Importancebase most organisational decisions on the information contained in financial reports
Current shareholders make informed decisions about their involvement with a business. They need to be well-informed before they invest, to ensure that they get a sound return on their investment
Lenders use financial reports when deciding whether or not to lend money to a business
This data gives the insight into whether a business will repay their loan on time
Financial data must be honest, reliable and truthful, to provide all stakeholders with a realistic image of a business’ performance
