This document discusses the users of accounting information, both internal and external to an organization. Internal users include management, employees, and owners, who use accounting data to analyze performance, assess profitability and viability, and determine compensation and job security. External users consist of creditors, tax authorities, investors, customers, and regulatory bodies. Creditors examine creditworthiness and risk. Tax authorities review tax filings. Investors analyze investment feasibility and returns. Customers ensure stable supply. Regulators ensure compliance with disclosure rules. Overall, accounting information helps both internal and external users make better financial decisions.

1. Users of Accounting
Information
 Accountancy is the process of communicating financial information about a
business entity to users such as shareholders and managers (Elliot, Barry & Elliot,
Jamie: Financial accounting and reporting)
 Accounting has been defined as:-the art of recording, classifying, and
summarizing in a significant manner and in terms of money transactions and
events which are, in part at least, of financial character, and interpreting the
results there of.(AICPA)
 Users of Accounting Information - Internal & External:-Accounting information
helps users to make better financial decisions. Users of financial information may
be both internal and external to the organization

2. Users of Accounting Information -
Internal
Management: Employees Owners

3. Users of Accounting
Information
External
Creditors
Tax
Authourities
InvestorsCustomers
Regulatory
Authorities

4. Internal users (Primary Users)
I. Management: for analyzing the organization's
performance and position and taking appropriate
measures to improve the company results. -
II. Employees: for assessing company's profitability and its consequence
on their future remuneration and job security
III. Owners: for analyzing the viability and profitability of
their investment and determining any future course of
action

5. External users (Secondary
Users)
I. Creditors: for determining the credit worthiness of the organization.
Terms of credit are set by creditors according to the assessment of
their customers' financial health. Creditors include suppliers as well
as lenders of finance such as banks
II. Tax Authourities: for determining the credibility of the tax returns
filed on behalf of the company
III. Investors: for analyzing the feasibility of investing in the company.
Investors want to make sure they can earn a reasonable return on
their investment before they commit any financial resources to the
company

6. External users (Secondary Users)
I. Customers: for assessing the financial position of its suppliers which is
necessary for them to maintain a stable source of supply in the long term.
II. Regulatory Authorities: for ensuring that the company's disclosure of
accounting information is in accordance with the rules and regulations set in
order to protect the interests of the stakeholders who rely on such information
in forming their decision

7. BRANCHES OF ACCOUNTING
ACCOUNTING

8. EMPLOYEES
 EMPLOYEES:- employees are entitled to bonus at the end of the year which is
linked to the profit earned by an enter price there for the employees are
interested in finance statement these the finance statement also reflect whether
the enter price
employees will there fore look for information
 Revenue and profit growth
 Levels of investment in the business
 Status and valuation of company pension levels of
company pension contributions

9. Owners
Owners contribute capital in the
business and are exposed to maximum
risk thus they are interested in knowing
the profit or loss by the business besides
statements give the information the
finance profit or loss end finance
pension of the business

10. The key accounting information the
fore
1.Loss flow
2.Security of asset against which
the lending my be secured
3.Investment requirements in
the business

11. Investors
Investors are concerned about risk and return in relation their investment they
require information to decide whether the continue to invest in the business they
also and measure the performance of the business management over all
creditors will there fore be looking for information on
a) Cash flow
b) Management of working capital
c) Payment by policy

12. Power point presentation
By:-
(PPT)
DHARMENDRAKUMAR