Final answer:
The objective of the conceptual framework in financial reporting is to provide information that is useful both to internal management and external stakeholders, such as investors and bondholders, not primarily to internal users as the false statement suggests.
Step-by-step explanation:
The question is addressing the role of the conceptual framework in financial reporting. The false statement suggests that the primary objective of the conceptual framework is to provide financial information specifically for the company management and other internal users. However, this is not entirely accurate. While internal users certainly benefit from financial information, the conceptual framework aims to provide information that is also useful for external users such as investors, lenders, and other stakeholders.
As a company grows, the availability of information about its products, revenues, costs, and profits becomes more widely available and important to external investors, such as bondholders and shareholders. These outside investors, not knowing company managers personally, rely on accurate financial reporting to make informed decisions about providing financial capital to the firm.