hnd会计期末考.docx

hnd会计期末考.docx

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hnd会计期末考

Outcome3

①Management

Thesearepeopleemployedbythecompanytoadministerandcontroltheuseoftheresources.Thesepeopleasmanagingdirectorsorasavarietyofstafftitlessuchasfinancemanager,administrationmanagerandproductionmanagertonamebutafew.

ThepurposeofManagement:

Managementwillusetheaccountinginformationtocompareperformancewithpreviousyearsandcompetitors,identifyareasofimprovement,planfutureresourceallocation,decidepurchasingandpricingpolicies,etc.

Assessmentofperformanceandassistanceinplanningandcontrolfunction.

ThesourceofManagement:

Useallsourcesoffinancialinformation:

finalaccountsBudgets,

Ratioanalysis

②Employees

Allemployeesofacompanywillbeinterestedinhowthebusinessisperforming.Thiswillaffecttheirjobsecurity,wagesandpromotionprospects.

ThepurposeofEmployees:

Employeesaregenerallyinterestedinjobsecurityandfuturesalarynegotiations.Theywillthereforebeparticularlyinterestedinprofitabilityandthecompany’sfutureprospects.

ThesourceofEmployees:

Profit&Loss–profitfigures,Balancesheet–netcurrentassets,

CashFlowstatement–majorinflows/outflowsofcash,Profitabilityratios

③PresentShareholders

Thesearetheownersoflimitedcompanieswhohaveinvestedinabusinessbybuyingordinaryorpreferenceshares.

ThepurposeofPresentShareholders:

Thisgroupofusersisprimarilyinterestedinthevalueoftheirsharesandthereturnontheirinvestment.Theyrequirethisinformationtoassesstheprofitabilityofthecompany.Presentshareholderswillusethisinformationtohelpdecidewhethertoremainashareholderinthisbusinessortoselltheirsharesandinvestelsewhere.

ThesourceofPresentShareholders:

Profit&Loss–profitanddividendfiguresProfitabilityratios,Directorsreport–futureplans

④PotentialShareholders

Theseareindividualsororganizationsthatareconsideringinvestinginthecompanythroughbuyingordinaryorpreferenceshares.

ThepurposeofPotentialShareholders:

Potentialshareholderswillbeinterestedinthevalueofandreturnontheirinvestment.Morespecifically,potentialshareholderswillcomparetheprofitabilityandfutureprospectsofthecompanywithotherstoascertainthebestinvestmentoption.Theyusefinancialinformationtoassesstheriskattachedtoinvestment.

ThesourceofPotentialShareholders:

Profit&Loss–profitsretained/distributed,Balancesheet–capitalstructure,Ratioanalysis

⑤Short-termCreditors

Theseareindividualsororganizationsthatlendthecompanymoneyorgoods.Thismaybeintheformofsupplierswhosellgoodsoncreditorafinancecompanygivingshort-termfinance.

ThepurposeofShort-termCreditors:

Theywillbeanalyzingtheliquidityandlong-termfutureofthebusinesstodecidetheleveloffinancetobegiven.Short-terminvestorsusethefinancialinformationtoevaluatethelevelofriskandtheprospectsofthemoneybeingrepaid.

ThesourceofShort-termCreditors:

Balancesheet–netcurrentassetfigures,CashFlowstatement–majorinflows/outflowsofcash,Liquidityratio

⑥Long-termCreditors

Theseareindividualsororganizationsthatlendthecompanymoneyonalong-termbasis.Thismaybeafinancecompanylendingcapitaltopurchasenewfixesassetsorabankgivingalong-termloanordebenture.

ThepurposeofLong-termCreditors:

Long-termcreditorswillusethefinancialinformationtoanalysetheliquidityandlong-termfutureofthecompanytoevaluatethelevelofrisk.Theyalsousethisinformationinordertodetermineifinterestpaymentarelikelytobemadepromptlyandifthecompanycanmakethecapitalrepayments.

ThesourceofLong-termCreditors:

Profit&Loss–interestcover,Balancesheet–existinglevelofdebt;Assetsvalue,CashFlowstatement–majorinflows/outflowsofcash,Ratioanalysis–liquidityratios;Interestcoverratio

⑦Authorities

Thetaxauthoritieswillbeinterestedintheaccountsofacompany.

ThepurposeofAuthoritiesTheywillusetheaccountinginformationtoensurethatthecompanyadherestoalllegalrequirements.InlandRevenueusestheinformationtoassessthecorporationtaxpayable;CustomsandexciseusesthemtoassessVATliability;CBIandNOSusethemtoshoweconomictrends,foreigntradefigures,employmentstatistics,etc.

ThesourceofAuthorities:

Profit&Loss–profit/taxfigures,Directorsreport–futureplans,employmentdetails

⑧Competitors

Competitorswillbeinterestedinthefinancialinformationinordertocompareperformance.

ThepurposeofCompetitors:

Competitorswillbeinterestedinallareasofthebusinesssuchasstability,pricingpolicyandperformance.Thisinformationmayallowthemtogeta‘lead’inthemarket.Fundamentallycompetitorswillusetheinformationcontainedwithintheaccountsinordertocompareperformance.