topic 2

• Internal Users are primary users who belong to the reporting organization and whose decisions affect the entity directly.
• Internal Users include owners, investors, and stockholders who provide financial assets and resources and are interested in keeping track of the performance of the company to determine the value of their investments.
• Examples of Internal Users include sole owners, partners, and shareholders.
• Management administers tasks within the organization and is interested in evaluating the company’s progress to make organizational and operational decisions.
• Examples of Management include executives, heads of departments, sections, regional operations, supervisors, and frontline managers.
• Employees work for an organization under a contract of employment and are interested in fair wage, job security, and stability.
• Examples of Employees include managers and rank-and-file.
• Creditors provide funds in exchange for interest earnings and do not acquire ownership to the enterprise.
• Creditors use financial information to determine if an organization can pay its obligations.
• Examples of Creditors include banks and financial institutions.
• Government legislates and enforces tax policies and other laws and uses accounting information to determine compliance.
• Examples of Government include BIR, SEC, and Congressional committees.
• Potential Investors are interested in buying stocks and use financial information to determine a reasonable rate of return.
• Examples of Potential Investors include individuals, companies, and investment banks.