Users of financial information and their informational needs Essay Example for Free

Users of pecuniary discipline and their informational inevitably EssayUsers of accounting information ar either internal or external to the organization. These users deprivation information to help them make informed or reliable decisions or judgements with regards to the organization. Different conventions have different demands for the financial information contained in a set of accounts. Information needs of internal usersThese includeManagement This stratum is do up of the senior employees who run the organization on a day- to- day basis. They argon interest in information much(prenominal) as, Finance of the organization (working capital)The growth prospects (value of shares and dividends)Employees This is the group of workers in the organization made up of existing potential and past employees. The members of this group are concerned with job security and hereafter prospects. Therefore, they need information to assess the companys profitability, liquidity and gr owth prospects. Employees need information more or less The financial state of the organization ( for their salaries) The growth and stability of the organization ( new investments ) to ensure continuity of employment. Profitability.Others are informational needs of external users includingCustomers Those who buy from the organization either for cash or on credit are interested in The profitabilityThe growth and stability ( new product lines)Customers will also need information or price so they can assess whether the company is overcharging them or not.General worldly concern This group includes the taxpayers, the consumer, social groups such as environmental societies and pressure groups such as the mediaorganizations. Each soulfulness group informational needs depend on its own particular interests. They require information on one-year Reports (including financial statements) social costs to ascertain the effects and influence of operations on the society and the environment.G overnments This group includes all government or government linked governance such as tax authorities ( internal revenue service ) local authorities and the department of Trade and Industries. The investment regulatory torso are also included in this group. This group requires information to assess whether companies have complied with the relevant mandate and also to generate statistical measures to help them to assess and form macroeconomic policies. They require information such asFinancial statements Payroll summaries Income tax deductions and social security contributions.