For each of the following entities, identify the objectives of financial reporting that the entity’s managers might have. In answering, consider who the stakeholders might be and which stakeholder(s)

would be most important to the managers. Explain how the objectives of financial reporting would influence the accounting choices made by the managers.

a. A public company planning to borrow a large amount of money to finance an expansion.

b. A not-for-profit curling club. Membership and usage fees, dining room charges, and pro shop sales are used to operate the club. Club members are elected to sit on the board of directors of the club.

c. A medium-sized, family-owned business. Many senior managers are family members but many shareholders (also family members) don’t work for the company.

The company has a large outstanding debt.

d. A barbershop operating as a proprietorship. The proprietor has a small business loan secured by her home.

e. The government of Canada.