The free primary users identified by the ISAB are potential
and existing investors, lenders and
other creditors (eIFRS, 2018). The purpose of financial statements for all main
users is to provide information
about the financial position, performance and changes in financial position of a
company to give useful information for decision making (Accounting-simplified, n.d.).
In addition to that, primary users need it to assess the ability on how
effectively and efficiently management has discharged their responsibilities to
use the entity existing resources (IASPlus, 2010). The potential and existing investors put financial statement to make prediction
on their future dividends based on the profits and to find out what the
security of their investment is. They want to confirm weather the managers and
directors took care of the firm wealth (Lecture slides). It helps them to make
decisions about, whether to invest more or sell their shares in the business. Lenders
put their financial statement to estimate the ability to be repaid for all
loaned founds and connected interest charges (Bragg, 2014). They use the
information to make decisions about whether to lend more or call in a loan (Lecture slides). Lenders
can review the financial statements to assess leverage, liquidity, cash flow
and solvency (Ross, n.d.). Creditors are using financial statements to determine the credit
worthiness of the company and ensure that the company has the ability to bay
back the loan. Another reason why the creditors are interested in financial
statements is to make decision on whether they would want to offer an extra
credit to the firm.

There are also other possible users
of groups which are not included in the IASB list. These are: employees, management,
government, customers, financial analytics, competitors and wider public. Employees
need financial statements for assessing the firm’s profitability and stability.
They want to know the ability of the firm to pay wages and offer employee benefits.
n.d.). Management team use financial statements to understand the profitability,
liquidity and cash flows every month, to make operational and financing decisions
about the company (Bragg, 2014). Government needs financial statements in order to determine the company ability
to pay taxes. Customers are interesting in financial performance of the
business ability to remain its existence and preserve stability of operations (ACCOUNTINGVERSE,
n.d.). Financial analytics use financial statement to recognise any suspicious
transactions or fraud in a company. Competitors may use financial statements to
compare their financial condition with rival firms and the knowledge that they have
gained could develop strategies to improve their competitiveness (Accounting-simplified,
n.d.). Wider Public could be interesting in the financial statement performance
to assess the effect of a firm in the economy, local community and environment.

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I think that these groups are not included in the IASB’s list
of user groups because they may have find financial statements useful in a general
purpose, however they are not the groups to which general purpose of financial performance
are mainly directed. Furthermore, I think that they do not include them, because


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