BC71 The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. To attain this objective, the Board seeks to ensure that an IFRS will meet a significant need and that the overall benefits of the resulting information justify the costs of providing it. Although the costs to implement a new IFRS might not be borne evenly, users of financial statements benefit from improvements in financial reporting, thereby facilitating the functioning of markets for capital and credit and the efficient allocation of resources in the economy.
BC72 The evaluation of costs and benefits is necessarily subjective. In making its judgement, the Board considered the following:
(a) the costs incurred by preparers of financial statements;
(b) the costs incurred by users of financial statements when information is not
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