Notes to Accounts

Also known notes to financial statements, footnotes, notes to accounts are

supporting information that is usually provided along with a company’s final
accounts or financial statements. Many such notes are required to be provided by
law, including details related to provisions, reserves, depreciation, investments,
inventory, share capital, employee benefits, contingencies, etc.

Other information supplied along with the financial statements may be a product of
the accounting standards being followed by the business. Notes to accounts
help users of accounting information to understand the current financial position
of a company and act as a support for its estimated future performance.

It acts as supplementary information furnished along with the final accounts of a

company and may be tremendous in size depending on the company, accounting
framework and nature of the business. The information supplied depends on the
accounting standards used such as IFRS or GAAP.