Exercise: Basic Elements of Financial Reports
Most financial reports contain the following list of basic elements. For each element, identify the person(s) who prepared the element and describe the information a user would expect to find in each element. Some information is verifiable; other information is subjectively chosen by manage- ment. Comment on the verifiability of information in each element.
1. Management discussion and analysis
2. Product/markets of company
3. Financial statements
4. Notes to financial statements
5. Independent accountants' report