Does the local government in Norway have the financial reports and communication tools to show and explain to citizens, the impacts of the decisions they have made – and where the money come from? – Transparency and accountability?
The objectives of financial reporting are determined by reference of the users of GPFR (general purpose financial reports) and their information needs. As a general priciple, financial reports should communicate information that is relevant to the decision-making and accountability needs of users. In fact, accountability and decision-making may be viewed as the overriding objectives form which all of the other objectives flows (IFAC, 1991).
An objective principal source of information of financial statements is to serve primarily those users who have limited authority, ability or resources to obtain information and who rely on financial statements as their source about the economic activities.
