The notes are consider integral to financial statements. The statements themselves are a quantitative presented; the notes are usually verbal elaborations, although notes can be numerical in nature. Notes explain or expand on the financial statements. For example, the notes may explain a change in accounting policy or sick leave and vacation policy.
Notes to the Financial Statements are additional notes and information added to the end of the financial statements to supplement the reader with more information. Notes to Financial Statements can include information on debt, going concern, accounts, contingent liabilities or contextual information explaining the financial numbers (e.g. to indicate a lawsuit).