OBJECTIVE OF FINANCIAL STATEMENTS

The objective of financial statements is to provide information about the financial posi-

tion, performance, and changes in financial position of an entity that is useful to a wide range

of users in making economic decisions such as an investor deciding whether to sell or hold

an investment in the entity, or employees assessing an entity’s ability to provide benefits to

them.

Users include present and potential investors, employees, lenders, suppliers, and other

trade creditors, customers, governments and their agencies, and the public. Because investors

are providers of risk capital, it is presumed that financial statements that meet their needs will

also meet most of the needs of other users.