Is supplementary information required by GAAP?

What is required supplemental information?

Required supplementary information (RSI) is information that a designated accounting standard-setter (e.g., FASB, GASB) requires to accompany the basic financial statements. RSI is not part of the basic financial statements.

Are used to convey information required by GAAP or to provide further explanation?

Notes are used to convey information required by GAAP or to provide further explanation.

What are GAAP requirements for preparing financial statements?

GAAP guidelines require businesses to prepare financial statements according to the matching principle using the accrual basis of accounting. Because the objective is to ensure that expenses match with revenues, expenses are reported in the period in which the expense is incurred regardless of when the expense is paid.

Are notes to financial statements required by GAAP?

In addition to the amounts that are reported on the face of the financial statements, US GAAP requires that additional information be provided as notes to the financial statements. To alert the readers of these important disclosures, each financial statement is required to make reference to them.