0- As is evident from above, the first and foremost user of the Financial Statements would be the owner of the Business.
- Apart from owner, there are certain other parties who could be the users of the Financial Statements.
- Examples:
- An organisation has taken a loan from the Bank for the purpose of carrying on its business. Now, that Bank would also like to know whether the organisation is profitable or not. This can be only be known from the Financial Statements. Hence, Bank also becomes a “user” of the Financial Statements.
- The creditors, i.e. the people to whom the organisation owes money, would also like to know whether the business is profitable or not, and hence, Creditors are also “users” of the Financial Statements.
- Therefore, any person, who has a stake in the business of an organisation will become a “user” of the Financial Statements of that organisation.
