The footnotes accompanying the financial statement, narrative explanations of the important aspects of various items in the statement.What Are Financial Statement Footnotes?
Financial Statement Footnotes FAQs
Financial statement footnotes are additional notes that provide further information about the numbers reported in a company’s balance sheet, income statement, and cash flow statements. They typically contain detailed explanations of items such as accounting policies, investments, leases, litigation settlements, or commitments related to the business.
Financial statement footnotes provide investors and analysts with a more detailed view of a company’s finances, helping them to assess the true economic performance and financial position of the company.
Most companies typically update their financial statement footnotes annually in connection with their annual financial statements.
Investors should pay attention to any information that is relevant to the company’s investments, legal proceedings, debt obligations, or other non-operational activities as well as details on accounting policies and practices.
Financial statement footnotes are typically included in the notes to the financial statements section of a company’s annual report. They may also be available on the company’s website or through third-party provider websites such as Edgar Online and Bloomberg.com.
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.
To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.
