SAC 2 (Objectives of General Purpose Financial Reporting)requires that general-purpose financial reports disclose information that is:
A)Relevant to the assessment of profit,funding and investing,and compliance.
B)Relevant to the assessment of financial and social performance,financial position and funding and investing and includes information about compliance.
C)Relevant to the assessment of performance,financial position and funding and investing,including information about compliance.
D)Relevant to the assessment of performance,financial position and cash flows.
E)None of the given answers.

Question

Quizplus · Accepted Answer

Based on the options provided, the closest answer to the objectives of general-purpose financial reporting as per the IASB's Conceptual Framework would be:
3. Relevant to the assessment of performance, financial position, and funding and investing, including information about compliance.
This option aligns with the objective of providing information that is useful in assessing the entity's resources and claims against the entity (financial position), the changes in those resources and claims (performance), and the entity's cash flows (funding and investing activities). It also includes information about compliance with laws and regulations, which can affect the entity's financial stability and future prospects.
Therefore, the full answer to the input question is:
The objectives of General Purpose Financial Reporting as per SAC 2 require that general-purpose financial reports disclose information that is relevant to the assessment of performance, financial position, and funding and investing, including information about compliance. This information helps users of the financial reports to make informed decisions about providing resources to the entity and to understand the entity's financial health and compliance with relevant laws and regulations.

SAC 2 (Objectives of General Purpose Financial Reporting)requires That General-Purpose