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Analysing Stakeholders of Organization - Report

   

Added on  2020-07-23

7 Pages1430 Words77 Views
Accounting Questions

ContentsINTRODUCTION...........................................................................................................................3Part 1................................................................................................................................................3A) Stakeholders of the company as per conceptual framework..................................................3B) Financial statements meeting needs of stakeholders..............................................................4Part 2................................................................................................................................................5A) Advantages and disadvantages of marginal and absorption costing techniques....................5B) Identifying costing systems for various types of industries....................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................6

INTRODUCTIONAccounting is quite crucial for the firm in attaining financial needs. Present report deals with analyzing various stakeholders of organization and how they are benefited by financial statements. Further, merits and demerits of marginal and absorption costing are also explained. Moreover, costing systems used in industries are discussed in this report. Part 1A) Stakeholders of the company as per conceptual frameworkThe stakeholders are important part of organization as they provide certain funds to company and have stake in the business as well. As per the IASB (International Accounting Standards Board), there are seven types of stakeholders listed below-1. Suppliers-The suppliers are those individuals who provide raw materials to the business on credit basis. This means that trade creditors or suppliers require to know financial position of the company whether money owing to them will be paid within stipulated time or not. Thus, they areusers of financial information as they supply goods to business and assess financial health in effective way (Petersen and et.al, 2018).2. Lenders-Lenders provide loan to the company with terms of repayment within time frame. They want financial information so that better and effective decision can be made by them regarding whether to lend money to organization or not. Thus, lenders are important stakeholders of firm. 3. Investors-Business needs funds in order to carry out daily activities in the best possible manner. This is possible when investor invests in the shares of the company and as such, funds are generated for meeting operational tasks by the business. Thus, they enjoy dividends on the sharessubscribed by them as company earns profit. 4. Customers-Customers are other stakeholders of the business which have interest in the continuity of business in the market. This is because they provides their demands and needs to company and as such, firm fulfills the same. Thus, customers are important stakeholders which have stake in the workings of company (Annisette, Cooper and Gendron, 2018).5. Employees-

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