Annual accounts: what to include in the explanatory notes?

Publication date: 2013-09-30 13:27:16

- Why the notes to the financial statements like the general conditions for the insurance
- Because no one reads it !

http://gagfin.pl/blog/entry/id/112/

Please note , however, is an integral part of these financial statements. It should contain relevant information and explanations necessary to ensure that the financial statements truly and fairly represented the financial position and financial performance.

In particular, it should include:

Introduction to the financial statements , including a description of the rules (policies) , including valuation methods and the preparation of financial statements and the presentation of the causes and effects of any changes in relation to the previous year

notes to the balance sheet, income statement , statement of changes in equity and statement of cash flows , the proposed distribution of profit or covering of loss , basic information about employees and entity authorities and other relevant information for the understanding of the financial statements.

The detailed scope of the notes which were prepared by entities other than banks , insurance and reinsurance undertakings are set out in Schedule 1 to the Act on Accounting. These include, among others:

table moves ( changes ) of fixed assets, intangibles, long-term investments , the value of land in perpetual usufruct ; net value of fixed assets used be on the basis of lease agreements, rent, lease

budgetary commitments, the group of obligations secured by the assets , liabilities , division of liabilities by maturity

ownership structure of the

proposals for the distribution of profit (loss coverage)

Table of changes in provisions (initial state, increase, use, solutions, final state)

data on write-downs of receivables, inventory, fixed assets

a list of major active and accrued

type or territorial structure of sales, revenues, costs and results of discontinued operations

settlement of the main items that differ from the taxable earnings

cost of fixed assets under construction , investments in non-financial assets

extraordinary items

the structure of cash accepted for cash flow

contracts not included in the balance sheet

transactions entered into on terms other than market

average annual employment ,

remuneration of the members of the governing bodies , granted them a loan , the auditor's remuneration

events after the balance sheet date , not included in the report

changes in accounting principles

non- consolidated joint ventures

transactions with related parties.

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