Notes to Consolidated Statements provide supplementary information to consolidated financial statements and are considered an integral part of the financial report. They must be read as thoroughly as the financial statements themselves!
They can be separated into three major categories:
Summary of Accounting Policies. Provides an overview of major Generally Accepted Accounting Principles (GAAP) used by a company in the preparation of its financial statements (Exhibit 4.7).
Explanatory Notes. Offers a detailed overview on a number of supplementary financial metrics, including:
Financing and debt
Employee benefit plans
Supplementary Information Notes. Provides additional details about a company’s operations, including:
A listing of reserves for an oil and gas company
Breakdown of unit sales by product line
Breakdown by geographic segments
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS|
|SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES|
|Nature of business
The Company primarily franchises and operates McDonald’s restaurants in the food service industry. The Company also operates Boston Market and Chipotle Mexican Grill (Chipotle) in the U.S. and has a minority ownership in U.K.-based Pret A Manger. In December 2003, the Company sold its Donates Pizzeria business.All restaurants are operated either ...