Explanatory Notes Interpretation
Explanatory notes to the financial statements are an integral part of the statements. These notes, sometimes called the financial review, result from the application of the full disclosure concept discussed earlier. The notes disclose details of amounts summarized for financial statement presentation, explain which permissible alternative accounting practices have been used by the entity, and provide detailed disclosure of information needed to have a full understanding of the financial statements. ... Although not usually a part of the explanatory notes to the financial statements, most annual reports do include a summary of key financial data for a period of several years.