a) Using an appropriate framework for assessing the quality of financial information, discussed four (4) likely characteristics of the financial statements which caused the Board to tear it into pieces. (8 marks)

b) The Chairman of the Board concluded that the financial statements were not prepared on accrual basis merely based on facial observation. Discuss two (2) pointers to the basis of accounting applied to the preparation of financial statements, without disclosures in the notes.

(3 marks)

c) Discuss two (2) benefits of notes to financial statements to the users of the financial statements and outline three (3) broad categories of notes to the financial statements.