483. Stakeholders

Identify the users of financial statements and state and differentiate between their information needs.

• Investors (shareholders)

Need information on profitability, dividends, growth, and risk to decide whether to buy, hold, or sell shares.

• Lenders (banks, loan providers)

Need information on liquidity, cash flows, and solvency to assess the entity’s ability to repay loans and interest.

• Suppliers (trade payables)

Need information on short-term liquidity and creditworthiness to decide whether to offer credit and on what terms.

• Employees

Need information on profitability and stability to assess job security, wages, and pension prospects.

• Customers

Need information on financial stability to ensure continuity of supply, especially for long-term contracts.

• Government and tax authorities

Need information on profits, revenue, and compliance to assess tax liabilities and enforce regulations.

• Management (internal user, but examinable)

Need detailed information on performance, costs, and financial position to plan, control, and make decisions.