The conceptual framework states that it is concerned with general purpose financial reports. What are general purpose financial reports?

Question

Quizplus · Accepted Answer

General purpose financial reports are intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs. They are widely disseminated and provide information about an entity's financial position, performance, and cash flows that is useful in making economic decisions. Option A is incorrect as it refers to special purpose financial reports. Option C is incorrect as general purpose financial reports are intended to meet the needs of users. Option D is incorrect as there is a definite definition for general purpose financial reports.

The Conceptual Framework States That It Is Concerned with General