ACCA SBR ^INT Syllabus B. The Financial Reporting Framework - Chapter 3—Financial Statements And The Reporting Entity - Notes ^{8 / 18}

The objective of financial statements (to provide information about an entity's assets, liabilities, equity, income and expenses that helps users assess the prospects for future net cash inflows and management's stewardship of resources

Going concern is assumed.

The reporting entity is an entity that is required, or chooses, to prepare financial statements. It can be a single entity or a portion of an entity or can comprise more than one entity. A reporting entity is not necessarily a legal entity.

Determining the appropriate boundary of a reporting entity is driven by the information needs of the primary users of the reporting entity’s financial statements

Only two statements are mentioned explicitly:

• The Statement of Financial Position 

• The Statement(s) of Financial Performance

• The rest are "other statements and notes"

Financial statements are prepared for a specified period of time and provide comparative information and under certain circumstances forward-looking information.

Generally, consolidated financial statements are more likely to provide useful information to users of financial statements than unconsolidated financial statements.