“There is no accounting for tastes.” --Ann Radcliffe
Supporting Material to Financial Statements
Financial statements are not the sole output of a financial reporting system. Additional information about a company is also communicated in the financial reports. Simply read through any annual report and you will observe this to be the case!
1. Management discussions and analysis
Highlight any trends and identify events and uncertainties that affect a company’s:
Results of operations.
2. Management reports
Senior management’s responsibilities for the company’s financial and internal control system.
Shared role of management and the auditor in preparing financial statements.
3. Auditor reports
External independent certified public accountant hired by management to provide an unbiased opinion in conformity with the Accounting standards
4. Explanatory notes
Accounting principles and methods employed
Disclosure of individual financial statement items
Commitments and contingencies
5. Supplementary information
Supplementay information includes :
Business segment data
Quarterly financial data.
6. Proxy statements
Information necessary for shareholders to vote on matters which a proxy is solicited.
Identity of shareholders owning 5% or more outstanding shares.
Biographical information on board of directors and compensation arrangements.