A company elects to present a supplementary schedule on the detail of general and administration expenses, the total of which is shown in the income statement.
Full Disclosure Principle
A supplementary schedule on the detail of general and administration expenses is a breakdown of the total amount shown in the income statement for these expenses. This schedule is typically used to provide more detailed information about the expenses that make up this category and can help users of the financial statements gain a better understanding of the company’s operating expenses.
The general and administration expenses category can include a wide range of expenses, such as salaries and wages for administrative personnel, rent on office space, utilities, office supplies, and other expenses that are not directly related to producing or selling the company’s products or services.
By providing a detailed breakdown of these expenses, the supplementary schedule can help users of the financial statements understand how the company is allocating its resources and identify areas where expenses might be reduced or eliminated to improve profitability. It can also provide a basis for comparison with other companies in the same industry or sector.
Overall, presenting a supplementary schedule on the detail of general and administration expenses can provide greater transparency and help investors and other stakeholders make more informed decisions about the company’s financial performance and prospects.
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