Footnotes to the Financial Statements

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Definition of 'Footnotes to the Financial Statements'

Footnotes to the financial statements are notes that provide additional information about the financial statements. They are usually presented at the end of the financial statements and are an integral part of them.

The purpose of footnotes is to provide users of the financial statements with more information about the company's financial position, results of operations, and cash flows. This information can help users to understand the company's financial performance and make informed decisions about investing in the company.

The content of footnotes varies depending on the company and the type of financial statements being presented. However, some common types of information that are included in footnotes include:

* Descriptions of the company's accounting policies
* Details about the company's assets, liabilities, and equity
* Information about the company's revenue and expenses
* Disclosures about the company's contingent liabilities and commitments
* Information about the company's earnings per share
* Information about the company's cash flows

Footnotes are an important part of the financial statements because they provide users with additional information that can help them to understand the company's financial position and performance. By reading the footnotes, users can get a more complete picture of the company's financial situation and make informed decisions about investing in the company.

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