation for line items presented in the FS
 Other disclosures:
 contingent liabilities
 unrecognized contractual commitments
 Dividends proposed or declared before the financial statements were authorized for issue that are not distributed,
and any cumulative preference dividends not recognized
 nonfinancial disclosures like domicile and legal form of entity, country of incorporation, address of registered office
or principal place of business, description of the nature of the entity’s operations and its principal activities, and the
name of the parent and the ultimate parent of the group. 3
Thank You