Financial Statement report Essay Example | Topics and Well Written Essays - 1500 words

Financial Statement report - Essay casefulThe users of pecuniary statements are the various stakeholders of a society that are concerned with the friendships performance, progress and position during a fiscal year. The financial statements should provide useful selective training to the relevant users and stakeholders of the company with respect to their specific needs. The principal(prenominal) users of financial statements and their needs are discussed belowThis is the most important group interested in the financial performance, financial position, financial adaptability, cash generation and cash flow status of the company. The shareholders and investors invest their money into the company and need the cultivation from financial statements to asses the companys performance in terms of managing and utilizing their investments and generating profit out of it.The lenders and creditors of a company are interested in the companys position in terms of liquidity and solvency. Th e financial statements of a company should provide relevant information to its various lenders and creditors so as to enable them to analyze the companys ability to reconcile its short and long-term liabilities and obligations.The regulatory authorities and government agencies are concerned with the full and clear apocalypse of information in the companys financial statements. The government ensures that the company prepares the financial statements in the light of relevant rules and regulations. ... The disclosure of relevant information can strengthen the customer trust in the company. frequent Public and AnalystsGeneral public and analysts could be considered as the companys prospective investors or they may approach the companys financial statements to provide the information regarding the companys investment and profitability potential to the investors. They are concerned with the companys financial position and performance to analyze the in store(predicate) prospects of t he company.INTERNAL USERSManagementThe companys management is in addition among the major users of financial statements. They need to draw useful information from the financial statements in order to realize the companys revenues and their share in the companys profitability. Apart from that, they also need information from financial statements to analyze the result of their performance throughout the year and make provisions regarding the future.EmployeesThe employees are also the internal users of the companys financial statements. They are the one contributing their efforts in the companys performance and profitability. They need information from financial statements to evaluate how the company is compensating them for their efforts as compared to its overall profitability.NECESSARY QUALITIES FOR FINANCIAL STATEMENTSThe financial statements should contain the following qualities so as to provide maximum useful information to the various stakeholders of the companyUnderstandabili tyThe financial statements should be readable and understandable for all its targeted users. All the information and disclosures included in the financial statements should be well-presented to dish up the