The objective of financial statements is to provide information about the reporting entity's financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity's management and for making economic decisions (Statement of Principles for Financial Reporting).
Required
a. State five potential users of company published financial statements, briefly explaining for each one their likely information needs from those statements.
b. Briefly discuss whether you think that UK company published financial statements achieve the objective stated above, giving your reasons. Include in your answer two ways in which you think the quality of the information disclosed in financial statements could be improved.