Preparation of notes on the financial statements

In accordance with PBU 4/99 "Financial statements of an organization" (Russian Accounting Standards), we identify several sources of official data that disclose the financial position, financial results and changes in the financial position of the company:

  • balance sheet
  • income statement
  • notes to the balance sheet and the statement of financial results, consisting of an explanatory note, as well as separate forms of reports.
  • the auditor's report or other related information

Such information is open to a wide range of users; it allows to make economic decisions. The users of financial statements include:

  • owners of the company, evaluating the financial prospects of the company in the future and the possibility of subsequent profit;
  • investors providing their funds who want to get an idea of ​​the amount of dividends due, about the acceptable risks associated with investments;
  • employees of the company, as well as candidates who must be sure that the company as an employer can pay wages on time and in full and provide social benefits;
  • lenders who want to be convinced that the company will repay the loan or loan debt on time;
  • contractors of the enterprise (consumers and suppliers) interested in establishing business relations;
  • tax and financial authorities that need information to check the correct calculation of the tax base, as well as to control the timely transfer of taxes and fees to the budget;
  • Government bodies interested in obtaining data in order to adjust the financial and economic activities of companies to develop a policy in the tax area.

PBU 4/99 "Financial statements of the organization" (Russian Accounting Standards) contains a requirement for reliable and full disclosure of information in the statements. The following important factors of the company's performance depend on the quality and volume of the provided data:

Requirements for the quality of reporting apply to all forms and types of reporting information, including the notes on the financial statements. Information is considered significant if omission, misstatement or masking can affect the decisions of the main users of the financial statements.

While cooperating with companies, we realized that the content of the explanatory notes on the financial statements are determined by the organizations independently, and can be adjusted depending on the strategic goals. We believe it is extremely important to entrust the preparation of the explanations to an experienced professional with analytical skills and extensive experience, because the notes on the financial statements:

  • allows you to unload reporting forms, also to simplify their perception;
  • disclose additional material information and financial and economic activities of the company;
  • provide comparable data for a number of reporting periods;
  • reflect analytical information to assess the financial stability of the company.

The information in the notes on the financial statements is included in the financial statements, is subject to mandatory audit and is considered open. The financial statements, explanations to it, as well as the auditor's report are available for viewing and downloading to all interested users on the website of the state information resource for accounting (financial) statements (GIR BO).

Emerging Markets Group's accountants and auditors have an extensive experience in writing informative the notes on the financial statements that help to develop an accurate, reliable view of the financial position as well as the financial results of interested users.

Natalya Polukeeva
Head of the Accounting and Tax Department
Maria Rumiantseva
Deputy Head of the Accounting and Tax department
Anna Fadeeva
Lead Auditor