Types of information ?

When you read the accounting information, What type of information do you need?














User

Types of needs to accounting information

Investors/shareholders

-      Assess how effectively the managers are running the business.

-      Assess the ability to pay dividends.

-      Make decisions to buy, hold or sell ownership shares of a company.

Lenders

-      Evaluate the risks of granting credit or lending money.

-      Assess the ability to pay interest and repay the amount borrowed.

Suppliers and other trade creditors.

- Determine whether amount owned to them will be paid when due trade creditors are likely to be interested in an entity over a short period than lenders unless they are dependent upon the continuation of entity as a major customer.

Customers

-      Know if the company will continue to honor product warranties and support its products lines specially for long term plans.

Competitors

-      Compare performance

Employees.

-      Know about the stability and profitability of their employee

-      Assess the ability of entity to provide remuneration, retirement benefits and employment opportunity.

Governments, tax authorities, regulatory agencies.

-   Determine and assess taxation policies.

-   Calculate national income and statistic

-   Decide whether financial support is needed

-   Tax authority need to know whether the company complies or not. To calculate how much should they pay.

-   Regulators need to know whether the company is operating or not.

General public

-   Entities contribute to the local economy in many ways including number of people they employ and their  positions and salaries.

 

 



Comments

Popular posts from this blog

Staff authority