BC435 The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions. However, the benefits derived from information should exceed the cost of providing it. The evaluation of benefits and costs is substantially a judgemental process. Furthermore, the costs do not necessarily fall on those who enjoy the benefits. For these reasons, it is difficult to apply a cost‑benefit test in any particular case. In making its judgement, the IASB considers:
(a) the costs incurred by preparers of financial statements;
(b) the costs incurred by users of financial statements when information is not available;
(c) the comparative advantage that preparers have in developing information, when compared with the costs that users would incur to develop surrogate information; and
(d) the benefit of better economic decision‑making as a result of impro
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