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.

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.

5 Comments

SELaplana June 2, 2007 Reply

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)

deuts June 2, 2007 Reply

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

juler September 4, 2008 Reply

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

deuts September 5, 2008 Reply

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

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