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Discuss the reasons why financial statements are prepared with the needs of shareholders in mind and also outline the main shareholder needs

Word count: 2000

Assignment brief

Financial statements are prepared for a variety of users but it is often stated that shareholders are the most important users because the preparation of financial statements is geared to meeting their needs.

You are required to:
i) Discuss the reasons why financial statements are prepared with the needs of shareholders in mind and also outline the main shareholder needs
(40 marks)

ii) Who are the other main users of financial statements and what are their needs? Are these users less important than the shareholders?

(45 Marks)


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