Page 74 - Ebook Financial Accounting 3

General reserve xxx xxx

Long term and Deferred Liabilities

Debentures and loans xxx

Deferred taxation xxx xxx
XXX

d) Notes to Accounts

➢ Additional information not included in the accounts on the financial statements is

disclosed by means of a note or supporting schedule.
➢ The notes accompanying the financial statements are really useful ways of

presenting additional information.
➢ In preparation and writing of financial reporting notes, management should

properly

✓ Specify what data are to be disclose
✓ Outline the desired format of the note

✓ Construct and use short sentences in the note
✓ Use terminology understandable to the external user

✓ Be concise but complete
➢ Based on MFRS 101, a company normally presents notes in the stipulated order to

assist users to understand the financial statements and to compare them with

financial statements of the entities.

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