Disclaimer: The following notes are based on a fictitious company and the numbers have no bearing on any real data. Note 1: Significant Accounting Polices The financial statements of ABC Company have been prepared in agreement with current accounting rules and regulations, and are compliant under GAAP. ABC Company is a parent company, and all reporting rules and regulations have been adhered to in the reporting of ABC Company's subsidiaries. ABC Company and all subsidiaries use the same accounting methods. Individual columns that do not total within the financial statements and related data are due to differences in rounding. Note 2: Inventory The ABC Company values its inventory at…show more content… Note 8: Lease Obligations ABC Company and all subsidiary companies have current lease obligations that are contained in one lease. ABC Company recognizes the lease as an operating lease and has accounted for the lease through the appropriate expensing. The lease obligations are recognized in each subsidiary's financial statements as a capital lease and related assets are treated as asset purchases. Note 9: Earnings per Share (EPS) The weighted average of outstanding shares that were used to calculate earnings per share was 856, 742, and 899 for the years ending December 31, 2011, 2010, and 2009. We also calculated the diluted earnings per share for the same years. Basic earnings per share are calculated by means of the weighted average of shares outstanding. Note 10: Long-Term Debt The total amount of long-term debt contained in the financial statements includes debentures, foreign currency obligations, and debt that have been reclassified from short-term debt. The conditions of reclassification are due to condition changes that were unforeseeable when the short-term debt commenced. The conditions appear in the Management Discussion and Analysis section of the financial statement and are also thoroughly discussed in the notes to the balance sheet. Note 11: Employee Pension Obligations ABC Company has pension obligations
