FINANCIAL INFORMATION

MODULE: MANAGEMENT, CONTROL AND

ACCOUNTABILITY FOR FINANCIAL RESOURCES

FINANCIAL INFORMATION - THE NEEDS OF

INTERNAL STAKEHOLDERS

[Name of Instructor]

JUNE 2012

Table of Contents

Introduction1

Literature Reviews1

Need of Financial Information According to the Nature of Work3

Production Manager's Needs3

Marketing Manager's Needs5

Director of Finance's Need5

Chief Executive's Needs7

Shareholders' Needs7

Conclusion9

References11

Appendices12

MODULE: MANAGEMENT, CONTROL AND

ACCOUNTABILITY FOR FINANCIAL RESOURCES

FINANCIAL INFORMATION - THE NEEDS OF

INTERNAL STAKEHOLDERS

Introduction

The purpose of this assignment is to discuss how the financial information is and data can benefit the internal stakeholders to achieve and meet the organization's aim and objectives. We will briefly going to discuss some of 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.

Literature Reviews

Now a days more organizations than ever before recognize the importance of accounting information reports for internal/external use, and how it can effect on the business decisions.

'The essential destination of financial reporting is to furnish budgetary information to allow users of the information to settle on briefed determinations. Users combine both the administration of an association (inner users) and others not included in the everyday operations of the business (external users). External users typically try not to have access to the definite records of the business or the profit of day by day inclusion in the ensemble's undertakings. They settle on determinations dependent upon financial statements ready by administration. This comment demonstrates how nearly the goal of financial reporting is tied to determination making. The motivation behind financial reporting is to accommodate the users compass their determinations in an educated way” (Porter and Norton, 2009)

Here we are going to see why accounting information is needed for manufacturing organization. According to Akintoye (2009) growth within modern world have, with the passage of time accounting information apparently the most drastically foremost decision making tools relied upon by speculators. In view of the accompanying, Watchman (1980) opines that accounting records give proof that fancy expense accounting records upheld to underpin management estimation of unit price at the same time as a given period. Tyson (1992) contends that price accounting framework, in conjunction with managerial part, upheld a plank scope of choice in textile and assembling industries.

Fleishman and Tyson (1998) identify managerial decision-making and control as the primary use of accounting information during the industrial revolution in US and UK. Thus accounting is concerned with the provision of financial and other relevant information for making informed decision about allocation and management of resources and for appraising corporate performance.

Need of Financial Information According to the Nature of Work

Production Manager's Needs

One of the most critical positions and role within manufacturing organization is the role of production manager, that's why his success is one of the keys of his organization success. Production manager role is centered on ...