Users of Financial Information

User Information Required The financial statements are inevitable for the management to take rational decisions to maintain the sustainability in the business environment among the other competitors. Potential Conflict With Other Users Possible conflicts with Shareholders, Investors, Lenders and Government and Regulatory agencies. Suggestion On How To Minimize Conflict

Management

Shareholders, Security Analysts and Investors

Lenders

Suppliers

The information extracted from the financial statements are processed by the above mentioned people to identify not only the financial status but also to determine the qualities of getting appropriate rate of return out of the prospective investment. The lenders do study about the business enterprise through the available information of its financial statements normally before lending. The aim of the study is to analyze the status of the firm for the worthiness of lending with reference to the payment of interest periodicals and the repayment of the principal. The suppliers are in need of Possible conflict with information about the business Management fleeces before sale of goods on credit. The Suppliers are very cautious in supplying the goods to the business houses based on the various capacities of themselves. The most important capacity required as

The government should give flexible tax regulations, shareholders should agree with management on an efficient auditor, and investors can request that an independent auditor scrutinize the books. Possible conflicts with There should be management, mutual agreement Government, between Competitors. shareholders and management, and investors should be allowed to have an independent auditor scrutinize the books. Possible conflict with Transparency should Management and be encouraged by all Shareholders parties

Payment on all transactions should be made promptly and also transparency should be encouraged by both parties.

Customers

Government and Regulatory Authorities Competitor

well as expected from the buyer firms is that prompt repayment of dues of the credit purchase from the suppliers. This quality of prompt payment could be known through culling out the information from the balance sheet. It mainly plays pivotal role in answering the status inquiries about the buyer The legal relationship of the transferability of ownership of the products is obviously understood through financial information available in the statements. The agreement of warranty and guarantee is tested through the financial status of the enterprise. The taxes to be paid to the central and state govts on the revenues only through presentation of information.

Possible conflict with management

Accurate entries about defective products should be made and customers adequately satisfied.

Possible conflict with Management, and Stakeholders

Flexible tax options