Notice to Reader Financial Statements
What is “notice to reader financial statements”? Financial statements of a business show the financial position and performance of that business over a certain period. Generally, there are three financial statements: 1. Balance sheet: Also knows a statement of financial position 2. Income Statement: Also knows as a statement of financial performance 3. Cash flow statement Notes are often attached with these financial statements, however, if you are a small business the management may decide to not prepare them. In all cases, a balance sheet and an income statement must be attached. Notice-to-reader refers to a notice, signed by a registered CPA firm, cautions the readers of these financial statements about the level of involvement of the professional accounting firm. Further, you can use either Accounting standards for private enterprises (ASPE), or International Financial Reporting Standards (IFRS) in Canada. Read more about Notice-to-Reader Financial Statements here . Who ...