Page 15 - Finac1 Test 1 slides

THE CONCEPTUAL FRAMEWORK

Objective of general purpose financial

reporting

• Financial statements should present useful

information

• For:

• Investors and lenders - both existing and potential

• Much narrower than internal reporting

• Purpose of useful info

• Decisions about buying / selling / holding entity’s equity /

debt

• Through information on amount, timing and uncertainty

of returns

15