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OBJECTIVES OF FINANCIAL REPORTING

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goal of presenting useful information to financial statement users so that proper decisions can be made. Data presented should be comprehensive so that a good understanding of the entity's activities is possible. Financial information should aid in the evaluation of the amounts, timing, and uncertainties of cash flows. Also, financial reporting should furnish information about the firm's economic resources, claims against those resources, owners' equity, and changes in resources and claims. Financial reporting should provide information about financial performance during a period and management's discharge of its stewardship responsibility to owners. It should likewise be useful to the managers and directors themselves in making decisions on behalf of the owners.