Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements

Communication Methods in Financial Reports
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Communication Methods in Financial Reports
The city of Dothan, Alabama comprehensive financial report, 2014 and Durham, North Carolina comprehensive financial report, 2015 could benefit from the proposed statement. The two reports lack the disclosure in notes as directed in the CAFR comprehensive annual financial reports. Dothan and Durham financial reports lack important disclosures that explains the numbers found in the financial statements. For example, Dothan statement of asset and debt administration could benefit from notes to financial statements depicting vital details such as depreciation of assets, inventory valuation, accounting policies, and subsequent activities (Reeder, 2014). The additional of the notes to the published financial statements assist in explaining further the numbers in the comprehensive reports (Boyd, 2015). Financial users such as investors, analysis, and the public can use the notes to interpret the number...