Question

From the annual report of FAR Ltd and in addition, 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 FAR Ltd's report is a GPFR and if the objectives of GPFR are achieved by FAR Ltd?

Annual Report: https://www.far.com.au/wp-content/uploads/2020/04/FAR-Annual-Report-2019_SPREADS_V1.pdf

Answer 1

DEFINITION

A general purpose financial report is a general report that shows all of the financial information that pertains to a business. This is done to meet all of the needs of the readers, rather than those of a specific group of readers, such as investors, shareholders, business executives or budget planners

DESCRIPTION

General-purpose financial statements are issued throughout the year to aid investors and creditors in their decision making process. A set of general-purpose financial statements includes a balance sheet, income statement, statement of owner's equity/retained earnings, and statement of cash flows.

OBJECTIVES

To provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.

The primary purpose of the Conceptual Framework was to assist the IASB in the development of future IFRSs and in its review of existing IFRSs. The Conceptual Framework may also assist preparers of financial statements in developing accounting policies for transactions or events not covered by existing standards

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.