Financial Notes and Supplementary Schedules

The notes provide information that is essential to understanding the information provided in the primary statements.

The notes disclose the basis of preparation for the financial statements.

The notes also disclose information about the accounting policies, methods, and estimates used to prepare the financial statements.

Comparability occurs when different companies’ information is measured and reported in a similar manner over time.

Comparability helps the analyst identify and analyze the real economic differences across companies, rather than differences that arise solely from different accounting choices.

Because comparability of financial statements is a critical requirement for objective financial analysis, an analyst should be aware of the potential for differences in accounting choices even when comparing two companies that use the same set of accounting standards.

Note disclosures also include information about:

financial instruments and risks arising from financial instruments

commitments and contingencies

legal proceedings

related-party transactions

subsequent events

business acquisitions and disposals

operating segments’ performance.