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For those unfamiliar, we might be surprised that some users like the company’s suppliers too can be a user of the financial statement. Append below is a listing of the user group who will consistently use the financial statements for their own needs:
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POSSIBLE USES OF THE FINANCIAL STATEMENTS BY DIFFERENT USERS: |
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Equity Investor group: Assessing their investment |
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Loan Creditor group: Assessing the ability to make repayment of loan |
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Employee group: Assessing security of employment |
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Analyst-adviser group: Assessing their investment |
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Business contact group: For the suppliers: likelihood of future supply and for the customers: reliability of future supply |
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Government: Collection of tax and for economic statistics |
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Public: Assessing impact on local economy. |
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