Information about use of the entity’s economic resources
Information about how efficiently and effectively the reporting entity’s
management has discharged its responsibilities to use the entity’s economic
resources helps users to assess management’s stewardship of those resources.
Such information is also useful for predicting how efficiently and effectively
management will use the entity’s economic resources in future periods.
Hence, it can be useful for assessing the entity’s prospects
for future net cash
inflows.
Examples of management’s responsibilities to use the entity’s economic
resources include protecting those resources from unfavourable effects of
economic factors, such as price
and technological changes, and ensuring that
the entity complies with applicable laws,
regulations and contractual
provisions.
1.22
1.23
Conceptual Framework
© IFRS Foundation
A23
