Video: Introduction to Financial Statement Notes

In this lesson, Nick Palazzolo, CPA, unpacks the intricacies of financial statement Notes, which serve as the narrative backbone to the core numbers presented. He clarifies how Notes act like an appendix, providing essential explanations and elaborations on the financial data, from the valuation methods of inventory to the accounting of contingencies and commitments. Nick emphasizes the importance of disclosing the entity’s accounting policies within these Notes and highlights the need for clear communication of any changes in these policies. Prepare to gain a clearer understanding of how Notes enable companies to describe their unique financial story through both words and numbers.