Footnotes take eye-straining hours to read and to decipher, but the footnotes are rich with critical information. It’s where companies can bury or downplay bad news, dubious assumptions, executive perks, and pending disasters.Now, I•Metrix subscribers can read footnotes instantly and thoroughly.
The new feature in I-Metrix is called “Related Notes” and saves enormous amounts of time uncovering important disclosures in annual and quarterly reports.
Simply right click on a balance sheet item and you’ll see a list of every relevant footnote sentence in the entire document. In the example below, a click on “Commitments and Contingencies” in the Environmental Tectonics Corporation’s 2007 10-K form uncovers significant disclosures that could substantially impact the company’s financial position.
The I•Metrix Related Notes feature automatically discards unimportant details and presents only the relevant footnote sentences. If you want to read more, just click on the bulleted sentence to link directly to its original location in the 10-K form.
Here’s another example. We clicked on the item “Goodwill” (always good for an accounting debate) in the 10-K form from PHH Corporation. A complete list of Related Notes was automatically culled from footnotes throughout the document that relate to the Goodwill number. We learn three important facts: the types of calculations used to determine the value of Goodwill, the company segments recording Goodwill and for what purpose, and recent acquisitions contributed to Goodwill.
The Related Notes feature is unique to I•Metrix. It’s the latest in our ongoing product improvements. We are always interested in feedback from subscribers, so please share your ideas on any features or improvement with the I•Metrix product team.
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