Objective of Financial Reporting under IFRS Framework

Hard Financial Reporting Standards Ifrs Framework

International Financial Reporting Standards (IFRS) provide a framework for financial reporting that emphasizes transparency, consistency, and comparability. According to the IFRS Framework, the primary users of general purpose financial statements are those who are not in a position to demand reports tailored to their specific information needs. Understanding this context is essential for interpreting financial statements.

In this context, which of the following statements correctly identifies the primary objective of financial reporting under the IFRS Framework?

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

To ensure compliance with local laws and regulations governing financial reporting in specific jurisdictions.

To prioritize the interests of shareholders and provide them with relevant dividend information.

Hint

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