An NTR involves providing detailed accounting records to an accountant who then prepares the information into a compiled financial statement. There is no assurance and no presentation or disclosure requirements as outlined in Section 9200 of the CPA Canada Handbook.
Users of financial information that do not require a review or audit or the detailed disclosures that accompany such engagements. Notice to Readers financial statements are useful for many businesses in the preparation of their corporate tax return. The CRA requires the inclusion of General Index of Financial Information which is based off the preparation of a company’s financial statements. Notice to Reader financial statements are used to create financial statements to facilitate this reporting.
Other purposes could include management reporting such monthly operational or divisional reporting or cash flow projections.
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