公司的股东需要财务信息来做出投资决策。他们将能够决定是否持有、购买或出售股票(Christensen, Cottrell & Budd, 2016)。
银行等公司的资金贷款人对公司支付债务的能力感兴趣(Powers & Needles, 2012)。
Users of the financial reports
The financial report provides significant information to users of the financial report. The financial report not only prepared on the basis of accounting standards and rules but also provided significant information that meets the needs of the users of the financial reports. The users of the financial statements are as follows:
Investors and owner
The stockholders of the companies need financial information to make investment decisions. They would be able to take decision of whether they will hold, buy or sell the shares (Christensen, Cottrell & Budd, 2016).
The investors need financial information to determine and evaluate the profitability or loss of the company. They need information to evaluate the future performance of a company.
The management of the companies need financial information to understand the liquidity, cash and profitability during a specific period of time. The information helps them to make financial and operational decisions.
The lenders of the funds to the companies such as banks are interested in the ability of the company to pay the liabilities (Powers & Needles, 2012).