Analyzing Company Disclosures

Apart from the financial statements, the foot notes in the annual reports disclose a great deal of information about the accounting policies and transactions. Many disclosures related to significant policies are also made under the section ‘Management Discussion and Analysis’. 

The footnotes of a US GAAP or IFRS reporting company will discuss many important things such as its inventory accounting methods, accounting for long-lived assets, tax treatment, and its accounting treatment of leases.