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Accounting & Tax vocabulary · Financial Statements

Notes to the financial statements

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, notes to the financial statements means: The detailed explanations that follow the main financial statements, describing accounting policies, estimates and the breakdown of key figures.

In Turkish: finansal tablo dipnotları, dipnotlar

How it is used

Usually just called 'the notes'. They are an essential part of the statements and are audited too. Readers find details on debt, leases, tax and related parties there.

Example sentences

  1. The notes to the financial statements explain how the company values its inventory.

  2. You'll find the lease details in the notes to the financial statements, not on the balance sheet itself.

Common collocations

  • see Note 12
  • accounting policies
  • disclosure notes
  • notes to the accounts
  • balance sheetA financial statement that shows what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.
  • annual reportA document a company publishes each year containing its audited financial statements and a review of its business, strategy, risks and governance.
  • going concernThe assumption that a business will continue operating for the foreseeable future, at least twelve months, rather than being closed down or sold off.
  • IFRSInternational Financial Reporting Standards: the global accounting rules issued by the IASB and required for listed companies in more than 140 jurisdictions.

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.