The notes to financial performance are an important part of the shareholders report because they ...

a.

indicate whether the auditors have certified the statements as a fair representation of the financial affairs of the fi rm.

b.

explain to what extent the generally accepted accounting principles (GAAP) were adhered to.

c.

provide information on the accounting policies, procedures, calculations and transactions underlying entries in the financial statements.

d.

are the primary communication from management to the fi rms owners.