• A list of significant controlled entities;
• The fact that a controlled entity is not consolidated in accordance with paragraph 21;
• Summarized financial information of controlled entities, either individually or in groups, that are not consolidated, including the amounts of total assets, total liabilities, revenues, and surplus or deficit;
• The name of any controlled entity in which the controlling entity holds an ownership interest and/or voting rights of 50% or less, together with an explanation of how control exists;
• The reasons why the ownership interest of more than 50% of the voting or potential voting power of an investee does not constitute control;
• The reporting date of the financial statements of a controlled entity when such financial statements are used to prepare consolidated financial statements and are as of a reporting date or for a period that is different from that of the controlling entity, and the reason for using a different reporting date or period; and
• The nature and extent of any significant restrictions (e.g., resulting from borrowing arrangements or regulatory requirements) on the ability of controlled entities to transfer funds to the controlling entity in the form of cash dividends, or similar distributions, or to repay loans or advances.

(1 mark for each 5 point explained = 5 marks)

Notes to the financial statements provides more information that contained on the face of the financial statement and this enhances the understandability of the financial statements.

Notes to the accounts provides information on:

• Accounting policies applied to the preparation of the financial statement.
  Under the accounting policy, the preparer provides information on the accounting policies that have been applied in the preparation and presentation of the financial statements. Accounting policies usually covers the basis of accounting, recognition and measurement, depreciation, foreign exchange transaction etc. In the section, a statement of compliance to standards and legislations are made. For example, a statement indicating the financial statements are prepared in compliance with IPSAS.
• Extracts or schedules
  These notes provide the details of amounts shown on the face of the financial statement. It provides a disaggregated information on values disclosed on the face of the financial statement.
• Additional explanations
  These notes provided further information about events and transactions that are not captured on the face of the financial information but provides relevant information on the sustainability of service potential of the entity. Under the cash basis, information that are reported on other basis but cannot be shown on the face of the financial statement are reported in the notes to the financial information.

a) Assets by major class, showing separately the investment in other sectors;
b) Liabilities by major class;
c) Net assets/equity;
d) Total revaluation increments and decrements and other items of revenue and expense recognized directly in net assets/equity;
e) Revenue by major class;
f) Expenses by major class;
g) Surplus or deficit;
h) Cash flows from operating activities by major class.