Final answer:
The 'Summary of Significant Accounting Policies' is an essential part of the financial statements, outlining a company's accounting principles, aiding in interpreting financial data, and ensuring comparability.
Step-by-step explanation:
The "Summary of Significant Accounting Policies" is a integral part of the financial statements (FS). This section provides an overview of the accounting policies and principles that a company adheres to in preparing its financial statements. These policies include how the company recognizes revenue, values inventory, depreciates assets, and other critical accounting practices. As such, it's essential for users of the financial statements to understand the company's accounting policies to accurately interpret the financial data presented.