8.1.2016

The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential inventors, lenders, and other creditors in making decisions about providing resources to the entity.

• Objectives
• Qualitiative Characteristics
• elements
• recognition
• measurement
• financial statement
• earnings
• funds flow
• liquidity

The objectives of general purpose financial reporting focus on users of financial reporting

though management is also interested in financial information, management does not rely on general-purpose reports because the information can be obtained internally

• 1. Information that is useful to potential and existing invensotrs, lenders, and other creditors (primary users)
• 2. Information about the reporting entitys economic resources and claims against the reporting entity
• 3. Changes in economic resources and claims
• 4. Financial performance reflected by accrual accounting.
• 5. Financial performance reflected by past cash flow
• 6. Changes in economic resources and claims not resulting from financial performance

In order to be included in financial statements an element must meet criteria for recognition and possess an attribute which is relevant and can be reliability measured.