Financial reporting that aims to accommodate the common information needs of a variety of users, rather than a specific set of users or every user’s request for information. General purpose financial reporting is much broader than a set of general purpose financial statements. It is meant to address the needs of those users who cannot require a reporting entity to directly furnish them with information. This includes the so-called primary users: investors whether currently existing or would-be/ potential, lenders and other creditors, etc. Broadly speaking, general users may include external and internal users of information. External users could be investors, lenders and other creditors, customers, suppliers, regulators, etc. Internal users may include employees and other insiders.
In general, an entity is required to provide for the information that is intended to meet the needs of the wider bracket of users in a way to achieve the objective of financial reporting and in a cost-effective manner.
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