Does the purpose of the income statement, Balance Sheet, and Statement of cash flows change based upon the frame of reference of the user of reports (i

The purpose of a financial statement is to fairly present the financial position of the company including the results of operations at a point in time. In a word, no, the purpose does not change, but the level of assurance presented will depend on the needs of the company. Assurance is defined as the amount of responsibility a CPA will attest to when the financial statement is completed.

The format might change depending on the requirements of the reader of the financial statement. There are several levels of reporting which speak to complexity and detail (a compilation, a review or an audit). The reader may require a level of information and assurance in order to accomplish the task required by the company.

Examples might include a reviewed statement for a banker, an audited statement for SEC regulated companies, or a balance sheet only for a vendor.

Further, some readers have prescribed forms which ask for only the information they need to make a decision. A good example is a bank loan application for a proprietor.