Information about the nature and amounts of a reporting entity’s economic resources and claims can help
users to identify the reporting entity’s financial strengths and weaknesses. That information can help users
to assess the reporting entity’s liquidity and solvency, its needs for additional financing and how successful
it is likely to be in obtaining that financing. Information about priorities and payment requirements of
existing claims helps users to predict how future cash flows will be distributed among those with a claim
against the reporting entity.