Though accounting records and reports a company’s transactions, many different parties benefit from this information these individuals — called financial statement users — often review the information for decision-making purposes financial accounting information also helps users measure a company’s profitability and performance.
The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.
Use and users of financial statements editorial this month’s feature considers who are the users of the financial information that we as students and members. 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.
Purpose & importance of financial statements can be analyzed in the context of users of financial statements and their respective interests the objective of financial statements is to provide information about the financial position, performance and liquidity of the business. Users of the financial statements the main users (stakeholders) of financial statements are commonly grouped as follows: investors and potential investors are interested in their potential profits and the security of their investment future profits may be estimated from the target company's past performance as shown in the income statement.
There are various different users of financial statements, each with different information needs the conceptual framework lists the primary users of financial statements as: s uppliers and trade creditors are interested in information that will help them determine whether the amounts owing to them will be paid on time.
There are many users of the financial statements produced by an organization the following list identifies the more common users of financial statements, and the reasons why they need this information: company management. 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.