Accounting information

 Persons interested in Accounting Disclosures:- 

 Accounting is of primary importance to the proprietors and the managers. However, others person's such as creditors, prospective investors, employees, etc. are also interested in the Accounting information.

1) Proprietors:- A business is done with the objective of making profit. It's profitability and financial soundness are, therefore, matters of prime importance to the proprietors who have invested their money 💰 in the business.

2) Managers:- In a sole proprietary business, usually the proprietor is the manager. In case of a partnership business either some or all the partners participate in the management of the business. They therefore, act both as managers as well as owners. In case of joint stock companies, the relationship between ownership and management becomes all the more remote . In most cases the shareholders act merely as rentiers of capital and the management of the company passes in to the hands of professional managers. The Accounting disclosures great help them in knowing about what has happened and what should be done to improve the profitability and financial position of the enterprise in the period to come.

3) Creditors:- Creditors are the persons who have extended Credit to the company. They are also interested in the financial statements because they will help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal.

4) Prospective Investor's:- A person who is contemplating an investment is a business will like to know about its profitability and financial position. A study of the financial statements Will help him in this respect.

5) Government:- The government is interested in the financial statements of a business enterprise on Account of taxation, labour and corporate laws. If necessary, the Government may ask officials to examine the Accounting records of a business.

6) Employees:- The employees are interested in the financial statements on Account of various profit sharing and bonus schemes. Their interest may further increase in case they purchase shares of the companies in which they are employed.

7) Citizen:- An ordinary citizen may be interested in the Accounting records of the institutions with which he comes in contract in his daily life, e.g., 🏦 bank , template, public utilities such as gas, transport and electricity companies. In a broader sense, he also interested in the accounts of a Government company, a public utility concern etc., As a voter and a tax payer.