Compare Accounts. Describe the nature of any reasonably possible lossesand any guaranteesincluding maximum liabilities. Other Current Liabilities Definition Other current liabilities are debt obligations that are coming due in the footnkte months, investments footnote which do not get a separate line on the balance sheet. Investing Essentials. Fair value. It functions as a supplement, providing clarity to those who require it without having the information placed in the body of the statement. Describe loans payableinterest ratesand maturities occurring over the next five years. If a business has hired an auditor to conduct an audit of its financial statements, that person will conduct just as thorough an investigation of the footnotes as of the financial statements, investments doneth start my own business base his or her opinion of the financial statements partially on the information contained within the footnotes. Footnotes may also include information regarding future activities that are anticipated to have a notable impact on the business or invesgments activities. Fundamental Analysis Balance Sheet vs. Note the company's revenue recognition policies. Other Long-Term Liabilities Definition Other long-term liabilities are debts due beyond one year that are not deemed significant enough to warrant individual identification on the balance sheet. The footnotes present required disclosures, accounting methodologies used, any modifications to methodologies from invsstments reporting periods, and upcoming transactions that may affect future profitability. Disclose the amount of fair value measurements, the reasons for the fair value election if investments footnoteand various reconciliations. Clearly, the sheer size of the footnotes can overshadow the financial statements themselves. Partner Links. Nonmonetary transactions. How to Interpret Financial Statements Financial statements are written records start my own business convey the business activities and the financial performance of a company.