Answer
General debt obligations, lease contracts, pension arrangements as well stock option plans are four items for which disclosure is mandatory in the financial statements. The reason for disclosing these contractual situations is that these commitments are of a long term nature, are often significant in amount and are very important to the company's general health.
Work Step by Step
Additionally, disclosing detail of a balance sheet is important since it gives the interested parties an idea of the company's performance or rather financial performance.
