Discussion Paper on conceptual framework first sets forth objectives of financial reporting.
As other conceptual frameworks state, Discussion Paper states that objectives of financial reporting is to provide information useful for decision making by investors and other financial statement users.
More specifically, Discussion Paper says that the information should be focused on an entity's financial positions and performance. It also emphasizes that earnings is important to communicate with users the entity's past performance, so that users can establish their own prospects for the entity's future performance and, therefore, the entity's firm value.
Discussion Paper states that the principal role of financial reporting is to provide information about the entity's financial history rather than fortune tale. Based on such information, investors make their own investment decision at their own risk.