Identify the Main Users of Financial Reports

In: Business and Management

Submitted By emadcsh
Words 1075
Pages 5
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity .
Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements.
• Income Statement: reports the results of operations for a specific period of time.
• Retained Earnings Statement: reports the changes in retained earnings for a specific period of time
• Balance Sheet: reports the company's financial position at a specific date.
• Statement of Cash Flows: reports the case receipts and payments for a specific period of time.

The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an organization's financial position.
Financial statements are intended to be understandable by readers who have a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently
The users of financial statements use financial statements for a large variety of business purposes and their ability to understand and analyze financial statements helps them to succeed in the business world. The various users of financial statements can be classified to INTERNAL USERS and EXTERNAL USERS and detailed as follows : Internal Users
• Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis is then performed on these statements to provide management with a more detailed understanding of the…...

Similar Documents

Identify the Main Components of a E-Commerce Site

...Assignment 2: Identifying the Main Components e-Commerce Sites 1. Define the following terms: e-Commerce : The buying and selling of products and services by businesses and consumers through an electronic medium, without using any paper documents. E-commerce is widely considered the buying and selling of products over the Internet, but any transaction that is completed solely through electronic measures can be considered e-commerce. E-commerce is subdivided into three categories: business to business or B2B (Cisco), business to consumer or B2C (Amazon), and consumer-to-consumer or C2C (eBay) also called electronic commerce. Push Technology  A data distribution technology in which selected data are automatically delivered to the user's computer or mobile device in real time or at prescribed intervals. E-mail messages, calendar updates and text messages are examples of data that are pushed to the user. Contrast with "pull technology," in which the user initiates a request for the data each time. Browsing the Web is an example of the pull model. Pull Technology  Specifically requesting information from a particular source. Downloading Web pages via a Web browser is an example of pull technology. Getting mail is also pull technology if the user initiates a request to retrieve it. Contrast with push technology. HTTP  HTTP stands for The Hypertext Transfer Protocol (HTTP), it is the communications protocol used to connect to Web servers on the Internet or on a......

Words: 696 - Pages: 3

Financial Analysis of a Company Report

...Table of Contents 1.0 Introduction 4 2.0 Methodology 4 3.0 Non-Financial Information 4 3.1 SWOT Analysis 5 3.2 Porter’s 5 forces model 5 3.2.1 Fig 1 Porter's five forces Model 6 3.3 Corporate Social Responsibility 7 4.0 Financial Information 7 4.1 Directors’ Report 9 4.2 Auditors’ Report 9 4.2.1 Understanding Unqualified and Qualified Phrases 10 4.3 Financial Notes 10 5.0 Balance Sheet 11 5.1 Assets 11 5.1.1 Cash and Cash Equivalent 11 5.1.2 Temporary Investments 12 5.1.3 Accounts Receivable 12 5.1.4 Inventory 12 5.1.5 Prepaid Expenses 13 5.1.6 Total Current Assets 13 5.1.7 Property, Plant and Equipment (PPE) 13 5.2 Liabilities 14 5.3 Stockholders’ Equity 14 6.0 Working Capital 14 6.1 Current Ratios 15 6.2 Financial Leverage 15 7.0 Income Statement 15 7.1 Profit Margins 16 8.0 Cash Flow Statement 17 8.1 Financial Ratio Analysis 18 8.1.1 Return on Capital Employed ROCE 18 8.1.2 Calculating ROCE 18 8.1.3 Return on Assets ROA & Return on Investments ROI 19 8.1.4 Calculating Return on Fixed Assets ROFA 19 9.0 Summary 20 References 24 1.0 Introduction. Abacus Accounts are seeking to outsource most of their Facilities Management operations to an external FM provider; these will include: maintenance, cleaning, catering, security and vehicle management. They are a large business which is seeking to identify a strategic partnership and will therefore, only be willing to deal with significant......

Words: 6167 - Pages: 25

Financial Report

...Financial Report Essay: For admirers of fine crystal, there is something magical about the name Swarovski. For admires of speed and glamour there is something magical about the name Ferrari or Lamborghini. And, without a shadow of doubt, for the lovers of high technology, innovation and music there is something magical about the name Apple. While ages ago our ancestors were bothered by the question of who came first a chicken or an egg, today the question is different. As the fame and success of Apple company and its products is increasing, the question one may rise is for example: what came first … the iPod or iTunes? In my paper I would like to present the financial report of the iTunes. To begin with I would like to give some background history of the product because even though the product itself is familiar to everyone, some may still wonder of its origin and principle function. As a matter of fact iTunes came first, even though it seems that we started hearing about the iPods much earlier. Before the iPod was released, Mac users had had the ‘iLife’ on their computers. The Ilife also included iTunes version 1.0 – however it looked rather different from the “modern” iPods or itunes. The main difference was that the iLife has a three-note icon and not the double green one which people are familiar with today. So, as we can see, the iTunes was around, for for the Mac only, of course, from January 2001. In April of 2003, a new version of iTunes (4.0) was released. That......

Words: 1774 - Pages: 8

Four Main Financial Statements

...Lisa Clark Accounting Capstone Project March 15, 2013 Week 2 Application The four main financial statements are the balance sheet, the income statement, the cash flow statements, and the statements of shareholder’s equity. Each statement can be used to give an insight to a company’s financial activities, and can provide valuable information on said company. The balance sheet provides detailed information on a company’s assets, liabilities, and their shareholder’s equity. A company’s balance sheet has to equal out, so the assets have to equal the sum of the liabilities and the shareholder’s equity. Assets are the things that a company owns that have value, and assets are usually listed on how quickly they can be converted to cash. Liabilities are usually listed based on their due dates which can be current or long term. The shareholder’s equity is the amount of money that owners have invested ( The income statement show how much revenue that a company has earned over a period of time, and it shows the costs and expenses associated with earning that revenue. The statements also show whether or not the company made money or lost money. The income statement also shows the earning per share which is the amount of money the shareholder’s would make if the money was distributed. Most of this money is reinvested in the company. The income statement will list the total amount of sales at the beginning and then certain costs are deducted to end with......

Words: 719 - Pages: 3

Financial Report

...EXAMINATION : FINAL STAGE MODULE F SUBJECT : FINANCIAL ACCOUNTING III CODE : P18 EXAMINATION DATE : THURSDAY, 4TH MAY, 2006 TIME ALLOWED : THREE HOURS (9:00AM – 12:00NOON) ---------------------------------------------------------------------------------------------------- GENERAL INSTRUCTIONS 1. There are FIVE questions in this paper. 2. Attempt all the FIVE questions. 3. Marks are shown at the end of each question. 4. Show all your workings in your answer book(s). 5. Calculate your answers to the nearest one decimal point where applicable. 6. This question paper comprises 7 printed pages. QUESTION 1 The International Accounting Standard No24 on related party Disclosures has the main objective of ensuring that an entity’s financial statements contain the disclosers necessary to draw attention to the possibility that its financial position and profit or loss may have been affected by the existence of related parties and by transactions and outstanding balances with such parties. REQUIRED: a) Mention five parties identified in the standard as being related to an entity. b) Give examples of transaction that needs to be disclosed if they are of a related party nature. c) Tanzania Financial Accounting Standard (TFAS) No. 12 on Directors’ Report is one of the TFAS still applicable even after the wholesale adoption of IFRS in 2004 REQUIRED: Compare And Contrast IAS 24 and TFAS 12 showing the similarities......

Words: 1838 - Pages: 8

Users of Financial Information and Their Informational Needs

...Name; Anita Nana Yaa Addai Index; Bsc/Admin/12/13/047 Course; Financial Accounting Users of financial information and their informational needs. Users of accounting information are either internal or external to the organization. These users need information to help them make informed or reliable decisions or judgements with regards to the organization. Different groups have different demands for the financial information contained in a set of accounts. Information needs of internal users These include; * Management; This category is made up of the senior employees who run the organization on a day- to- day basis. They are interested in information such as, Finance of the organization (working capital) The growth prospects (value of shares and dividends) * Employees ; This is the group of workers in the organization made up of existing potential and past employees. The members of this group are concerned with job security and future prospects. Therefore, they need information to assess the company’s profitability, liquidity and growth prospects. Employees need information about The financial state of the organization ( for their salaries) The growth and stability of the organization ( new investments ) to ensure continuity of employment. Profitability. Others are informational needs of external users including * Customers; Those who buy from the organization either for cash or on credit are interested in; The profitability The growth and stability ( new......

Words: 381 - Pages: 2

Financial Report

...Financial Report on Walt Disney Company Financial Report on Walt Disney Company Introduction Walt Disney Company Walt Disney has been selected for analysizng the financial position for this assignements. The Walt Disney Company is regarded as the second largest and most utilzied entertainment and media companies after (TMC) Time Warner Company. The company was established on 16th October, 1923 by Roy Disney and Walt Disney. Throughout the years, it has emerged as one of the largest Hollywood studios and the American Broadcasting Company. The corporate headquarters of Walt Disney is in California. The company primary involves in the service manufacturing industry, books, computer games, animation and entertainment studios and network etc. The Walt Disney and its subsidiaries have been loyal and committed towards the company and its success. Walt Disney has a rich legacy of creative content and story telling that is exceptional. (Walt Disney,2012) The word Disney is a renowned word in the media business industry. It is known for the provision of entertainment to adults and young alike. It comprises of an international theme park and a huge animation studio for production. The Walt Disney dominates the entertainment industry. The Walt Disney Company is a diverse international company in the field of entertainment. It is a media enterprise and comprises of five primary business segments (SBU’s). These include entertainment studies, interactive...

Words: 4081 - Pages: 17

Financial Report

... 1.1 Origin of the Report Today‟s business world is continuously changing. The operation of business is getting complex in every moment. That is why, today, the management of any business activity requires so much expertise from the part of its employees. The business graduates are the core part of management. So a business graduate has to have so much theoretical as well as practical knowledge to manage the ever-changing business activity. Besides the theoretical knowledge, practical experience is provided to business graduates & internship is the well practiced mechanism in this regard. The internship program is an integral part of the BBA program. As a student‟s of BBA program of different universities, everyone has to submit a report after completion of internship program. We were assigned to Islami Bank Bangladesh Limited to complete the program. As a student of BBA, internship is an academic requirement. For doing internship we were sent to the Islamic Bank Bangladesh, New Market Branch, Dhaka under the supervision of Mohammad Ali Biswash, SPO, Islami Bank Bangladesh Limited, New market Branch, Dhaka. The completion of our general class for internship program in Islamic Bank Training and Research Academy (IBTRA), the IBTRA authority gave us the selecting topics‟ for preparing the internship report. Our supervisor Mohammad Ali Biswash, SPO, Islami Bank Bangladesh Limited, New market Branch, Dhaka, also support us to prepare a report on Islamic......

Words: 17715 - Pages: 71

Financial Report

...Brambles Limited ABN 89 118 896 021 Level 40 Gateway 1 Macquarie Place Sydney NSW 2000 Australia GPO Box 4173 Sydney NSW 2001 Tel +61 2 9256 5222 Fax +61 2 9256 5299 20 August 2015 The Manager-Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Via electronic lodgement Dear Sir / Madam BRAMBLES LIMITED FY15 FINANCIAL RESULTS Brambles Limited announces to the market its financial results for the year ended 30 June 2015. The following documents are attached: 1. 2. Appendix 4E – Preliminary Final Report; and Brambles’ 2015 Annual Report including its financial statements, for the ended 30 June 2015. Yours faithfully Brambles Limited Robert Gerrard Company Secretary {RNG 00086515} This page intentionally left blank Results for Announcement to the Market Brambles Limited ABN 89 118 896 021 Appendix 4E Preliminary final report for the year ended 30 June 2015 Year ended 30 June 2015 US$M 2014 US$M % change (actual FX rates) % change (constant FX rates) Statutory Results Continuing operations after Significant Items1: Sales revenue 5,464.6  5,404.5  1% 8% Operating profit 938.5  929.5  1% 8% Profit before tax 826.6  816.5  1% 9% Profit after......

Words: 27269 - Pages: 110

Financial Report Assignment

...NATIONAL ECONOMICS UNIVERSITY BTEC HND IN BUSINESS Assignment Front Sheet | Qualification | Unit Code / Unit number and title | Pearson BTEC Level 5 HND Diploma in Business (QCF) | F/601/0864 QCF level: 4Unit 10 Financial Accounting and Reporting | Student name NEU Student Number / BTEC Registration Number | | | | Assessor name(s) | Noel Farquharson | Le Quang Dung | Date issued | Submission deadline (for both hard copy and Turnitin) | May 7th 2015 | May 22nd 2015 | | | Assignment title | Interpreting financial statement | Student to indicate clearly on the Evidence (Page no) their answers against the following assessment criteria that can be found. | Learning Outcome | Learning outcome | Assessment Criteria | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO4 | Be able to interpret financial statements | 4.1 | Calculate accounting ratios to assess the performance and position of a business | 1&2 | | | | 4.2 | Prepare a report incorporating and interpreting accounting ratios, including suitable comparisons. | 3 | | Student declaration | I certify that the work submitted for this assignment is my own. I have clearly referenced any sources used in the work. I understand that false declaration is a form of malpractice.Student signature: ...

Words: 1596 - Pages: 7

Financial Report

... contents Corporate Information 2 Corporate Structure 3 Financial Highlights 4 Directors’ Profile 5 Significant Events 8 Corporate Social Responsibility 12 Chairman’s Statement 16 Corporate Governance Statement 19 Audit Committee Report 33 Statement on Risk Management and Internal Control 37 Financial Statements 40 List of Properties 106 Analysis of Shareholdings 107 Notice of Eighth Annual General Meeting 110 Statement Accompanying the Notice of the Eighth Annual General Meeting 114 Proxy Form 2 POWER ROOT BERHAD (Company No.: 733268-U) Corporate Information SHARE REGISTRAR BOARD OF DIRECTORS Y.M. Tengku Shamsulbhari bin Tengku Azman Shah, Independent Non-Executive Chairman SMK. Dato’ Low Chee Yen Managing Director Dato’ How Say Swee Executive Director Dato’ Wong Fuei Boon Executive Director REGISTERED OFFICE See Thuan Po Executive Director 31-04 Level 31, Menara Landmark No. 12 Jalan Ngee Heng 80000 Johor Bahru, Johor Tel : 07 – 278 1338 Fax : 07 – 223 9330 Ong Kheng Swee Independent Non-Executive Director Datuk Faizoull bin Ahmad Non-Independent Non-Executive Director (Appointed on 30 September 2013; Resigned on 27 March 2014) Dato’ Tea Choo Keng (Alternate Director to Y.M. Tengku Shamsulbhari bin Tengku Azman Shah, Datuk Sarchu bin Sawal Non-Independent Non-Executive Director (Resigned on 30......

Words: 3238 - Pages: 13

Users of Financial Info

... Users of Financial Information Managers Managers require Financial Statements to manage the affairs of the company by assessing its financial performance and position and taking important business decisions. Shareholders Shareholders use Financial Statements to assess the risk and return of their investment in the company and take investment decisions based on their analysis. Investors Prospective Investors need Financial Statements to assess the viability of investing in a company. Investors may predict future dividends based on the profits disclosed in the Financial Statements. Furthermore, risks associated with the investment may be gauged from the Financial Statements. For instance, fluctuating profits indicate higher risk. Therefore, Financial Statements provide a basis for the investment decisions of potential investors. Financial Institutions Financial Institutions (e.g. banks) use Financial Statements to decide whether to grant a loan or credit to a business. Financial institutions assess the financial health of a business to determine the probability of a bad loan. Any decision to lend must be supported by a sufficient asset base and liquidity. Suppliers need Financial Statements to assess the credit worthiness of a business and ascertain whether to supply goods on credit. Suppliers Suppliers need to know if they will be repaid. Terms of credit are set according to the assessment of their customers' financial health.......

Words: 531 - Pages: 3

Financial Report

...Berto Tbk .- Martha Tilaar Group   Page 3 Criterion 23: The description of high standard of transparency and disclosure report Page 43 Criterion 24: Iindependently verification of the CoP Page 47 The Communication on Progress of PT. Martina Berto Tbk .- Martha Tilaar Group   Page 4 CREATING BUSINESS VALUE FOR HUMAN & NATURE The statement of CEO of PT. Martina Berto, Tbk. We are pleased to continuously confirm that our company, PT. Martina Berto, Tbk supports the ten principles of the Global Compact on human rights, labour, environment, and anti-corruption. With this communication, we express our intent to implement those principles. We are committed to making the Global Compact and its principles part of the strategy, culture and day to day operations of our company, and to engaging in collaborative projects which advance the broader development goals of the United Nations, particularly the Millennium Development Goals. PT. Martina Berto, Tbk will make a clear statement of this commitment to our stakeholders and the general public. We recognize that a key requirement for participation in the Global Compact is the annual submission of a Communication on Progress (COP) that describes our company’s efforts to implement the ten principles. We support public accountability and transparency, and therefore commit to report on progress within one year of joining the Global Compact, and annually thereafter according to the Global Compact COP......

Words: 15163 - Pages: 61

Users of Financial Statements and Their Needs

...The main user groups include: • Investors / shareholders • Employees • Lenders • Suppliers • Customers • Government • Public What then are the needs of these groups and how would they use the published statements? Investor Group This group would comprise both existing and potential shareholders. They would consider whether to invest or disinvest in the business. Equity investors consider two elements to their investment, income and gain. Income in the form of dividends and gain in the share price. If the investor takes a short-term view then current dividends are of interest. Whereas a longer-term view would concern future earnings. A guide to the future can to some extent be seen in company reports with the chairman’s statement, although based on current performance, company forward strategy is often included. The investor group would also be interested in profitability and its trend over a period of time. Employees It is encouraging to note that some companies produce a separate employees report. Employees and their representatives require information on business performance for two principal reasons: • wage and salary negotiation • assessment of current and forward opportunity in terms of employment They would be interested in both the current financial stability and the longer-term financial viability of the business. They need information in a clear, simple and understandable form. I have seen some employee reports which include a value added......

Words: 613 - Pages: 3

Main Report

...Internship Report: BANK ALFALAH LIMITED Submitted By: MAIDAH MASOOD Roll # 107 Section: “C” Morning B-Com (Hons) Session: 2005-2009 Hailey College of Commerce, University of the Punjab, Lahore. The evolution of Bank Alfalah signifies a movement from concept to reality; a reality to bring about a change in the banking industries of Pakistan; offering an alternative way of banking; providing people an opportunity to practice beliefs in their financial matters. Following privatization, Bank Alfalah emerged as new identity of Habib Credit and Exchange Bank with a revived purpose and commitment. Charged with the strength of Abu Dhabi consortium and under the leadership of His Highness Sheikh Nahayan Mabarak Al-Nayayan, the bank has already made significant contributions in building and strengthening both corporate and retail banking sector in Pakistan. At present the bank has expanded its operations across Pakistan in 74 cities with 189 operational branches. However, it has total 195 branches that include 23 Islamic Banking branches, five overseas branches three in Bangladesh and two in Afghanistan and one offshore banking unit in Bahrain. It is pertinent to note that all of its branches commenced their operations in “Real Time Online Mode”. Today Bank Alfalah is the fifth largest Banking operation in Pakistan. Since its inception, it has registered the fastest growth rate......

Words: 32436 - Pages: 130

Tlchargement | Maya Eshet | Nicki Minaj