The objective of financial reporting

The main objective is to provide financial information about the reporting entity to users of the financial statements that is useful in making decisions about providing resources to the entity, as well as other financial decisions.

Fair presentation

In order to provide useful information to the stakeholders of a business the financial statements must fairly present the position and performance of that business (or show a 'true and fair view'). Whilst this has never been formally defined it embodies the concepts that the financial statements are:

• compliant with relevant laws and regulations
• compliant with the relevant financial reporting framework, and
• they have applied the qualitative characteristics of the Conceptual Framework as far as possible.

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Tags:	the conceptual framework;objectives of financial reporting;users of the financial statements