What it is
The notes are where most compiled and reviewed statements fall short. This outline gives starter wording for the notes a private company’s US GAAP statements usually need, with bracketed fill-ins, so the policies describe what the entity actually does.
Note 1 covers the nature of operations, Note 2 the significant accounting policies (basis, estimates, cash, receivables and credit losses, inventory, property, leases, goodwill, revenue, income taxes, concentrations, fair value, subsequent events) and the later notes cover receivables, inventory, property, leases with a maturity table, debt with scheduled maturities, income taxes, equity, retirement plans, contingencies, related parties, going concern and subsequent events. A block of nonprofit notes follows.
When to use it
- Preparing notes for a compilation, review or audit of a private company.
- Updating a prior-year note set for new standards such as credit losses or leases.
- Setting up a not-for-profit’s notes for net assets, liquidity, functional expenses and endowments.
What’s inside
- Note 1 nature of operations and a full Note 2 of significant accounting policies
- Tables for receivables, inventory, property, lease maturities and debt maturities
- Prompts for income taxes, equity, retirement plans, contingencies and related parties
- Going concern and subsequent events notes
- Nonprofit notes: net assets, liquidity and availability, functional expenses, contributions receivable, endowments
Standard cited
This template follows US GAAP (ASC 235, 326, 842, 606, 740, 850, 855, 958). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use.
Questions
Is this a disclosure checklist?
No. It is an outline with starter wording. It does not cover every required disclosure, so use a current disclosure checklist for completeness.
Can a compilation omit the notes?
Under AR-C 80 a compilation may omit substantially all disclosures if the report says so and the omission is not, to the accountant’s knowledge, designed to mislead. Statements that include disclosures need them to be complete for the framework.
Which note covers going concern?
ASC 205-40 requires management to evaluate whether substantial doubt exists within one year after the statements are issued or available to be issued, and requires disclosure in specified cases. The template gives a note shell.
Related templates
- GAAP Disclosure Checklist (Private Company, Short Form)
- Disclosure Checklist: Leases (ASC 842) and Revenue (ASC 606), Short Form
- Compilation Report and Management Letter Shells (AR-C 80)
Last updated 11/05/2026. All free templates.