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people needed the financial information for many reason
The need of financial information is based on the necessity to analyse the current financial status to help understand ones's stucture and helps to set startegies and make better work decisions and goal prosses
For any business and for the people who run it, the importance of accurate financial Infromation cannot be underestimated. Some of the most important financial statements that are imperative for an organization of any scale are: Income Statement, Balance Sheet, Statement of Stockholders’ Equity, Cash Flow Statement and Statement of Comprehensive Income. The numbers revealed through these financial statements play an immense role in making decisions, planning strategies, determining success, estimating failures, and telling the world the story of the company.
financial information will be help the management to evaluate and analyse the financial conditions and the operating progress of the firm. It also help to take better decisions by the top management and owners.
Financial information is the important sources of information to all the users of accounting information management, owners, debtors, creditors, employees, government agencies, financial analysts and evaluates the org. performance.
Chinese-English Dictionary Enable Select Search My Words
Based on who would be using the financial satatements, for insance
Board of director to assess the management performance and determine the compensation
Creditors: to assess company's ability to repay principle amount and interest associated withy loan
Tax departments: income tax
Government : compliance with regulations, and laws
Potentienal Investors: to value a company
People need financial information to take their financial decision based on that to avoid uncertainties and difficulties
