foot⋅note
[foo
t-noht] 
noun, verb, -not⋅ed, -not⋅ing.| 1. | an explanatory or documenting note or comment at the bottom of a page, referring to a specific part of the text on the page. |
| 2. | a minor or tangential comment or event added or subordinated to a main statement or more important event. |
| 3. | to add a footnote or footnotes to (a text, statement, etc.); annotate: to footnote a dissertation. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
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| foot·note (fŏŏt'nōt') n.
To furnish with or comment on in footnotes. |
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Footnote
Foot"note`\, n. A note of reference or comment at the foot of a page.Cite This Source
Footnote
Additional information provided in a company's financial statements. Footnotes report the details and additional information that are left out of the main reporting documents, such as the balance sheet and income statement. This is done mainly for the sake of clarity because footnotes can be quite long, and if they were included, they would cloud the data reported in the financial statements.
Investopedia Commentary
It is very important for investors to read the footnotes included in a company's periodic reports. Footnotes contain important information on such things as the accounting methodologies used for recording and reporting transactions, pension plan details and stock option compensation information - all of which can have material effects on the bottom-line return that a shareholder can expect from an investment in a company.
Related Links
How To Read Footnotes - Part 1
How To Read Footnotes - Part 2: Evaluating Accounting Risk
How To Read Footnotes - Part 3: Evaluating The Board Of Directors
See also: 10-K, Annual Report, Balance Sheet, Bottom Line, Fundamental Analysis, Income Statement
Also spelled: footnotes, foot notes, foot note
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footnote
- A detailed explanation of an item in a financial statement. Footnotes are nearly always located at the end of a statement. For example, a company is likely to attach footnotes to its annual report to expand on the depreciation and inventory valuation methods used by its accountants. Many financial analysts consider footnotes the most important information in an annual report. Also called note.
Copyright © 2003. Published by Houghton Mifflin.
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