Excello Corporation’s basic financial statements for the year just ended have been prepared in accordance with GAAP. During the current year, management changed the accounting method for computing depreciation, a major competitor constructed a new plant in the area, three separate lawsuits were brought against the corporation that are not expected to be settled for two years or more, and the corporation continued to use an acceptable revenue recognition principle that differs from that used by most other companies in the industry. Also, after the end of the year but before the statements were issued, Excello issued additional shares of common stock. Excello recently applied for a large bank loan, and the bank has requested a copy of the financial statements. Excello’s auditors have prepared several notes, some quite lengthy, to accompany the financial statements, but Excello’s management does not think the loan officer at the bank would understand them and therefore submits the statements without the notes. The bank accepts the statements as submitted. Which of the events described here should be included in notes to the financial statements? Do you think it is acceptable to delete notes when submitting financial statements to third parties? Explain your position.