The purpose of accountsLO: To know what different views different stakeholders would have of company accounts

Why does each stakeholder look at accounts? Manager Employees Owners Shareholders Bankers Suppliers Investors and financial analysts

Why does each stakeholder look at accounts? Manager – Control, analysis and evaluation and

decision making Employees – Prospects and wage negotiations Owners – To see if targets have been met Shareholders – Used to judge dividend

payments and the return on their investment Bankers – To see if the business can repay loans Suppliers – To decide if they will allow trade

credit Investors and financial analysts – Used to help

people decide if they should buy shares

Why do these other users look at accounts? Government Competitors The media Tax authorities Auditors Registrar of companies

Why do these other users look at accounts? Government – To monitor the progress of the

economy and evaluate its policies Competitors – To make comparisons and consider

takeover The media – To produce reports on business and

commerce Tax authorities – To know how much tax should be

being paid Auditors – The check the accounts of limited

companies for errors, called auditing Registrar of companies – Part of the rules of becoming

limited companies is to supply accounts

Goldenport holdings Page 159 Answer questions a-e