FINANCIAL STATEMENTS UNDERSTANDABILITY BASED AN EXPLANATORY NOTES

Abstract

The present article is the result of the observation, analyses and personal conclusionsover the development of the IFRS at global level, their impact over the national and internationalcompanies all over the world and, nevertheless, the informational inputs from the FinancialStatements which must be defined by the level of their transparency, relevance and comparability.The authors’ intention through this article was to define the transparency of the FinancialStatements imposed by the General Framework, IFRS, IAS, IFRIC, SIC, guides of interpretation,case studies and conclusions. In which way the Financial Statements could be transparent andrelevant when 4 of the 5 components of the Financial Statements are flooded by numbers that haveno meaning for those with no specific skills and knowledge? The answer is given by IFAC throughthe Accounting Policies and Explaining Notes. It’s a matter of economic general knowledge andknow-how concerning the IFRS area of interest and also the skills of the accounting professionalsto turn the numbers into simple, comprehensive and relevant explanations, in such matter that, afterthe lecture of the financial statements, any user may make the best economic decisions.Accurate presentation, financial statements, financial position, performance, cash flows,accounting policies and explaining notes economic decisions