Hi ,I m doing a project on objective of financial reporting ,but one of te question is heating on me and i will really appritiate if some of u can give me ur suggestion.
well ,the question is whether the stewarship and financial report should have seperae objectives or not ? Cause some of te articles has argues that the financial report is not giving useful decision making information to all users ,and creditors and inverstors are the one left off . as Andrew Lennard argued ,so i wanna know whether it should be seperated or just having one objectve. And i dnt really get what stewarship all about , is that mainly refers to managers performance?
thxz for ur time ,n i will long for the respond as soon as possible
IAS1 states that the objective of general purpose Financial Statements is to provide a structured representation about an entity’s financial performance, financial position and cash flows that is useful to a wide range of users in making economic decisions.
Financial Statements also show the result of management’s stewardship of the resources entrusted to it.
Hope the above answers your question.
By Stewardship what I understand is where the management wants to take the company. These days, the management reports of many companies specially the reports prepared by big investment companies have great detail on the managements intentions.
For your reference, I am attaching investcorp financials which are in great detail and give a whole lot about management’s ideas. With the requirements like segment reporting etc., the financials do give ideas.