Its important to note that, providing information to users of the financial statements, FASB relies on the general-purpose financial statements. Normally, the intent of such statements is to provide the most useful information possible that is at the least cost possible to various users. Underlying these objectives is the notion that users usually need reasonable knowledge in regards to business and the financial accounting matters so as to understand the information contained therein.
Work Step by Step
Additionally, it means that the preparation of financial statements, a level of reasonable expertise can be assumed and therefore; this has an impact on the way as well the extent to which information is reported.