Income Statement Elements The FASB’s Statement of financial Accounting Concepts (SFAC) No.1 indicates that the primary purpose of financial reporting is to provide information about a company’s performance via measures earning. The income statement is of primary importance in this endeavor because of its predictive value, a qualitative characteristic defined in SFAC No.2. Income reporting also has value as a measure of future cash flows, as a measure of management efficiency, and as a guide to the accomplishment of managerial objectives.