Which financial reporting frameworks are considered general purpose?

General purpose financial reporting frameworks are designed to provide information to a wide range of users, such as investors, creditors, and regulators, rather than being tailored for specific needs. Both International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) fall into this category because they are widely accepted frameworks used for financial reporting across various industries and countries.

IFRS is utilized in many parts of the world and focuses on transparency and comparability of financial statements, allowing investors to make informed decisions based on the financial health of an organization. Similarly, GAAP is primarily used in the United States and provides guidelines that ensure consistency and reliability in the reporting process, catering to the needs of all stakeholders.

The choice indicating only special purpose frameworks is incorrect as special purpose frameworks are tailored for specific users and situations, such as tax reporting or internal management needs. These do not serve the broader audience that general purpose frameworks aim to address. By recognizing that both IFRS and GAAP cater to the general public's financial information needs, one can understand why they are classified together as general purpose frameworks.