UNVEILING THE SIGNIFICANCE OF GENERAL PURPOSE FINANCIAL STATEMENTS

Abstract

In the complex and dynamic realm of finance, General Purpose Financial Statements (GPFS) serve as pivotal documents, offering a comprehensive insight into an organization's financial health. Comprising the income statement, balance sheet, statement of changes in equity, and cash flow statement, these statements cater to a diverse set of stakeholders, providing transparency and facilitating informed decision-making. This article explores the purpose, components, and significance of GPFS for investors, creditors, regulators, and internal management. It also addresses the challenges and evolving standards in financial reporting, emphasizing the role of International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in ensuring consistency and comparability across global markets.