The Information Function
This chapter considers a third function of accounts: the information function. The fi nancial statements perform the information function when their role is to provide information that aids decision-making. The IASB and FASB endorse the information function when they defi ne the objective of fi nancial reporting as ‘to provide fi nancial information about the reporting entity that is useful to present and potential . . . capital providers’. In order to adopt distributive justice as the objective of fi nancial reporting, it is simply necessary to change the nature of the decision to be taken, from investment decisions to decisions relating to the just distribution of the entity’s wealth and income. When this objective is adopted the accounts may be said to perform the just information function.