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a. Without them no one would be able to use the numbers reported
b. So that the reader knows what type of inventory valuation method is being used
c. It is required by the IRS
d. To give the reader further insight into particular line items on a financial statement
To give the reader further insight into particular line items on a financial statement
Notes to financial Statements refer to additional information provided in a company’s financial statements
D- To give reader further insight into particular line items on financial statement.
Company give the notes to provided the additional information in financial statment.
TO MAKE ALL THE STAKEHOLDERS UNDERSTAND WHAT LIES IN AND EDUCATE THEM REGARDING FINACIAL TERMINOLOGY.
to disclose all the related informations that will make the FS understandable to the defferent users.
Answer is:-
D
To give further detail of particulate line of FS
Notes to Financial Statements are important to include because these notes further explain the numbers given in Financial Statements. Normally added to the end of Financial Statements.
It explains the Accounting procedures of the organization as well as includes the clarification regarding numbers shown in financial statements. So Investors & other stakeholders take decisions after analyzing the statements based on these notes.
Financial Accounting Standards Board consider these notes an important part of Financial Statements.
Apart from being a requirement, the purpose is to substantiate all other relevant information, schedules and computations that are not presented in the face of the financial statements.
