objectives of financial reporting.

the financial reporting should provide information that is useful to present and potential investor and creditors and other users in making rational investment, credit, and similar decision. the information should be comprehensible to those who have a reasonable understanding of business and economic activities and are willing to study the information with reasonable diligence. the financial reporting help present and potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective cash receipts from dividends or interest and the proceeds from sale, redemption, or maturity of securities or loans. Since investors and creditors cash flows are related to enterprise cash flows, financial reporting should provide information to help investors, creditors, and other assess the amounts,timing,and uncertainty of prospective net cash inflow to the related enterprise.the financial reporting should provide information about economic resource of enterprise, the claims to those resources (obligations of the enterprise to transfer resources to other entities and owners equity), and the effects of transactions, events and circumstances that change its resources and claims to those resources.