The reporting entity concept was adopted by the accounting profession in June 1992 in an attempt to reduce the reporting requirements imposed on certain entities by the application of Accounting Standards. Under this concept, “reporting entities” are required to prepare a financial report in compliance with all Accounting Standards and Urgent Issues Group Consensus Views (referred to as general purpose financial reports (GPFRs)). “Non-reporting entities”, however, have the option to prepare special purpose financial reports (SPFRs) in compliance with those Accounting Standards and Urgent Issues Group Consensus Views considered necessary to enable the financial reports to meet the special purpose needs of the users
