Helen Hook is president and chief executive officer of Eastern Bay Corp., a large, diversified corporation with its head office in Halifax and its executive offices in Toronto. The corporation controls 27 other corporations in Canada, USA, and Europe. Eastern Bay’s common shares are traded on both the Toronto Stock Exchange and the London Stock Exchange. Its preferred shares are held by a group of US life insurance companies that purchased the shares in a private offering several years ago. The same insurance companies hold about half of Eastern Bay’s bonds, while the rest are held by pension plans.

Helen’s brother, Harvey, is president of Harbinger Ltd., a chain of employment offices operating in western Canada. The company was founded by Harvey Hook in 1981 after he left the personnel services division of a national consulting firm. Harvey owns 67% of the shares of Harbinger. His father, Henry, owns the other 33%. Henry has been an important source of capital for Harvey, lending Harbinger $ 175,000 at its inception and, in 1986, accepting a 33% ownership interest in lieu of repayment of the debt. Harbinger has no other major creditors, although a line of credit has recently been negotiated with the Royal Bank of Canada.

Required

Explain how the objectives of financial reporting would differ between Eastern Bay Corp. and Harbinger Ltd. Be as specific as possible.