Elaboration of Finance Information for Non-Management External Users

Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Detailed elaboration and examination of the information that is related with finance and how it
meets the requirements of five different external users that are of non-management in nature..1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Accounting in business carriers a lot of value as it helps in identifying, recording, reporting,
summarising, analysing, and interpreting all the relevant things that are necessary in a business
firm so that it can add value to the company in the long run (Bratianu and Vatamanescu, 2017). It
helps the firm to take appropriate decisions that can further prove beneficial for the organisation
in increasing its performance that can result in improved profitability and growth in the market in
which it is operational. In this report there is a brief discussion of a firm named British American
Tobacco that is geographically located in the UK and is operational since 1902 and deals in
cigarette, nicotine, and tobacco products. Apart from this the report also covers a detailed
elaboration of the five non-management external users in the company.
MAIN BODY
Detailed elaboration and examination of the information that is related with finance and how it
meets the requirements of five different external users that are of non-management in
nature
Financial statement is one of the most important as well as crucial aspect for each and
every firm that is operation in the market as it is related with the allocation and allotment of
funds in an appropriate manner so that it can add value to the firm in the market. There are many
external users and the ones that are explained below are as follows-
Investors- They are the individual or group of persons or an organisation that invests
money in the business so that it can fetch higher rate of return and can prove beneficial in overall
conditions. Investors take cue from the financial statement that the company is performing up to
standards or not and then invest their money so that it can give better returns in the near future as
compared to other assets.
 Weakness of financial information- The main disadvantage of this is that it can
sometimes give a false picture of the enterprise and thus making people invest in it which
can result in heavy losses in the future.
Regulatory Agency- These are agencies that are formulated specially to check all the
activities that are performed by the company in order to assure that all the works that are done in
the firm are legal and the organisation does not go beyond the authorities.