Users of Financial Statements
Who Uses Financial Reports?
Different stakeholders rely on financial statements for different purposes. Although management prepares the statements, the primary focus of general-purpose financial reporting is external users who lack direct access to internal company information.
Note
Management also uses accounting information, but managerial accounting focuses on internal decision-making and is different from financial accounting.
Summary
Financial statements serve a wide variety of users, each relying on consistent and reliable information to make economic decisions.