Supporting Schedules

Definition

The financial accounting term supporting schedules refers to an approach used to disclose information appearing on a company's financial statement.  Supporting schedules will provide additional detail on the assets and liabilities of the company.

Explanation

Supporting schedules are one of several ways to communicate material information that is supplementary to assets and liabilities appearing on the company's balance sheet.  These schedules are often tables of data that provide an insightful breakdown of an asset or liability.  Unlike parenthetical explanations and cross references, which appear in the body of the balance sheet, a schedule will appear alongside the statement's notes.

As is the case with all supplementary information, disclosure is necessary if the numbers appearing on a statement are thought to be misleading without its inclusion.  A common example of a supporting schedule would be the detailed classification of property, plant and equipment; breaking this information into subcategories so the reader understands how accumulated depreciation applies to each.  Schedules can also be used to provide insights into the revenues and income associated with various business segments.

Example

Company A is a conglomerate, managing six operating business segments. Transactions among these segments include cost allocations as well as inventory transfers.  The revenues and net income associated with each segment appears in the schedule below:

(Dollars in Thousands) Revenue Net Income Revenue Net Income
Business Segments        
Industrial and Transportation 2,566 575 33.6% 33.7%
Health Care 1,263 400 16.6% 23.4%
Consumer and Office 1,114 244 14.6% 14.3%
Safety, Security and Protection Services 926 196 12.1% 11.5%
Display and Graphics 936 199 12.3% 11.7%
Electro and Communications 820 186 10.8% 10.9%
Corporate and Unallocated 1 -93 0.0% -5.4%
Total Company 7,626 1,707 100.0% 100.0%

The category of corporate and unallocated includes investment gains and losses as well as litigation and environmental expenses.

Related Terms

parenthetical explanations, notes to financial statements, cross references and contra items, financial statements