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Access the FASB Concepts Statements to answer this question. What is the objective of financial reporting?

Access the FASB Concepts Statements to answer this question. What is the objective of financial reporting?

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Answer #1

In context of the FASB concept statements, the objective of financial reporting by business enterprises are mentioned below:

- To make investors able to make useful decisions relatedto the financial health of the enterprise.

- To cater to investor's and creditor's interest in getting knowledge of the returns they can expect from their investment in the enterprise.

- To divulge informatton regarding a firm's financial resources, the source of these resouces and the changes in them.

- To enable decisions useful to the economy.

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