The notes to the financial statements explain the information presented in the financial statements. This includes significant accounting policies which were used to produce the financial statements that one sees in the $10-K.$ This also includes significant matters that do not require traditional recognition in the financial statements, such as non$-$cash transactions that do not qualify for being disclosed on the statement of cash$-$flows. Also, the notes disclose management estimations and matters of judgment that were used in the construction of the financial statements. $$

True

False