A method/ technique that an entity uses when preparing disclosure notes, considering the purpose of disclosure- i.e., providing users of financial statements with information that can be used to assess its performance and cash flows. This should enhance the quality and clarity of information presented on the face of its financial statements. Furthermore, the information, along with the notes, should be organized in a logical manner and clear wording, using tabular formats, cross references, etc.

Disclosure techniques consist of the following:

• Parenthetical explanations.
• Notes to financial statements (explanatory notes).
• Cross-references.
• Contra amounts (valuation allowances).
• Supporting schedules.