OR (c) Discuss the limitations of general-purpose financial reporting.

Limitations of General-Purpose Financial Reporting: General-purpose Financial Reporting does not and cannot provide all of the information that existing and potential investors, lenders and other creditors need. Those users need to consider pertinent information from other sources, for example, general economic conditions and expectations, political events and political climate, and industry and company outlooks;General-purpose Financial Reporting is not designed to show the value of a reporting entity; but they provide information to help existing and potential investors, lenders and other creditors to estimate the value of the reporting entity; andGeneral-purpose Financial Reporting is not primarily directed to other parties, such as regulators and members of the public other than investors, lenders and other creditors.