A public sector financial Report is the represent of the financial position from transactions conducted by a public sector entity. General purpose financial reporting is a remedy to provide information about the financial position, performance and cash flows of an entity that is useful for a huge number of users (wide range of users) in making and evaluating decisions about the allocation of resources needed by an entity in its activities to achieve goals.

Specifically, the objectives of public sector financial reporting is to provide relevant information in decision making, and demonstrate accountability of the entity for the resources entrusted, by the way:

• Provide information about resources allocation and use of financial resources or financial.
• Provide information on how the entity to fund its activities and meet its cash needs.
• Provide useful information to evaluate the ability of entities in funding its activities and fulfill the obligations and commitments.
• Provide information about an entity’s financial condition and changes therein.
• Providing aggregate information useful for evaluating the performance of the entity in terms of services, efficiency, and goal achievement.