All about annual reports
2006-07-25 02:00:38 · 4 answers · asked by Biggie smollz 1 in Business & Finance ➔ Investing
Footnotes have a real importance to the statement. The figures given might have been for 9 months only and not 12 months, as results for the last quarter would have been still under preparation. Then footnotes says so. This is only one example. There are other important informations foodnotes convey like: reserves kept for purpose of..., audited results awaited and this is only provisional etc.,
Now you would have understood the imporatnce of foot notes.
VR
2006-07-25 04:05:51 · answer #1 · answered by sarayu 7 · 0⤊ 0⤋
The footnotes provide clarifications to the numbers. For example, if net income fell dramatically, it "looks very bad!" But the footnote could explain that the reason for the sharp drop was due to a one-time charge.
This isn't nearly as bad because it's not a trend, but rather a one-time extraordinary event. Investors need to know these sorts of things in order to decide whether the company is in good shape or not.
2006-07-25 16:53:52 · answer #2 · answered by msoexpert 6 · 0⤊ 0⤋
Go to http://www.investopedia.com/university/fundamentalanalysis/notes.asp for a full explanation
2006-07-25 02:06:08 · answer #3 · answered by go10bucks 2 · 0⤊ 0⤋
well it contains the vital info and terms and conditions which i think are very vital
2006-07-25 02:04:12 · answer #4 · answered by eric 3 · 0⤊ 0⤋