Purpose of Financial Statements

According to paragraph 7 IAS 1, Presentation of Financial Statements,

The objective of general purpose financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.

Yeah, that’s right, it should be useful to a “wide range of users in making economic decisions”, and not to “an auditor in forming an audit opinion”.

You don’t make the financial statements a working paper to document your understanding of the business. Sometimes it pays when you just stick to practicality.

I hope I made myself clear.

4 Comments

  1. maybe it’s already clear to you but it’s still not clear for me….. 🙂 hehehe i just don’t understand about it… (hmmm am really a dumb one)

  2. No, maybe I made this entry to be as vague as possible….hehehehehe

  3. hahaha hehehehe go CPA… how about Auditing? scope of audit and nature of audit… game…

  4. @ Juler – hmmm, you game me an idea huh….:D let me think about it…:D

Leave a Reply

Your email address will not be published. Required fields are marked *