The IASB and FASB boards have agreed that the objective of general purpose financial reporting is to provide
A)financial information about a company that is useful to external users in making decisions in their capacity as capital providers
B)mainly cash flow information about a company that is useful to external users in making decisions in their capacity as capital providers
C)financial information about a company that is useful to internal users in making decisions in their capacity as capital custodians
D)financial information about a company that is useful to government regulators in making decisions in their capacity as capital markets monitors

Question

Quizplus · Accepted Answer

The objective of general purpose financial reporting is to provide financial information about a company that is useful to external users in making decisions in their capacity as capital providers. This includes investors, creditors, and other stakeholders who provide capital to the company. The financial information should be useful in assessing the company's ability to generate cash flows and in evaluating the company's financial position, performance, and prospects.

The IASB and FASB Boards Have Agreed That the Objective