Question

explain how the explanatory notes are made in the financial statements about salaries, compensations and benefits. also make an example of each one.

Answer 1

In general parlance, notes of accounts are being considered as a part of financial statements . This is done so in order to make ease to the person going through the financial statements understand how a certain value in an account or statements has arrived. We can in simple say that the notes of accounts can be also called as working notes as per our convenience.

In the given question, while considering salaries, all the amounts earned or received bey the employee from employer are taken and any deductions to be made are done according to the prevailing laws and acts and finally the et amount of salary is derived.

If we consider compensations and benefit's , almost the same kind of treatment is observed in spite of few other aspects which are also considered.like yje actual nature of loss suffered and providing compensation accordingly, when coming to benefit's it is to be carefully observed whether the person receiving the same is really qualified for the same or not.