Answer
The objective of financial reporting is to provide a snapshot of the sources and allocation of money within an entity or an economy towards interested parties. Interested parties, in this case, include the government (to determine taxation or even in planning for the allocation of public funds) or the share/stakeholders in a company or an organization. Financial reporting facilitates decision making through the provision of monetary reports.
Work Step by Step
However, different users such as shareholders, members, employees or even creditors have different uses for financial reports.
