The conceptual framework indicates that the objective of financial reporting is to provide information about the reporting entity that is useful to present and potential investors, lenders and creditors.If you were involved in the formulation of a conceptual framework for financial reporting what would you propose that the primary objective be for financial reporting ?In other words, what is the most important objective of financial reporting in your opinion?

What to do:

Think about the implications of financial reporting on business and society overall and note what you perceive as the most important impact financial reporting has and what objective will support that impact positively.Note any problems that you see with financial reporting if this objective is not met.