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Sample Notes to Financial Statements

The notes to the financial statements provide details on cash, property and equipment, statutory payables, percentage tax payables, service revenue, and salaries and benefits. Cash consists of a current deposit account that earns immaterial interest and is regularly reconciled. Property and equipment lists assets and depreciation details using straight-line depreciation over 5-20 years with a 5% salvage value. Statutory payables include deductions from employee wages for government agencies and employer shares charged to expenses. Percentage taxes are 3% of gross receipts remitted quarterly. All sales are cash basis assuming full service requests throughout operations. Salaries notes describe details from tables.

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223 views4 pages

Sample Notes to Financial Statements

The notes to the financial statements provide details on cash, property and equipment, statutory payables, percentage tax payables, service revenue, and salaries and benefits. Cash consists of a current deposit account that earns immaterial interest and is regularly reconciled. Property and equipment lists assets and depreciation details using straight-line depreciation over 5-20 years with a 5% salvage value. Statutory payables include deductions from employee wages for government agencies and employer shares charged to expenses. Percentage taxes are 3% of gross receipts remitted quarterly. All sales are cash basis assuming full service requests throughout operations. Salaries notes describe details from tables.

Uploaded by

Marilyn Cercado Fernandez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

5.

Notes to Financial Statements

Notes 1 – Cash

This account consists of the following:

Cash in bank represents current deposit account in a reputable bank. The said account

earns interest which deemed immaterial to be recognized. The entity reconciles the books and

balances regularly as part of its cash monitoring and internal control measures.

Notes 2 – Property, Plant and Equipment

This account consists of the following (based on Tables 4.1-4.3):


Details of property, plant and equipment are as follows: (based on Tables 4.1-4.3)

Details of Depreciation are as follows

Property and equipment have a useful life of 5 to 20 years with a 5% salvage value and

depreciated using the straight-line method.

Notes 3 – Statutory Payables

This consists of the following


Statutory payables include statutory deductions from employee wages and employer’s

share to be remitted to the government agencies monthly.

Details of employer’s share charged to operating expenses are as follows: (based on

Notes 6)

Notes 4 – Percentage Tax Payables

This consists of the following

Percentage taxes are based on 3% of gross receipts and are remitted on a quarterly

basis. Total percentage tax charged to operating expenses are as follows:

Notes 5 – Service Revenue

All sales are on a cash basis with the assumption of full-service requests all throughout

the operation. Full-service request is attainable as inferred from the market analysis conducted.
Notes 6 – Salaries and other benefits

Description (based on Tables 3.1-3.2)

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