GASB Concepts Statement No. 3, defines methods of presenting information in financial reports. Concepts Statement No. 3 states that:
A) notes to the financial statements may not include management's objective explanations.
B) required supplementary information should be objective but may also include predictions or subjective assessments if management deems it necessary for understanding of the financial statements.
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

Concepts Statement No. 3 states that the notes to the financial statements are intended to enhance the understanding of items appearing in the financial statements but are not a substitute for recognition when a transition or event can be measured with sufficient reliability.