Question

From the latest annual report of The GPT Group Australia to providing examples, define, describe and critically discuss the objectives of general purpose financial reporting (GPFR)? Which objective appears to have been included within existing conceptual framework project? and identify if The GPT Group report is a GPFR and if the objectives of GPFR are achieved by it?

Answer 1

The objectives of general purpose financial reporting (GPFR)?

In view of the information needs of the users of general purpose
financial reports identified in the preceding paragraphs, the position
adopted in this Statement is that the objective of general purpose
financial reporting is to provide information to users that is useful
for making and evaluating decisions about the allocation of scarce
resources.

When general purpose financial reports meet this objective they will
also be the means by which managements and governing bodies
discharge their accountability to the users of the reports. The
provision of information for accountability purposes is an important
function of the process of general purpose financial reporting,
particularly in relation to public sector entities and non-business
entities in the private sector. However, the rendering of
accountability by reporting entities through general purpose
financial reporting is encompassed by the broader objective of
providing information useful for making and evaluating decisions
about the allocation of scarce resources, since users will ultimately
require the information for resource allocation decisions.

conceptual framework

The concept of compliance appropriate for general purpose financial
reporting depends substantially on the types of information which
are identified as being encompassed by general purpose financial
reporting. If general purpose financial reports include non-financial
information about an entity's performance, information about nonfinancial dimensions of compliance would be relevant to users.
Because the boundaries of general purpose financial reporting will
continue to evolve, the concept of compliance currently adopted in
this Statement is consistent with the boundaries of general purpose
financial reporting reflected in the current reporting practices of
most reporting entities. Accordingly, the definition of compliance
included in this Statement refers to adherence to externally-imposed
requirements in respect of which non-compliance may have, or may
have had, a financial effect on the reporting entity. As such,
reporting about compliance as defined in paragraph 5 would entail
disclosure of the nature and probable financial effect of any noncompliance by the reporting entity with externally-imposed
requirements which has occurred and which is relevant to
assessments of the reporting entity's performance, financial position,
or financing and investing