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.  Continue reading →

Those two – share capital and share premium – can be disclosed in one or two separate notes. Considering you cannot have premium without the capital and that premium is something that’s paid per share just like nominal it’s really recommended and makes most sense to have them within one note however.  Continue reading →

By definition an Annual Report is all about your company’s results, however it’s a structure that’s expected from an Annual Report and not just simple text put together. Technically an Annual Report consists as a minimum of following sections:  Continue reading →

Note that “trade” payables are expenses that are directly related to business (i.e. materials purchase, services for sales etc.) and everything else is the “other” part of the note – taxes, accrued expenses, employee related payables etc.  Continue reading →

Retained earnings are yet another equity component that builds up from your earnings for the period and accumulates over time. The only components taken out from retained earnings are dividends. Now, that’s the general content when it comes to retained earnings. Yes, there may be other components that are related to adjustments, changes in policies etc. however we’ll not go into too much detail at this point.   Continue reading →

Now, your company may or may not have inventory, but if it does, it’s not just showing the balances broken into groups that’s expected from this note. Well, it’s that too obviously, but there’s a bit more to it.  Continue reading →

Every now and then it happens that accounting policies that are being used do change – either they are changed by regulatory or you choose to use another approach from opportunities given (i.e. fair value or cost price for investment property etc.). Continue reading →