Understanding the needs of users of public sector to identify the classes of users of financial reports and their information needs of financial statements . Lo 11 describe different users of financial statements and their needs(example:owners managers,lenders,suppliers,government employees,customers) choose 3-4 users . Shareholders use financial statements to assess the risk and return of their investment in the company and take investment decisions based on their analysis prospective investors need financial statements to assess the viability of investing in a company. Financial accounting for external users financial accounting provides information for external users financial accounting information is used for decision making by external users, such as investors and creditors. The external users of accounting information fall into six groups each has different interests in the company and wants answers to unique questions the groups and some of their possible questions are:.
But, who exactly are these users of financial statements what information do they need the users of accounting information include: the owners and investors, management, suppliers, lenders, employees, customers, the government, and the general public. The needs of users of financial information forms of financial information are to users in their usefulness of the financial statements for different types of . Firstly, i describe the different users (stakeholders) of finance statements and their needs and assess the implications for users of financial statement then, i explain the legal and regulatory influences on financial statements preparation like companies acts. Task 2 lo 11 describe different users of financial statements and their needs(example:owners managers,lenders,suppliers,government employees,customers) choose 3-4 .
12 things you need to know about financial statements both have different ways of reporting asset values, depreciation, inventory, to name a few directly reflected in a company's . Best answer: the users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public they use financial statements in order to satisfy some of their different needs for information. In other words, external users need financial information about companies in order to support their financial decisions the ultimate goal of financial accounting is to compile business transactions and other input documents like invoices and sales receipts in the form of general purpose financial statements that can be understood by external . Describe the different users of financial statements and their needs in from hr 1023 at sma rizvi textile institute. There are so many people using the accounting information for so many diverse purposes, thus, the purpose of financial statements is to cater for the needs of the users that could lead them to make better financial decisions.
It has the ability to describe the financial health of the entities that have been mentioned all these different financial statement have their respective . Financial statements are written records of a business's financial situation they include standard reports like the balance sheet, income or profit and loss statements, and cash flow statement. Users of financial information and their informational needsusers of accounting information are either internal or external to the organization these users need information to help them make informed or reliable decisions or judgements with regards to the organization. The managers of the company use their financial statement analysis to make intelligent decisions about their performance for instance, they may gauge cost per distribution channel, or how much cash they have left, from their accounting reports and make decisions from these analysis results.
Separate accounting and financial reporting standards are essential because the needs of users of financial reports of governments and business enterprises differ due to their unique operating. The implication for users of financial statements accounting essay need to prepare their statements in accordance with gaap users of financial statements . Describe the different users of financial statements and their needs a) five users of company financial statements there are various internal and external users of company financial statements. The financial ratios of two different companies may be compared to see how they match up against each other, but each company may aggregate all their information different from each other in order to draw up their accounting statements.
Financial accounting and accounting standards describe the essential characteristics of accounting 2 identify the major financial statements and other means of . There are different kinds of users of financial statements the users of financial statements may be inside or outside the business the users of financial statements use financial statements for a large variety of business purposes and their ability to understand and analyze financial statements helps them to succeed in the business world. The main items that interest this type of user are the financial statements the accounting process involves a number of procedures that are completed in certain steps describe the different .
The users of accounting information and their needs published on january 20, the purpose of financial statements is to cater for the needs of the users that could lead them to make better . 1 describe the different users of financial statements and their needs 1 14 explain how different laws/regulations are dealt with by accounting and reporting standards 1 21 explain how the information needs of different user groups vary 4 3. The notes typically describe each item on the balance sheet, income statement, and cash flow statement in further detail need financial statements to ascertain .