Purpose of Financial Statements
According to paragraph 7 IAS 1, Presentation of Financial Statements,
The objective of general purpose financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users in making economic decisions.
Yeah, that’s right, it should be useful to a “wide range of users in making economic decisions”, and not to “an auditor in forming an audit opinion”.
You don’t make the financial statements a working paper to document your understanding of the business. Sometimes it pays when you just stick to practicality.
I hope I made myself clear.
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5 Responses to “Purpose of Financial Statements”
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maybe it’s already clear to you but it’s still not clear for me….. :-) hehehe i just don’t understand about it… (hmmm am really a dumb one)
Comment posted on 2nd June 2007
No, maybe I made this entry to be as vague as possible….hehehehehe
Comment posted on 2nd June 2007
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Comment posted on 9th June 2007
hahaha hehehehe go CPA… how about Auditing? scope of audit and nature of audit… game…
Comment posted on 4th September 2008
@ Juler - hmmm, you game me an idea huh….:D let me think about it…:D
Comment posted on 5th September 2008