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Unformatted text preview: be inappropriate. More seriously: to come up with the answer to that
question, first of all the question of what the purpose of financial reporting is, should be
answered. The answer to that question is an essential building block, if not the
fundament, of the framework, an essential part of the set of assumptions etc.; the
framework cannot be built without it! Naarden, march 2007. P. A. Pieterse van Wijck. All rights reserved. The purpose of financial reporting has its origin in the function of an entity, which is in
essence to convert resources into products for exchange in a market. The purpose of
financial reporting follows as being reporting (obviously in financial, or, monetary terms)
by the entity on, i.e. providing a view of, the outcome of its conversion and exchange
process. The entity reports to those who have provided resources. Different resource
providers will have different levels of interest in the fi...
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- Spring '14