essential attribute of financial statements is an explanatory note, which is made on the various documents and has the main goal of detail and detail to disclose information, explaining the activities of an enterprise or organization.Its content and the mandatory reporting provided p. 5 PBU 4/99.As a rule, the contents of the note includes some additional data tables, graphs, charts, that allow stakeholders more accurately and objectively evaluate the economic activity of the enterprise or organization.
According to the established practice, the explanatory note is not provided by small businesses that are not obliged to carry out the statutory audit of financial statements.
submit to a specific date explanatory note to the balance sheet must contain the following information distributed within the divisions.
1. General information about the enterprise should include information about:
- organizational form of legal entity, and its name;
- factual and legal address;
- the number of employees working at the balance sheet date and the average annual number;
- the name, structure and composition of governing and executive bodies;
- information about the founders of the company or organization;
- the amount of share capital;
- availability of licenses, the time of their issuance;
- the amount of taxes paid;
- information on the auditor.
2. General description of the accounting policies.In this section, an explanatory note reflecting accounting rules applicable to the particular enterprise, as well as the changes that were made in it, indicating the reasons for these changes.In addition, the results indicate all those that came as a result of changes in methodology accounting policies.
3. Data on individual assets are recognized on the fixed assets of the enterprise, inventories, loans, financial investments and assets contributed in foreign currency.
In particular, such data are data on the initial value of the cost of operating, depreciation and amortization, a useful life, real estate companies belonging to the proprietary methods for assessing the operating system and assets of the enterprise, on the motion of the material means of the debts of the enterprise, on thethe value of loans and the repayment period, the value of securities and assets and others.
4. Analysis of profit explanatory note reflecting on the activities of the enterprise or organization.For such an assessment is carried out specifically the calculation of the coefficients that characterize the parameters of liquidity, profitability, financial performance, capacity to pay.This explanatory note to the annual report must contain data on the availability of funds in hand and balances with the company, the amount of incurred losses and their causes, not just repayment of the loan, information about the paid penalties and other sanctions as evaluating the overall financial situation of the organization or enterprise.
5. Information on the balance sheet reflects the note sales, the composition of production costs and reserves, extreme cases of economic activity.
6. Explanation of the specific articles buhuchetnosti.
7. Estimates of total business activity, which indicates the extent of the markets, the reputation of the organization, the level of implementation of forecast parameters of enterprise development and effective use of resources.
8. Data on changes in the value of the opening balance and their causes.
9. Details of subsidiaries and dependent companies and organizations detailing the characteristics of their business.
10. Contingencies - litigation, involving the company's warranty obligations.
11. For information about the state of conducting joint activities: objectives, the amount of contribution to it, the type and number of contracts, the value of assets, the amount of profit, information on joint operations and assets.
12. Information by segment are provided in the case where the company or organization have subsidiaries or affiliates or divisions of the company.
13. Information about the events that occurred after the balance sheet date and the analysis of the causes and consequences.
14. The data on state aid, if provided.It indicated its purpose, the nature and magnitude of the conditions and results of use.
15. Environmental indicators reflecting the amount of influence of industrial activity on the environment.
16. Information provided by the JSC should include information on the number of all types of shares and data on their nominal value.
17. The information to be reported under RAS 18/02.
18. For information about discontinued operations.
19. Other data.
correct and complete representation of the data in the note is not only an important element of the accounting policy, but also an effective tool for in-depth analysis of the company in order to develop a strategy for its long-term development.
