What is the importance of Notes to the Audited Financial Statement?

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The Notes to the Financial Statements provide important disclosures and details related to the information reported in the Financial Statements. The reason for these notes harkens back to fulfilling the needs of the external users of the financial statements.

The main reason of notes is to present clear and fair view, just helps better understand financial statements.

Footnotes to the financial statements refer to additional information provided in a company's financial statements. Footnotes to the financial statements report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because these notes can be quite long, and if they were included, they would cloud the data reported in the financial statements.

It makes the financial statements more understandable as it gives more details about the figures

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It's an additional detailed information provided forming to and part of audit report. For example if we want to know hoe the mount of Depreciation is calculated we can know the same from notes, or if we want to know about significant accounting polices, the same can be taken from notes.

Under audit report the note ref. number is give like Note 02,03  and so on near to the item so that we can find the notes corresponding to it.

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They provide additional information relating to a company's operations and financial position and are considered to be an integral part of the company's financial statements.

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important notes that's accompany with financial statement it's declare how is the financial information made , and company legal statues, details about some figures in financial statement, and important notes in accounting policy and IFRS and more ..

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Notes to audited financial statements gives clarifications & justifications of the grey areas of the financial statements so that stakeholders can have certain degree of assurance of financials statements.

the notes are explanatory and supplemental notes that accompany the financial statements issued by an entity. The exact nature of these footnotes varies, depending upon the financial framework used to construct the financial statements (such as GAAP or IFRS). Financial statement footnotes are an integral part of the financial statements, so you must issue them to users along with the financial statements. They are extremely valuable to the financial analyst, who can discern from the footnotes how various accounting policies used by a company are impacting its reported results and financial position.

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agree with all