The stated objective of FRS 3 is to 'require reporting entities failing within its scope to highlight a range of important components of financial performance to aid users in understanding the performance achieved by a reporting entity in a period and to assist them in forming a basis for their assessment of future results and cash flows'.

Discuss, giving your reasons, which components of financial performance are of particular importance and consider whether accounts prepared in accordance with the Companies Acts and Accounting Standards achieve all parts of the stated objective. Your discussion should not be confined only to those statements specifically identified by FRS 3.