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Main focus is to comply with government regulatory authorities.
For prospective Investors so that they could know that position of the company and consider investment with the company.
According to me,
As per my understanding, below are the main objectives for external financial reporting:
1. For common public to know the performance of the organisation and thereby take decision whether to invest or not.
2. For government to review the financial stability, growth, etc of the organisation.
3. For the government and the public to know the contributions made by the entity to the public as a whole for e.g. Common Social Responsibility projects, pollution control initiatives, etc.
primary objective is to fulfill the requirement of Security exchange commission requirement.
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