Those details to the main statements are essentially called notes to the financial statements. The very first note is about the accounting principles and afterwards we move into more in depth with analyzing the contents of numbers presented in the main financial statements. Note here that, as always, only significant balances should be disclosed in more detail. For an example if you have very little cash and cash equivalents, ask yourself if it’s really this relevant to make a separate note about it saying that you have x amount in bank accounts and y amount as cash? Does it really give the readers anything relevant they did not yet read from the balance sheet? Always ask yourself what the readers are getting extra if you make the note. 

Essentially though, what the notes are about, is disclosing in more details what a certain balance on the main statement consist of by breaking it down to subgroups and also disclosing in a text form any other additional information like the reason, conditions and other applicable bits (i.e. interest rates and any collateral present on loan agreements etc.).

Notes are also prepared for those balances, which have considerable movement during the period that’s not so apparent from the income statement. Mostly the movements apply to fixed assets or funding received from government or similar projects, but as always there are other transactions and balances that could be disclosed for an entire reporting period – received and used amounts alongside with carried and brought forward balances.

As a general rule the notes should be following the order the main statements are presented in – if it’s the balance sheet that’s first than the notes to the financial statements should also take off from the balance sheet ones and continue from there. Furthermore, if the balance sheet starts with less liquid assets like property, plant and equipment, this is your first note when it comes to financial statements just as well.

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