Users of Financial Statements
TASK 1:
Financial statements are used by both internal and external users to make economic decisions. The information within the financial statement aims to provide information about the financial position, performance and any changes in financial position of an enterprise.
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.
AstraZeneca is a global, innovative biopharmaceutical business whose mission is to make the most meaningful difference to the health of patients through great medicines and is focused on the discovery, development and commercialization of prescription medicine.
In the case of AstraZeneca the user needs of the financial statements are to assist in making decisions. The information needs may vary for each user because they are used for different purposes. The users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public. They use financial statements in order to satisfy some of their different needs for information.
Shareholders and Investors - The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of AstraZeneca to pay dividends.
The Employees of AstraZeneca and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the company to provide remuneration, retirement benefits and employment opportunities. Employees also need these reports in making collective
Financial statements are used by both internal and external users to make economic decisions. The information within the financial statement aims to provide information about the financial position, performance and any changes in financial position of an enterprise.
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.
AstraZeneca is a global, innovative biopharmaceutical business whose mission is to make the most meaningful difference to the health of patients through great medicines and is focused on the discovery, development and commercialization of prescription medicine.
In the case of AstraZeneca the user needs of the financial statements are to assist in making decisions. The information needs may vary for each user because they are used for different purposes. The users of financial statements include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public. They use financial statements in order to satisfy some of their different needs for information.
Shareholders and Investors - The providers of risk capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to help them determine whether they should buy, hold or sell. Shareholders are also interested in information which enables them to assess the ability of AstraZeneca to pay dividends.
The Employees of AstraZeneca and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the company to provide remuneration, retirement benefits and employment opportunities. Employees also need these reports in making collective
Bibliography: * http://academicwritingtips.org/component/k2/item/2864-financial-statements.html * http://answers.yahoo.com/question/index?qid=20070722111952AApFJ0v * http://www.iasplus.com/interps/ifric014.htm * http://www.mccombs.utexas.edu/dept/accounting/facultypages/Koonce/Kadous%20Koonce%20Thayer%20may%205%202010.pdf * Tanenbaum J. R and Pinedo A. T, Morrison and Foerster LLP, The Law Legal and Regulatory Framework * Users of financial statements: http://finance.mapsofworld.com/financial report/statements/users.html * Walker J. L. Building the Legal and Regulatory Framework