Ignore Footnotes at Your Peril.
The Forensic Examiner 2004, Spring, 13, 1
The Forensic Examiner
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Abstract Footnotes often describe items that can significantly impact present and future earnings but are not reflected on the balance sheet, income statement, or cash flow statement. Although footnotes are sometimes difficult to read and decipher, the benefit of interpreting them is well worth the effort. Accounting for stock options and pensions are two examples of footnotes that disclose items that can materially influence investors' evaluations of operating results. Ignoring these footnotes leaves investors, creditors, and other users with an incomplete view of a company's finances. The recent deluge of publicity about corporate reporting abuses confirms the necessity of using footnotes to look behind the numbers companies release in their quarterly and annual financial statements.
- Category: Health & Fitness
- Published: Mar 22, 2004
- Publisher: American College of Forensic Examiners
- Seller: The Gale Group, Inc.
- Print Length: 16 Pages
- Language: English