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Version date: 9 April 2024 - onwards
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Objective of financial statements (paragraph 9) (paras. BC17-BC18)

BC17 The IASB decided to align the objective of financial statements in IFRS 18 with paragraph 3.2 of the Conceptual Framework. The objective of financial statements is to provide financial information about a reporting entity's assets, liabilities, equity, income and expenses that is useful to users of financial statements in assessing the prospects for future net cash inflows to the reporting entity and in assessing management's stewardship of the entity's economic resources.

BC18 This objective does not refer to providing information about cash flows. Nonetheless, IFRS 18 includes some general requirements for financial statements that apply to the statement of cash flows. IAS 7 sets out requirements for the presentation and disclosure of cash flow information. Paragraphs 9 and 20 of IFRS 18 do not refer to cash flow information. This is because financial performance includes cash flow information, as explained in paragraph 1.20 of the Conceptual Framework.

Comparing proposed amendment...