The FASB and IASB have stated that the purpose of financial reporting is to meet the needs of current and potential investors and creditors. Look at the income statement for The Gap, Inc., presented in the chapter as Table 3.4.

A. What needs of current shareholders does this statement seem to meet?
B. Does this kind of format contain the information that would be most of interest to:

a. A labor union of the company?

b. The state in which The Gap has its headquarters?

Explain your answers.