1 / 7

User of Accounting Information

User of Accounting Information. Direct interest Users: - Owners , creditors , suppliers , management ,etc….. Indirect interest Users: -Financial analysts , labors union , trade association ,regularity authorities ,etc…. See page 5. Users’ Information Needs.

jeremy-castro
Download Presentation

User of Accounting Information

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. User of Accounting Information • Direct interest Users: - Owners , creditors , suppliers , management ,etc….. • Indirect interest Users: -Financial analysts , labors union , trade association ,regularity authorities ,etc…. See page 5

  2. Users’ Information Needs • Broadly,information on the following aspects is needed by different categories of users : • To be able to decide when to buy , hold , or sell an equity investment. • To assess the ownership . • To assess the ability of the firm to pay and provide other benefits to its employees. See page 5 6

  3. Users’ Information Needs • To assess the security for the amounts lent to the enterprise. • To determine taxation policies . • To determine distribution profits and dividends. • To regulate the activates of the enterprise.

  4. Statement for presenting information needs of users • Financial Statements • Balance Sheet • Income Statement • Statement of Owner’s Equity • Statement of Cash Flows • Note Disclosure See page 6

  5. What is Accounting Theory? 1 - (Belcaoui) : “..a set of interrelated constructs (concepts),definitions, and propositions that present a systematic view of phenomena by specifying relations among variables with the purpose of explaining and predicting the phenomena.” 2- (Hendrikson & Van Breda) : “ ….. See page 6 7

  6. What is Accounting Theory? Accounting Theory aims to: • Provide a better understanding of existing practices to investors ,managers , and other users. • Provide a conceptual framework for evaluating existing accounting practices ,and • Guide the development of new practices and procedures.

  7. What is Accounting Theory? • See page 6 • accounting theory is that branch of accounting which consist of systematic statement of principles and methodology , as distinct from practice.

More Related