Any actual impairments (losses or reductions of value) related to long-lived assets should be reflected in the financial statements and should be explained here.
Business and Credit Concentrations
If the company has a large proportion of its accounts receivable concentrated in a small proportion of customers, this fact will be disclosed here. There may also be a mention of how management is managing its credit, to mitigate its risk of loss.
Stock Transactions
This note would include details of purchases and sales of stock by: the President, Directors, Administrators or trustees, account inspectors and majority stockholders.
Stock Option Plan
Disclosure here could include the vesting period for employees or officers, exercise price, terms, date of grant, and the number of options granted, exercised, forfeited, and expired.
Earnings per Share
Net income per share should be reported before dilution, and fully diluted, taking into account the shares from stock options and warrants, calculated using the treasury stock or other method.
Extraordinary Items
Extraordinary items include any material event that is not part of a company’s ongoing line of business, and can include sales of assets, lines of business, investments, or subsidiaries. Casualty losses, and the results of pending litigation could also be extraordinary events. Extraordinary items can have a significant effect on the financial statements and need to be taken into account for any type of comparisons or analyses. These items and their effects should be fully disclosed here, and if necessary, pro forma statements of results before extraordinary items should be presented.
Subsequent Events
Subsequent events are events that occur after the accounting period has been closed out and the financial statements have been prepared, but before they are issued. If there are any subsequent events that could have a material effect on the figures reported for the company’s economic and financial position, they should be disclosed here. If no material subsequent events occurred, this should also be indicated.