The Annex to the Annual Financial Statements in the Context of the
1University of Craiova, The Faculty of Economy and Business Administration
Drobeta Turnu Severin, firstname.lastname@example.org
Abstract. The ann ex is a constitutive part of the annual accounts, being a conceptual product mentioned in
the art.2 of the CE E 4th Directive. This synthetic accounting document has the role to explain or to complete
the element given by the balance sheet and the profit and lo ss account. The annex represents a valuable
instrument of infor ming and analysis for all the users of accounting information. The informative dimension
of the an nex is not limited, but the information presentation must respect the principle of true and fair view
and that of the significant importance.
Keywords: annex, annual accounts, true and fair view, Notes, synthetic accounting documents
A dimension of international accounting standardization is the process of accounting harmonization
taking place within the European Union.
This process, initiated in the `70, targets especially the harmonization of the member states’
accounting systems, in this sense being elaborated directives that must be incorporated in the national
legislation of each of the member states.
The 4th Directive has the specific objective of solving the differences regarding the structure and
format of the annual synthetic documents in the conditions in which more options that might be
reiterated by the national accounting norms are stipulated.
This directive, as document, is made out of 61 articles, grouped in 12 sections, from which Section
nr.8, titled ”Notes to the annual accounts”, mentions the minimal information the annex must give as
the synthetic accounting document.
The globalization and the insufficiency of the information given by the balance sheet and the profit
and loss account do not permit the achievement of the enterprise’s true and fair view of the patrimony,
financial situation and result. For this reason the existence of the annex as synthetic accounting
document is an informational necessity.
The position of the annex within the assembly of the synthetic documents has generated many
opinions in the specialized literature.
For some authors, „the annex is a constitutive part of the financial statements”1, for others, the
annex represents an analytical approach in the conditions in which the balance sheet and the
profit and loss account represent authentic synthetic documents.
But, we subscribe to the opinion that considers “The annex is a conceptual product, its presence
being the consequence of the putting in practice of the accounting principles, especially the
principle of the true and fair view and the principle of the significant importance (or the
The elaboration of an annex of quality means to select the information of significant importance either
for explaining or completing the elements offered by the balance sheet and the profit and loss
Within the financial statements assembly, as the opinion unanimously accepted by the specialized
literature states that the annex has a double role:
1 Ristea m., Olimid L., Calu D.A. – Sisteme contabile comparate, Editura CECCAR, Bucureşti, 2006.
2 Doinea O. – Situaţii financiare anuale- teorie şi metodologie naţională, Editura Universitaria, Craiova, 2005.