Financial statements usually three forms namely: Income statement, Cash flow statement and Statement of financial position. The financial statements may be produced quarterly, semi – annually or annually. The company’s Act recommends that they must be produced annually. There are quite a number of parties who are interested in the financial statements. Their interests differ from one party to another. Specifically the following are some of the users of financial statements:
- Owners or shareholders both current and potential
- Actual lenders and lenders potential
- Current and potential employees
- Current and potential customers
- Current and potential short and long term suppliers of goods and debt
- The government and its agencies
- Consultants
- Financial analysts
- General public
- Consumer watch groups
- Trade unions etc.
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