Under the IFRS Framework, what general information is useful for the decision making needs of lenders and investors?

Question

Quizplus · Accepted Answer

Information and changes in information relating to the entity's resources and claims against those resources are useful for the decision making needs of lenders and investors as it provides insight into the company's financial position and ability to generate future cash flows. Information prepared on the cash basis of accounting may not provide a complete picture of the company's financial performance. Financial performance resulting from a company's operating activities may be useful but is not the only information needed. Information on the company's equity and share structure may be relevant but is not as important as information related to the entity's resources and claims against those resources.

Under the IFRS Framework, What General Information Is Useful for the Decision