Conceptual Framework

Financial reporting assignment one Qn a) Other than shareholders, identify tetrad groups which will have an interest in the financial statements of an entity, and study and contrast the needs of such users with the needs of shareholders. According to the method of accounting Standards Board (ASB), under the Statement Of Principles (SOP), Chapter 1 on the intent of financial statements, the primary purpose of financial statements is to provide discipline about the financial performance as well as the financial position of an entity that is priceless to a wide hunt down of users in making business and economic decisions. (Geoff B., 2002 ) By valuable or rather -- useful, it simply means that the information allows users to charter judgements and evaluate and consequently make expedient economic decisions. We should distinguish that there are several groups of users internal and away -- of financial statements and each of them varies in their objectives and thus requires different information to be derived from the financial statements. (Allister,Mike,Matthew,Greg, )In this essay, however, I will only be rivet on five main groups of users namely the shareholders (as stated in the question), employees including management, lenders, supplier and other trade creditors, and finally the customers.

Other external users include the government and their agencies as well as the public. source of all in vagabond to conduct any similarity -- it is imperative for us to be aware that the shareholders, as in the question, refer to both the present investors (owners or existing shareholders) as well as potential investors. These investors agree, by law, to provide the agreement with financial resources in exchange for future returns. Yet, they do non manage the society; control of an entity in general -- is the certificate of indebtedness of managers. Hence, these investors or shareholders need statistical data and report in order to decide whether to invest in a company and how much to invest.... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full essay, wisit our page: write my essay .