BC454-BC455

BC454 The objective of financial statements is to provide information about the financial position, financial performance and cash flows of an entity that is useful to a wide range of users of financial statements in making economic decisions. To attain that objective, the boards try to ensure that new requirements meet a significant need and that the overall benefits to economic decision-making that would result from improved financial reporting justify the costs of providing such information. For example, the boards consider the comparative advantage that preparers have in developing information, compared with the costs that users of financial statements would incur to develop surrogate information. In this evaluation, the boards recognise that the costs of implementing a new standard might not be borne evenly by participants in the financial reporting system. However, both the users of financial statements and the entities that prepare those financial statements benefit from improve

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