2.2

• Internal users are part of the reporting entity and utilize the accounting information to come up with useful decisions for the company.
• External users are outside of the organization and indirectly access accounting information from the organizations of their interest.
• Decisions of internal users include management, owners, and employees.
• Management uses accounting information to determine whether operations are efficient, for budgeting, forecasting, and analysis of management accounting reports.
• Owners monitor investment and returns, assess business performance and financial position.
• Employees use accounting information to determine whether to continue the contract for employment or collectively bargain, based on sustainability and security of the company.
• Decisions of external users include investors and lenders.
• Investors are interested in putting capital to earn profit and make investment decisions based on appropriate use of equity and risks and returns.
• Lenders use accounting information to determine whether to extend credit and make lending decisions based on creditworthiness, liquidity, solvency, profitability, and other factors.
• Regulatory and Tax Authorities use accounting information to determine whether to confirm compliance or impose penalties, based on accuracy of reports and declarations and payment of taxes.
• Customers use accounting information to determine whether to buy goods or services, based on stability and pace of production.
• Suppliers use accounting information to determine whether to supply and set a credit limit, based on liquidity and capacity to pay obligations.
• The public uses accounting information in diverse ways and varying interests, including consumer decisions.