Stakeholders and their information requirement. Internal Users External Users Management Employees Customers Lenders Government Investors Information Users.

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Presentation transcript:

Stakeholders and their information requirement. Internal Users External Users Management Employees Customers Lenders Government Investors Information Users of Accounting Information Stake holders

Management Management needs information to review the firm’s (a)Short term solvency; (b)Long term solvency; (c)Activity and (d)Profitability To take the future decisions. Users of Accounting Information Stake holders

Employees Users of Accounting Information Stake holders Employee need’s information about the stability and profitability of the employer. They needs the information related to firms ability to pay remuneration, retirement, benefits and other opportunity.

Customers Customers have the interest in the information about the continuation of an enterprise. Especially when the customer have developed a taste and long term involvement with the specific product. Users of Accounting Information Stake holders

Government Government and their agencies are interested in the allocation of resources. They require information in order to regulate the business and for the purpose of calculation of national income and other statistics. Users of Accounting Information Stake holders

Investor Potential Investors Potential investors need information to judge the prospect of an enterprise and to determine whether they should buy the shares or not. Users of Accounting Information Stake holders

Investor Present Investor These investors require information to judge the prospects of their business and to determine whether they should buy, hold or sell the shares. Users of Accounting Information Stake holders

Lenders Lenders are interested in information like (a)Safety of money; (b)Regular assured returns; (c)Amount of lending and (d)Firms ability to repay the debt on time. Users of Accounting Information Stake holders