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The Notes to the Financial Statements May Be Worth Noting 
 
by kmhagen July 11, 2005

Reporting Entity

While the annual report is generally where you can find more textual information about the company and its activities during the year, the notes to the financial statements will generally include at least a paragraph about the company, possibly indicating when it was founded, where its headquarters are located, where it operates, and a brief description of its line of business, or purpose.

This note should clarify the company’s legal status (corporation, limited liability company, not-for-profit organization, etc.).  It may also indicate whether the company is subject to any specific regulatory agency requirements.  It should also be clear from this note whether any subsidiary companies have been consolidated in the financial statements.  And, while the financial periods being reported on are shown in the financial statements, they may be clarified here, especially is there were any major acquisitions or divestitures during the period.

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