General purpose financial statement – meaning

A general purpose financial statement is the statements that is intended to meet the needs of users who are not in position to demand information that are tailored to their needs. such information is useful to existing and potential investors.

In other words general financial statement are annual financial statement which are intended to show entity’s financial position and performance to the public. The entity management prepares general purpose financial statements, expecting that the information therein will be useful to shareholders and general public.

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