... to a wide range of users in making economic decisions'. To simplify this definition; financial accounting is concerned with providing financial information to users so that they can make decisions. There are many users who use the information provided from the financial statements. Jones (2002) devised the following diagram which identifies the main users of accounting information: The information needs of outsiders differs considerably as they have different reasons for requiring the information. Shareholders are the primary user group of the information, they require the information to make decisions on their shares, whether to sell them or not. The suppliers require information about assets and the cash position the company is in order to assess the ability of the business to pay for the goods and services provided. The Lenders require information about assets and the cash position the company is in order to assess the ability of the business to meet its ...

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