Professional Documents
Culture Documents
Government agencies are interested in the efficient allocation of resources and therefore in the
activities of enterprises. They also require information in order to provide a basis for national
statistics.
The public. Business entities affect members of the public in a variety of ways. For example, they may
make a substantial contribution to a local economy by providing employment and using local suppliers.
Another important factor is the effect of an entity on the natural environment, for example as regards
pollution.
Accounting information is summarised in financial statements to satisfy the information needs of these
different groups. Not all will be equally satisfied.
Managers of a business need the most information, to help them make planning and control decisions.
They have greater access to business information, because they are able to review internally produced
statements. Managers can obtain extra information through the cost and management accounting
system.
In addition to management information, additional financial statements are prepared for the benefit of other
user groups, who may demand particular information.