Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 3.4 (A) (Stakeholders and Accounting info. (Business managers…
Chapter 3.4 (A)
Stakeholders and Accounting info.
Business managers
measure performance, provide info, set targets, control and monitor
Workforce
determine whether job secure, about profits, how average wage
Banks
whether lend money, allow increase or continue overdrafts
Creditors; suppliers
whether liquid enough to pay debts, business is a good credit risk, to press early repayment of outstanding debts
Customers
whether there'll be security spare parts
Government & tax authorities
Calculate how much tax
Investors & potential investors in a busines
whether business has potential for growth
Local community
Limitations of accounting info to stakeholders
One set of accounts is of limited use
Accounts do not measure items which cannot be expressed in monetary terms
The accounts of one business do not allow for comparisions
Business accounts will only publish the minimum information required by law
Accounts are historic
Window dressing (and its methods)
Recordng revenue expenditure as capita expenditure
Selling assets just before end of year
Encouraging early debt payments
Loans may be taken out just bf date of accounts
Inflating the value of intangible assets
The principles & ethics of accounting practice
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behaviour