Purpose of Financial Reporting under IFRS

Easy Financial Reporting Standards Ifrs Framework

The IFRS (International Financial Reporting Standards) framework is designed to provide transparency and comparability in financial statements across different jurisdictions. One of the key components of this framework is the concept of 'financial statements' which must fairly present the financial position, performance, and cash flows of an entity.

Which of the following statements is TRUE regarding the purpose of financial reporting under IFRS?

To ensure that all companies have the same accounting policies regardless of industry.

To provide information that is useful to a wide range of users in making economic decisions.

To focus solely on providing detailed tax reporting information to government authorities.

Hint

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