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Financial statements play a fundamental role for organizations, as they ensure the reasonableness and reliability of financial information, allowing interested parties to make meaningful comparisons between different periods of time or with other entities. However, it is not only important to present the numbers, but also to provide additional and detailed information through high quality financial notes. These notes offer explanations, clarifications, and descriptions that complement the financial statements and provide a more complete view to stakeholders.
One of the main advantages of proper preparation of notes of financial statements is that they provide detailed information about the accounting policies and underlying assumptions that have been used to prepare the financial statements. This information helps users to better understand the reported numbers and assess whether the accounting policies are appropriate and consistent.
The notes may also include additional information about significant transactions or future events that could affect the company’s financial position, including future risks or contingencies.
In conclusion, financial statements accompanied by quality notes are essential for making informed business decisions and assessing a company’s financial situation. By providing additional information and details on the different accounting aspects, a culture of integrity and transparency is demonstrated, which promotes an improvement in the reputation of companies in the market.
