FINANCIAL INFORMATION

Financial Information - The Needs of Internal Stakeholders

Management, Control and Accountability for Financial Resources

June 2012

Table of Contents (To be Included)

Introduction1

Literature Review2

Discussion4

Users of Financial Information4

Production Manager's Needs4

Marketing Manager's Needs6

Director of Finance's Need8

Chief Executive's Needs9

Shareholders' Needs11

Conclusion12

Managerial Accounting Reports13

Summary:  Financial versus Managerial Accounting14

Financial and Managerial Accounting Differences14

References15

Introduction [To be included in introduction]

The purpose of this assignment is to discuss how the financial information of the business entities and data can benefit the internal stakeholders to achieve and meet the organization's aim and objectives. The paper will briefly review the literature relating to financial reporting and analysis within the organizations. We are here to discuss the financial information needs in a manufacturing business, and how the production manager, marketing manager, director of finance, chief executive and shareholders can use those data to enhance the performance of the organization. Then, we will mention the categories and information required for each of the above internal stakeholder, and how it can be presented to them to perform their duties.

Financial Information entails the detailed analysis and information about the company. It helps all the stakeholders (external and internal) to have a proper and comprehensive understanding about the company. Creditors, Investors, Regulatory Bodies, Central Bank, Suppliers and government bodies can take information about the company as well. Financial information aide investors' insight as they are better able to make decision concerning the investment. Their needs and wants must be kept in mind, and they must be given most importance. It gives a complete picture of the company to various classes of society to enable informed and astute business decisions

Literature Review

[Second Paragraph of Literature Review]

The characteristics of the financial statements must be based on the characteristics of accounting information given in bulletin A-1 of the generally accepted accounting principles, which are:

Utility: The information content should be meaningful, relevant, accurate, comparable and timely.

Reliability: Should be stable (consistent), objective and verifiable.

Provisional: Contains information to determine estimates, which corresponds to a period.

In the following section, we are going to see why accounting information is needed for manufacturing organization (Gary et al 2009, 104-138).

Discussion

Users of Financial Information

Users of financial statements are those that use financial statements to make economic decisions, such as shareholders, partners, creditors, public finances, employees, investors who come to the stock market and authorities. The investors need accounting information users because they are interested in knowing the future benefits they will receive if they purchase or maintain a financial instrument or equity instrument. Creditors and suppliers need to know if the company will have cash to meet payment obligations in the short and long term, and the ability to generate profits. The general public, voters and their representatives need financial information to determine the transparency with which it has handled the state's resources. The user needs to know how much money the organization has and how much you owe them, the realizable value of fixed assets, which can be seen in the balance sheet.

Further in this paper, we will analyze the need for financial information of ...