True Blood Report:-
For the betterment of corporate financial reporting, The American Institute of Certified Public Accountants (AICPA) formed a study group under the chairmanship of Robert M. True Blood. The study group visited various places and studied more than 500 corporations, professional firms, national and international organisations.
The Study group conducted meeting and interviewed of various executives and submitted report in October, 1973.
On the basis of this study, the study group recommended twelve objectives of financial reporting.
Objectives:-
- To provide useful information for financial decision
- To provide information to investors and creditors for prediction, comparison and evolution.
- To give priority to users who have limited resources, authority and capability and rely on financial statements as principle source of information.
- To furnish information to users for predicting, comparing and evaluating the earning capacity of business concern.
- To supply information to the management by which resources can be utilised in such a manner that goal of enterprise achieve.
- To give factual and interpretative information about transactions and events.
- To provide financial position statement with current value.
- To provide income statement for predict, compare and evaluate earning capacity of business concern and if changes in value should be reported separately.
- To provide information that makes the economic decision beneficial for investors.
- To provide financial information which increase the reliability of users.
- To provide Information for evaluating earning and effectiveness of resources in achieving predetermined goal of the enterprise.
- To provide report on financial statements about business activities which have effect on society and social environment.