Information about an entity’s resources, obligations and other claims against
the entity, and about changes in those items, also helps users of financial
statements to assess how efficiently and effectively the entity’s management and
governing board have discharged their responsibilities to use the entity’s
resources.10 That assessment provides further input into assessments by users of
the entity’s prospects for future net cash inflows. Such information is also
useful for decisions by existing investors, lenders and other creditors who have
the right to vote on, or otherwise influence, management’s actions.