FDNACCT UNIT 1 Part 3 Users of Accounting Information

Part III - Users of Accounting Information

Users of Accounting Information

The rights or claims to the assets of a business may be subdivided into rights of creditors and rights of owners thus making creditors and investors the primary users of financial statements.

Business Stakeholders

Anyone that is concerned with the operations of a business (includes employees, customers, government, managers, etc.)

Securities and Exchange Commission

A regulatory agency that oversees the financial information provided by publicly listed companies

Primary Users of Accounting

1. Investors, 

2. Lenders, 

3. Service Providers & Other Creditors.

Internal users of Accounting

Owners 

Managers

Employees 

External users of Accounting

• Tax Authorities

• Regulatory Agencies 

• Customers

• Suppliers 

• Employee unions

• Trade Associations.

• Financial Intermediaries (such as financial analysts, stockbrokers, mutual fund companies, credit-rating agencies)