1. What are the major objectives of financial reporting?
Who are the users of financial reporting?
What type of information will each user group need? Why?
What are the major objectives of financial reporting?
The major objectives financial reporting is to present useful information to financial statement users, so that proper decisions can be made. It allows users of financial reporting to better understand entity's activities. Financial information aids in the evaluation of the amounts, timing, and uncertainties of cash flows.
Also, financial reporting provides information about the firm's economic resources, claims against those resources, owners' equity, and changes in resources and claims. Financial reporting provides ...
Major objectives of financial reporting, and who are the users?