The objective of financial statements

To provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.

Information about financial position is primarily provided in the balance sheet. Information about performance is primarily provided in income statement. Information about changes in financial position is held primarily in cash-flow statement.

‘Financial statements prepared for this purpose meet the common needs of most users’. They show the results of stewardship and accountability of management.