Objectives of GPFRs in AASB and IASB Essay Example | Topics and Well Written Essays - 1000 words

Objectives of GPFRs in AASB and IASB - Essay Example It is to be noted that both the boards have set down the objectives of General Purpose Financial Reports on the different basis. The further sections of this report focus on the helpfulness of the objectives set down by International Accounting Standard Board to improve the general purpose financial report. There are several questions that have been raised regarding the usefulness of the objectives. A comparison of the objectives of both the Australian Accounting board and the International Accounting board is made to analyze which one of the two is better suited as objectives for the general purpose financial report. The next section deals with the meaning of general purpose financial report and helps understand the main reason why these reports are produced. General Purpose Financial Reports are prepared to focus on the requirements of users who require understanding the company’s financial status. This report provided the common information to users who cannot prepare speci fic information to meet their needs. There are a few financial entities that are authorized to prepare these reports. Since these reports are very general most of the time these reports focus on general information of the company which benefits only a few groups of people. The main users of General Purpose Financial Reports are divided into three main categories namely. Resource providers like employees, lenders, supplier, lenders, investors, etc. These groups of people are interested in knowing the financial status of the company to understand whether the resources provided are being put to efficient use and if the company is performing economically, efficiently and effectively (CPA Australia, 2002). Recipient of goods and services like consumers, customers, or any person benefiting from the goods or services provided by the reporting entity.