Do the notes to the financial statements add value to investors, or have they evolved from tradition?

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Do the notes to the financial statements add value to investors, or have they evolved from tradition? While listening to talk radio on your way home from work, you heard someone say, “Everything you need to know about a company should be either in the balance sheet, income statement, or statement of cash flows. If you can’t find it in there, it is not worth knowing! Besides that, the notes are too complex to understand!” Do you agree with this assumption?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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