Final answer:
Notes to the company's financial statements are essential disclosures required by U.S. GAAP that provide additional context and details to the four main financial statements. They are integral to users' understanding of the financial health of a company and are not considered nonessential information to be removed before public release.
Step-by-step explanation:
Notes to a company's financial statements are an integral part of the company's financial reporting package. These notes are required by U.S. Generally Accepted Accounting Principles (GAAP) and provide essential information that complements the core financial statements, such as the balance sheet, income statement, statement of cash flows, and statement of shareholders' equity. The notes give readers of the financial statements important context such as the accounting methods used, significant policies, detailed breakdowns of certain accounts, and other disclosures that can have a significant impact on the users' understanding and interpretation of the financial health and performance of the company.
Nonessential information, on the other hand, refers to additional details within a document or written piece that are not crucial for grasping the main idea or essentials of the presented content. However, in the context of financial reporting, all notes provided in accordance with GAAP are considered essential. Hence, the notes to the financial statements should not be confused with nonessential information; they are not removed before the financial statements are released to the public but form a crucial part of the official financial disclosures.