In a recent annual general meeting of Thrifty Tyres Ltd, one of the shareholders stated: ‘the objective of general purpose financial reports is to make the directors and management accountable’. The other shareholders at the meeting cheered and agreed. 

Required

As a director of Thrifty Tyres Ltd, you feel obligated to respond to the shareholders to ensure they understand the objective of general purpose financial reports as defined in the Conceptual Framework. Your response includes the following points:

(a) Explain two suggested alternative objectives for general purpose financial reporting.

(b) Identify the objective for general purpose financial reporting adopted in the Conceptual Framework

(c) What information about management and the governing board would be useful to users as outlined in the Conceptual Framework?