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 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

GASB Concepts Statement No.3 states that disclosure in the notes is not an adequate substitute for recognition in the financial statements. This means that simply disclosing information in the notes is not enough, and that information should also be recognized in the financial statements themselves. Choices A and B are incorrect because they are not stated in GASB Concepts Statement No.3.