Financial Accounting and Report Essay Example | Topics and Well Written Essays - 1000 words

Financial Accounting and Report - Essay Exampleunlike hirers of fiscal statements and their needs, the legal and regulatory influences on financial statements, the implication of the regulations for the users, the role of the accounting and reporting standards and how the education needs of different user groups vary.The first course of instruction of people who use financial study is investors. Investors who go away capital to a company are concerned about the levels of risk, and return from their investments. They need financial instruction to help them decide whether they should buy or sell shares of a particular company. They are also fire in information that modifys them to assess the ability of a company to pay cash dividend. The second category of people is employees. Employees need to know whether their employer is financially stable. They use this data to evaluate the employers ability to mechanism a fair remuneration package, provide retirement benefits and be able to offer employment chances (Lasher 2008, pp. 64). Lenders use financial information to access the ability of a company to promptly pay both the head word and interest on loans. Suppliers and other trade creditors are interested in financial information to enable them to determine whether the amount owed to them will be paid without default. Customers are interested in financial information to determine the life span of an green light, especially when they have a long-term association with an enterprise much(prenominal) as the presenting solutions to both short and long-term problems. Government and their agencies use the financial information to regulate the activities of an enterprise and to determine tax policies. They also use the information to compute national income. Lastly, the public use financial information to determine the trends and recent development activities of an enterprise to help them assess the possibility of a major(ip) economic contribution by an organizat ion (Saudagaran 2009, pp. 51-56).To determine the regulatory