A reporting entity is defined by SAC 1 as:
...all entities ...in respect of which it is reasonable to expect the existence of users dependent on special purpose financial reports for information which will be useful to them for making and evaluating decisions about the allocation of scarce resources.(SAC 1.40)

Question

Quizplus · Accepted Answer

SAC 1 defines a reporting entity as those entities, including economic entities, in respect of which it is reasonable to expect the existence of users who rely on general purpose financial reports for information that will be useful to them for making and evaluating decisions about the allocation of scarce resources. The definition does not specifically mention "special purpose financial reports" but rather "general purpose financial reports."

A Reporting Entity Is Defined by SAC 1 As