Why Annual Reports Are Important to UsersAn annual report can give us a lot of important information about a company. When we're a regular stockholder, the company sends us its annual report. If we're not already a stockholder, we may contact the company's shareholder service department for a hard copy.
We can often view a company's annual report at its Web site. Any major search engine can help us find it. Downloading or printing the annual report should be easy.
We need to carefully analyze an annual report to find out the following:
· We want to know how well the company is doing. Are earnings higher, lower, or the same as the year before? How are sales doing? These numbers should be presented clearly in the financial section of the annual report.
· We want to find out whether the company is making more money than it is spending. How does the balance sheet look? Are assets higher or lower than the year before? Is debt growing, shrinking, or about the same as the year before?
· We want to get an idea of management's strategic plan for the coming year. How will management build on the company's success? This plan is usually covered in the beginning of the annual report frequently in the letter from the chairman of the board.
Our task boils down to figuring out where the company has been, where it is now, and where it's going. As an investor, we don't need to read the annual report like a novel from cover to cover. Instead, approach it like a newspaper and jump around to the relevant sections to get the answers we need to decide whether we should buy or hold on to the stock.
The process of preparing an annual report provides us with an essential and comprehensive document to present to investors and lenders who express an interest in our business, or potential stakeholders who we approach for funding. We could always assemble this information in the middle of the year if and when we need it, but it is far more convenient to have it on hand already, and our information is more accurate and useful if we prepare it in a timely fashion.
shareholders creditors employees customers financial analysts
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
the objective is to evaluate and report a company's fianancial performance fairly and correctly and provide useful imformation for internal and external users for decision making.
external aiditor,shareholder,goverment etc
Explain the users of annual report
shareholders creditors employees customers financial analysts
Auditors should express independent opinion on every information presented by the company to the the users (may be public, suppliers, SARS, shareholders ect)
Accounting exists to report financial numbers of a business to external users like creditors, shareholders, and suppliers.
its snapshot of business.. and a kind of information for external or internal users, for to let them decide for to invest in company or vice vrsa
Internal users of information are those business units within the organization. While, external users of information are those business linkages (outside) of the organization.
If you mean differences in internal and external users of financial statements, then the answer is as follows: Internal users are persons employed by the organization such as management (e.g. CFO, CEO); internal users also encompasses owners and board members of the entity. External users are those not employed by the organization such as potential investors or creditors; external users also do not include persons presently with ownership in the business nor board members of the entity.
Internal Users of accounting information would not usually be external users. Management, staff, the board, would all be classed as internal users of financial information.
the objective is to evaluate and report a company's fianancial performance fairly and correctly and provide useful imformation for internal and external users for decision making.
external aiditor,shareholder,goverment etc
Internal users would be managers so that they can make decisions about how to manage and also see how effectively they have managed. External users would be potential investors, the Government, lenders, the public, unions...
External Users of accounting information are NOT directly involved in running the organization. Internal Users of accounting information are those individuals directly involved in managing and operating the organization.