DISCLOSURE OF NOTES ON ACCOUNTS :

The notes to the accounts mean a series of notes that are referred to in the main body of the financial statements. These are the additional information given at the end of financial statements. Notes to financial statements help in explaining specific items in the financial statements as well as provide a more comprehensive assessment of a company’s financial condition. The financial accounts are not completed without the notes on accounts.

The notes of accounts give a individual statement about a particular line statement of financial statement. For example, if the balance sheet of a company shows the decrease in reserve and surplus of the company. One may be able to get the reasons of decrease in the share capital of the company from notes on accounts only. The notes of accounts of a company are integral part of the financial statement and without referring notes on accounts, the user may get mis-leaded.