C describe the importance of financial statement notes and supplementary information —including disclosures of accounting policies, methods, and estimates— and management’s commentary;

Question 1

The importance of Footnotes (explanatory info on BS and IS line items)

Answer 1

Estimate details: amount, timing, uncertainty

Discuss presentation basis: Fiscal period covered, inclusion of consolidated entities

Management info: Methods, assumptions, estimates

Additional info: Business acquisitions or disposals, legal actions, employee benefit plans, contingencies and commitments, significant customers, sales to related parties, segments of the firm

Question 2

Alias’ for Managements Commentary

Answer 2

Managements report, operating and financial review, *management’s discussion and analysis

Question 3

Importance of MD&A which discusses

Answer 3

Nature of the business, past performance, future outlook

Some parts are unaudited

Also:

Inflation effects and material price changes
Impact of off balance sheet obligations, contractual obligations (purchase commitments)
Accounting policies that require significant judgement by management

Forward-looking expenditures and divestitures