Financial Statement Disclosures for CEOs & CFOs

If you’re a Chief Executive Officer (CEO) or Chief Financial Officer (CFO), you already carry a full plate—growth goals, strategic objectives, leadership, and guiding the organization through change as the business evolves. So, when it’s time to issue financial statements, it’s understandable that disclosures may feel like the last thing you want to spend time on. After all, if the audit opinion is clean, why dig through dozens of pages of notes? 

Here’s the reality: those disclosures aren’t just fine print. They’re a strategic tool helping you make more informed decisions, communicate with confidence, and manage risk proactively. 

In this guide, we’ll break down what financial statement disclosures really mean for your business, why they matter, and practical ways to strengthen your internal process so reporting becomes smoother and far less stressful. 

What Are Financial Statement Disclosures? 

Think of disclosures as the “story behind the numbers.” Financial statements show what happened. Disclosures explain how and why it happened. 

They provide lenders, investors, and stakeholders with clarity on your company’s financial position, accounting policies, and potential risks. A revenue disclosure, for example, might explain your different revenue streams and how each is recognized—critical context for forecasting cash flow and discussing performance with those that matter. 

Disclosures often expand on guidance issued by the Financial Accounting Standards Board (FASB), which sets Generally Accepted Accounting Principles (GAAP)—the U.S. framework for financial reporting. 

Most disclosures fall into a few core categories: 

• Accounting Policies – The principles and methods your company uses to prepare financial statements. 

• Financial Instruments – Details about investments, debt, and associated risks. 

• Significant Judgments – Key assumptions and estimates made by management, such as accruals or allowances. 

• Risks – Known or potential risks that could impact future performance. 

While some disclosures are optional, most are required under GAAP. 

Why Financial Statement Disclosures Matter 

In privately held companies, transparency is often one of your strongest advantages. Financial statement disclosures support that transparency in several meaningful ways: 

1. Better Decision-Making 

Well-prepared, independently reviewed disclosures give leadership clearer information—helping you plan strategically rather than reactively. 

2. Investor & Lender Confidence 

Clear disclosures build trust with investors and lenders by providing insight into how your numbers were prepared and what risks may exist. 

The U.S. Securities and Exchange Commission (SEC) emphasizes how disclosures help investors understand the story behind the numbers. 

3. Compliance & Risk Management 

GAAP requires most disclosures. Accurate reporting protects you from compliance issues and helps your audit run smoothly. 

The CEO or CFO Role 

Even if you’re not drafting each disclosure yourself, you play a central role in the reporting process. Responsibilities typically include: 

• Reviewing for Accuracy – Ensuring disclosures reflect how your business actually operates. 

• Communicating Results – Working closely with auditors and sharing financial insights with owners and lenders. 

• Maintaining Internal Controls – Reliable disclosures depend on reliable data.

• Identifying Key Information – Material items such as litigation, debt agreements, or major transactions must be communicated to auditors. 

Engaged leadership doesn’t just support compliance; it strengthens decision-making across the organization. 

3 Ways to Improve Your Disclosure Reporting 

There’s no one-size-fits-all solution, but these strategies can significantly improve both quality and efficiency: 

1. Prioritize Documentation 

Capture significant events, agreements, and transactions in real time. A well- organized audit trail reduces last-minute scrambling and avoids missing critical data. 

2. Leverage Technology 

Modern tools—from automated reporting systems to disclosure management software—can streamline workflows and reduce manual errors. 

3. Stay Current with Accounting Tasks 

Clear disclosures start with timely, accurate books. Maintaining schedules and reconciliations helps your auditors prepare GAAP-compliant disclosures with fewer follow-up questions. 

Key Takeaways 

Financial statement disclosures are a roadmap for strategic decisions and a key part of telling your company’s financial story with clarity and confidence. 

With the right preparation—and the right audit partner—disclosures become less of a burden and more of a business advantage. 

Ready to Strengthen Your Financial Reporting? 

At BryMar CPA, we help CEOs and CFOs turn financial statements into strategic tools. Our audit team brings clarity, communication, and client-centered support to every engagement. If you’re ready for an audit team that can help you navigate disclosures, simplify reporting, and support confident decision-making, we’d love to connect.