Users of financial statements include a variety of stakeholders, each with distinct interests and purposes. Key users include:
1. **Investors and Shareholders**: To assess the profitability, financial health, and future prospects of the company, guiding their investment decisions.
2. **Creditors and Lenders**: To evaluate the company's creditworthiness and ability to repay loans.
3. **Management**: To make informed business decisions, plan strategies, and manage operations effectively.
4. **Employees**: To understand the company's stability and profitability, which can impact job security and remuneration.
5. **Suppliers and Trade Creditors**: To assess the company's financial stability before extending credit or entering into long-term contracts.
6. **Customers**: To ensure the company can continue providing goods or services.
7. **Regulatory Authorities**: To ensure compliance with laws and regulations.
8. **Analysts and Financial Advisors**: To provide insights and recommendations to their clients.
9. **Public**: To gauge the company's economic contribution and social responsibility.
10. **Potential Investors or Acquirers**: To evaluate investment or acquisition opportunities.
Each of these users relies on financial statements to make informed decisions related to their specific interests in the company.
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