The framework for the preparation and presentation of financial statements, identifies the following users of financial statements:
1. Investors: The providers of risk capital and their advisors are concerned with the risk inherent in, and return provided by, their investment. They need information to help them determine whether they should buy, hold or sell their shares.
Shareholders are also interested in information which enables them to assess the ability of the enterprise to pay dividends.
2. Employees: Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities.
3. Lenders: Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them will be paid when due.
4. Suppliers and other trade creditors: These are interested in information that enables them to determine whether amounts owing to them will be paid when due.
5. Customers: They have an interest in information about the continuance of an enterprise, especially when they have a long term involvement with, or are dependent on the enterprise.
6. Governments and their agencies: These are interested in the allocation of resources and therefore, the activities of enterprises. They also require information in order to regulate the activities of the enterprises, taxation policies and as the basis for national income and similar statistics.
7. Public: Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the enterprise and the range of its activities.