LUBS 1235 1.3 Identify the main users and their interests in accounting information

What is the Investors/Owners relationship to the organisation and what does their interest in accounting information include

Relationship: Invested capital in the organisation

Interest: Profit earned, dividends receivable, and security of their investment

What is the Investment Analysts relationship to the organisation and what does their interest in accounting information include

Relationship: None directly with the organisation

Interest: Advise clients on buying/selling shares; assess risk and potential returns

What is the managers relationship to the organisation and what does their interest in accounting information include

Relationship: Appointed by investors to run the organisation

Interest: Daily operational information, comparison with past performance, and guidance on organisational decisions

What is the lenders relationship to the organisation and what does their interest in accounting information include

Relationship: Loaned funds to the organisation

Interest: Ensure interest will be paid on time and the loan is secure

What is the suppliers relationship to the organisation and what does their interest in accounting information include

Relationship: Supply goods or services to the organisation

Interest: Decide whether to extend credit (pay for goods at a later date) and whether the organisation can pay debts on time

What is the customers relationship to the organisation and what does their interest in accounting information include

Relationship: Purchase goods or services from the organisation

Interest: Ensure the organisation can supply goods reliably in the foreseeable future

What is the competitors relationship to the organisation and what does their interest in accounting information include

Relationship: Compete against the organisation

Interest: Assess strengths and weaknesses of the organisation

What is the public relationship to the organisation and what does their interest in accounting information include

Relationship: Affected by the organisation and local communities

Interest: Employment opportunities, social responsibility, and the environmental impact of profits

What is the government and their agencies relationship to the organisation and what does their interest in accounting information include

Relationship: Regulation and tax collection

Interest: Ensure correct tax is paid on time and compliance with regulations

What is the employees relationship to the organisation and what does their interest in accounting information include

Relationship: Present or future employees of the organisation

Interest: Financial viability of the organisation, job security and continued employment