Most business, industrial and agricultural organizations must present accounting information according to accounting standards, information being collected through financial transactions, to be used by internal and external users.
Of the latter we can mention the three most outstanding:
1.- the creditors: natural or legal person to whom money is owed.
2.- the shareholders: individuals who have contributed their capital to become owners or shareholders of the company.
3 .- government authorities: given the obligation that exists on one side and the other, the commitment of companies to deliver a percentage of their profits in the form of tax to the tax authorities.
However, in the same way that external users need financial information, managers of an economic identity, represented mainly by people in charge of higher levels such as: functional directors, area managers and department heads, have the need to monitor the performance of the entity for which they work and the result of their own work. This information by nature is of a level of detail much greater than that provided to external users. Therefore, they are not governed by laws or other provisions, but exclusively by the need for information and the creativity of those who prepare it.
Hence the importance of highlighting that the accounting information is used by said users, to make decisions, through a financial analysis of the operations, taking into account the quantitative and qualitative attributions for the adequate compression and interpretation of the values that are reflected in the financial statements of an organization.
Quantitative attributions refer to the calculation of financial transactions, while qualitative attributions include the importance of financial information, by the owners of the companies. Bad information leads to making decisions or making managers, partners or owners of the company make incorrect assessments of their operations.
That is why the information provided by the financial statements should be timely and understandable for users who have a reasonable knowledge of economic, business and agricultural activities that may be useful to their future recipients, since the recipients of such information do not have that to be specialists in accounting, it should only be clear, precise and accessible to the beneficiaries of the same.
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@willians
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