The management is interested whether the organisational objectives are achieved or not, the shareholders want to know whether their money is used properly and whether they are getting proper returns or not, Bankers and lenders will be interested when granting loans or advances whether or not the company will be able to …

Why are investors and potential investors are interested in the financial statement?

Financial statements contain the profit & loss account, balance sheet and cash flow statements. Investors like: shareholders, creditors, bank etc are interested in financial statements of a company in order to know the profitability of company in order to ensure how much return they will get.

What do investors use financial statements for?

Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.

Why do shareholders need to see financial statements?

When evaluating investments, shareholders are able to glean meaningful data found on financial statements. There are a number of tools shareholders can use to make equity evaluations, and it is important for them to analyze their stocks using a variety of measurements.

Who are the stakeholders in a financial statement?

Shareholders receive a set of financial statements as a right, and are the only stakeholders to do so. The shareholders interest will be in what the company is doing with the money they have invested, and whether it is making a profit or loss.

Why are investors interested in an accounting report?

Accounting reports is the best systematic way of understanding company or economic perfomance. That’s because it represents a historic activity report for a company. So instead reading private or news report of company. Reading an accounting reports is just more comprehensive and thorough

What kind of information do shareholders need in a quarterly report?

They need to know how the company did to decide whether to continue to hold, sell or buy more shares. Every quarterly earnings report is accompanied by a company press release in which the management summarizes the result and puts the best spin on the situation.