Objectives of Financial Reporting in Iran

Financial reporting is the best index of accountability in governmental accounting system. Accountability and transparancy of a government persuade residents to preserve the government in hardships, for instance in economic crises or political problems. This paper discusses objectives of financial reporting in Iran. There are some valuable attempts to prepare the Governmental Accounting Standards these days. Considiring complicated circumistances of public economy, public financial reporting should include fiscal, mangerial and programme accountability. Numerous users of public financial statements, as well as, their various superiorities and preferences request different approaches on public statements. In addition, lack of profitability in public economy, affects performance assessment, so public statement should convey effectiveness, efficiency and productivity of public services. In this essay some beneficial conflicts among agents, government’s authorities, and residents will be highlighted. I hope that the paper will impact improving public financial reporting in Iran.