1. Accounting Presentation
阮競賢
By: Stanley Yuen
Accounting Users

2. Objectives of Financial statement
-a very objective measurement
-give information about financial position and performance
e.g. through ratios
Through final accounts
-argue if resources is used efficiency
e.g. return on capital

3. Why people want to see financial statement?
-to see profitability
-liquidity
-earning power
-different groups of people are interested in different types of information.

4. Investors -profitability e.g. Margin Returns on capital employed
Investment ratios
-to see if they decide to investment
e.g.low dividend yield
Not to invest too much

5. Lenders -liquidity and profitability e.g. Current ratio
-to see if they can pay back the loan
-to decide if they would provide loan to them or not
-risk
-can pay interest or not

6. Management -manager e.g. director -all necessary information
-to make important decision e.g. planning

7. Suppliers/ creditors/ vendors
-liquidity
-current ratio, creditor collection period
-whether the company can pay back the amount owed
-to give credit purchases

8. Government agencies -general information for economics planning
e.g. low turnover would mean the poor economy
-for tax collection
e.g. high profit=high profit tax

9. Employees -afraid of unemployment -profitability, liquidity
-to see if they can have stable income or jobs
-promotion opportunities
-benefits, like bonus

10. Customers/ trade debtors
-long-term stability
-to have a stable supply of goods
-e.g. big customers had trade discounts in bulk sales

11. Public -general -assess employment prospects for local community
-effect of the business to the environment (environments)

12. Question to be discussed
-Each type of user has different needs and therefore requires different accounting information. You are required to identify five groups of them and explain the particular information they need. (10 marks) 94 AL Q.5b