Users of Accounting Information

Name Nilashish Ghosh Dastidar (Roll no 8) Class PGDRM (2012-14) ASSIGNMENT BRIEFLY STATE THE USERS OF ACCOUNTING teaching. news report cultivation provides quantitative and qualitative information ab out(p) the various minutes and events of an method of accounting entity. The Accounting learning system of the accounting entity captures quantitative data and processes the pecuniary transactions related to the functioning of the same.Contemporary systems like ERP to a fault encompasses in its reaching the traditional quantitative Accounting data besides some qualitative or non-financial information like customer satisfaction quotients, employee satisfaction quotients and crossroad or service quality. Accounting Information is utilized for predicting, comparing and evaluating the earning originator and financial health of the said entity by a set of users. Today, every last(predicate) types of organizations, from manufacturing behemoths like Tata Steel, Reliance Industri es Limited etc. o Small & spiritualist Enterprises have bespeak for Accounting Information. Every sector of the economy, from Manufacturing to Service to retail and even Non-Profit organizations like NGOs, require such Accounting Information. The users of Accounting Information for some(prenominal) accounting entity ar broadly classified into sexual and immaterial categories. A) Internal Users This category of users are associated with the management of the concern for which the Accounting Information is sought to be collected and provided.They include the individual and collective ratiocination making bodies in the concern such as the Owners on nonpareil hand and the team, departmental, regional and top Managers of the entity. All Officers, Managers and the Directors/Partners come in this sort out of users. Occasionally, the internal Auditors would have to refer to past financial information tales of the entity and thereby become an internal user of Accounting Informatio n. The internal users broadly speaking confide on any Source Document/s (documentary evidence of transactions like Bills, cash in-Memo etc. ), P/L Account, Income & Expenditure Account, Balance Sheet, Cash Fund Flow Statements, Balance Sheets, Explanatory Notes & Schedules Of Workings Annexed To The monetary Statements & also Planning & Budgetary information. (1) Owners They need Accounting Information mainly to learn the prospect of the investments already made, the solvency of the operation, the efficiency and profitability of the business and the optimum crown/resource utilizations. (2) Managers This group of users generally and uniformly requires the Accounting Information for the planning, operate and controlling aspects of the concern.B) foreign Users The external users consist of two distinct sub-groups the Financial assemblage and the Public Group. Unlike the internal users, the need of the external users with suppose to Accounting Information is explicitly dif ferent from group to group. Though they generally rely on the similar sources of Accounting Information like Internal users that is, P/L Account, Balance Sheet, Notes & Annexure Attached To The Financial Statements, however, there are also some specialized types of Accounting Information demanded by the External users like Tax Returns, pot Policies etc. 1) Financial Group consists of the Investors, Lenders/Bankers and Suppliers/Trade Creditors of the concern. a) Investors need Accounting Information to decide about the risk promoter involved in making investment and in holding on to the equities they already have in the said entity. The profit and loss statement of the entity would also motivate them to either increase or decrease their stakes. b) Lenders/Bankers measure the confidence of the payment of interest and the repayment of the principal on the loans all-inclusive to the entity by the latter based on the Accounting Information. ) Suppliers/Trade Creditors for them, the Accounting Information provide with a reasonable idea on the credibleness of the entity and thereby allowing them to decide whether to continue to supply (credit sale) inputs to the said entity. (2) Public Group comprises of the g all overnment Agencies & Tax Authorities, Industrial Authorities & Research Workers, Labour Unions, Employees & Customers. a) Government & Tax Agencies As because the financial health of the nation is ultimately the certificate of indebtedness of the Government, hence any economic activity today is controlled and regulated by the same.It has to judge the prospect of a business and the mode of its functioning. Naturally, it would require any information to decide proper allocation of natural resources, impose duties etc. The Tax authorities would need to judge the appropriate tax levies on the entity. b) Labour Unions & Employees both rely on the Accounting Information to treasure the health of the entity since their present and future benefits an d growth are both basically dependent on the fortunes of the said concern. ) Customers they range from the process owners in the manufacturing or service chains linked to the entity in question to the wholesalers/retailers stocking on the return or services from the entity and ultimately the end-consumers. Depending upon the assurance of continuity of the entity, will these customers be ready to maintain their association with the concern or switch over some substitute/competitive entity. d) Industrial Authorities & Researchers The Industrial regulators need information to take decisions regarding subsidies, grants, relief etc.The Researchers need information to carry out analyses and research on the entitys operation. DIAGRAMMATIC REPRESENTATION OF THE USERS OF ACCOUNTING INFORMATION CATEGORY OF USERS OF ACCOUNTING INFORMATION INTERNAL USERS EXTERNAL USERS FINANCIAL convention PUBLIC GROUP OWNERS DIRECTORS MANAGERS OFFICERS AUDITORS INVESTORS LENDERS BANKERS SUPPLIE RS TRADE CREDITORS GOVT. AGENCIES LABOUR UNION EMPLOYEES CUSTOMERS INDUSTRIAL political science