(a). A general purpose financial statement is a statement that is intended to meet the need of users who are not in a position to demand information that are tailored to their needs. Such information is useful to existing and potential investors.

(b). (i) Production of high quality financial statements
It involves the preparation of financial statements that have qualitative features, that is, faithful representation, error free, neutrality, understandability etc.

(ii) Preparation of user-friendly financial statements
Production of financial statements that contain necessary information assists users of those financial statements to make crucial economic decisions.

(iii) Uniformity of financial statements prepared
Financial accounting is a language of business. This language must not be different across countries of the world for it to assist international investors.

(iv) Access to international finance

(c). (i) Assists accounting standards and General Accepted practice to develop

(ii) Create a situation where accounting standards are developed piecemeal in response to specific problems or abuses.

(iii) Provides solutions to certain critical accounting issues e.g. what is an asset.

(iv) Assists preparers and auditors to deal with complex situations that are not the subject of accounting standards

(v) Strengthens the credibility of financial reporting and the accounting profession