GASB Concepts Statement No.3,Communication Methods in General Purpose External Financial Reports that Contain Basic Financial Statements,states that
A) notes to the financial statements may include management's objective explanations.
B) required supplementary information must be objective and may not include predictions or subjective assessments.
C) disclosure in the notes is not an adequate substitute for recognition in the financial statements.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements given in options A, B, and C are correct as per GASB Concepts Statement No.3. The statement explains the communication methods that can be used in general purpose external financial reports that contain basic financial statements. Option A highlights that notes to financial statements may include management's subjective explanations. Option B emphasizes that required supplementary information must be factual and may not contain predictions or estimations. Option C states that disclosure in the notes cannot replace recognition in financial statements. Thus, all options are correct.