The FASB stresses that the primary objective of financial reporting is to provide information useful to investors and creditors in assessing the amount,timing,and uncertainty of future net cash flows.The FASB contends that

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The FASB emphasizes the importance of financial reporting in providing information useful to investors and creditors for assessing the amount, timing, and uncertainty of future net cash flows. They believe that users pay attention to firms' accounting earnings as it improves their ability to forecast companies' future cash flows. This implies that accounting earnings are a useful measure of periodic firm performance for predicting future cash flows.

The FASB Stresses That the Primary Objective of Financial Reporting