The Notes to The Financial Statements: Importance and Analysis of the Scale Their Data Meet Requirements: Case of Albania

 Florinda Zherri1*, Melita Zherri2, Flutura Kalemi3
 1*Agricultural University of Tirana, Albania
2Department of Risk Analysis, Large Taxpayer Office, Tirana, Albania
3Agricultural University of Tirana, Albania


The notes to financial statements are an integral part with a significant importance, reinforced by accounting standards and legislation and law. Meanwhile the main financial statements are presented in a synthesized way and the information must not contain unnecessary information, the notes role consists not only in explaining the main voices of these statements. Standards and legislation make requirements about the notes preparation, on the other hand neither of them do not require a unique format. This study intends to emphasize the notes role and importance by bringing to focus the most important theories and then by analyzing practical data to understand the scale entities meet the requirements into Notes presentation. The analysis intends to answer the following question: “In what scale do Notes to the financial statements meet the law and standards requirements?”. Using text-mining, a significant number of the notes to the financial statements of entities operating in Albania, were examined. The financial statements used in this paper were retrieved from entities that operate as Private Limited Companies (PLC) in Albania. The research results indicate that mostly of the entities examined do not meet the minimum requirements of standards and law about the data published, moreover in some entities statements notes were not present at all. Based on the research results, paper provides recommendations to increase the interest and quality on preparing and presenting the notes.

Keywords: Notes to the financial statements, financial statements, accounting standards, text mining, accounting law requirements.
JEL Codes: M41, M42

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