Who uses financial information?
Many groups of people are interested in the published accounts of a company. The information they provide may influence future decisions. For example:
- lenders will be looking at the solvency of a business
- rivals are interested in monitoring the profits earned by competitors
- banks can use them to make lending decisions
- government (HMRC) use financial information to calculate tax payments
- owners will look at financial statements to help them make decisions
- employees will use them to ensure their jobs are secure