Who are the primary users of financial information?
Primary users are described as those ‘existing and potential investors, lenders and other creditors that cannot require reporting entities to provide information directly to them and must rely on general purpose financial statements for much of the financial information they need.’ Primary users of general purpose financial reports
Who is the first and foremost user of financial statements?
The management of the company is the first and foremost user of the financial statements. Although they are the ones who prepare the financial statements, the board and the management need to refer to them while considering the progress and growth of the company.
Who are the external users of the financial statements?
External users of the financial statements will include: 1) Regulatory agencies: Regulatory... Primary users of the financial statements are considered existing and potential investors, creditors, and lenders.