The annual accounts and report are primarily prepared by the directors to the shareholders. However, the following parties need financial statements.
i. Those parties with vested interests in a business.
- Creditors or suppliers
- Lenders and debenture holders
- The management
- The shareholders to whom the financial statements are addressed.
- Credit rating agencies.
ii. Those with potential interests
- Potential shareholders
iii. Those with representative interests
- The government
- The general public.
- Stock brokers
- Financial journalists
- Trade unions.