the methods principles and practices used by an entity to report its financial results.
you are a loan office for a major bank and an exec from leon's has come to ask you for a loan. what informaiton on the b/s and statement of cash flow ouwld be of interest to you?
as a banker your main concern is leon's ability to repay the loan. you would be interested in whether leon's has the cash flow to support the interest on the loan and pay back the principle when its due.
Special Purpose Reports
accounting reports that are prepared to meet hte needs of specific stakeholders or a specific purpose