For an item to be recognized in the main body of any financial statement, an item must meet the real definition of an element. in addition the item ,must have been measured, recorded in the books as well passed through double entry system of accounting. It's also important to note that,the information provided in the notes to the financial statements amplifies or rather explains the items presented in the main body of the statements and its usually essential to an understanding of the performance as well position of the enterprise. Information in the notes doesn't have to be quantifiable nor does not need to qualify as an element.
Work Step by Step
Further, its also important to note that supplementary information includes the information that presents a different perspective from that which is adopted in the financial statements. Its usually includes management's explanations in regards to financial management as well a discussion of the significance o that particular information.