This thesis theoretically examines the fundamental financial statements and presents an empirical analysis of the notes to the financial statements for selected companies classified as micro and small enterprises, as they represent a significant factor in the economic growth of the Republic of Croatia. Financial statements are crucial for understanding a company's financial performance and operations. These statements include the balance sheet, income statement, statement of comprehensive income, cash flow statement, statement of changes in equity, and notes to the financial statements. Micro and small enterprises are required to prepare only the balance sheet, income statement, and notes to the financial statements. The empirical research of the notes to the financial statements for the year 2022 for three selected companies in the hospitality industry was conducted using case study, analysis, and comparison methods. The research results indicate that the notes are of high quality in terms of content, providing added value to the users of financial statements and facilitating the understanding of the data presented in the balance sheet and income statement. Furthermore, full compliance with Croatian Financial Reporting Standards, on which the notes are based, was observed.