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Financial Statements
There are several users of financial statements in an organization's context. First, there are the investors and owners of the firm who are the organization's stockholders (Cascino et al., 2014). The management also uses these financial statements alongside lenders, employees, consumers, trade creditors and suppliers, and the general public. All these individuals who use financial statements are grouped into either external users or internal users (Cascino et al., 2014). Internal users comprise of management who will use the information to make decisions relating to the firm's operations while the other users are categorized as external users.
Financial statements are written records conveying a firm's business activities and financial performance. The records convey information pertinent to an organization's credit decisions, cash flow prospects, and investing decisions (Cascino et al., 2014). The information is useful because it allows stakeholders to learn about the firm's liabilities, assets, and stakeholder's equity. It also sheds light on management on what decisions are required to realize the firm's goals while also showing relevant stakeholders the firm's standings to safeguard their financial interests (Cascino et al., 2014).
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The AICPA is the largest member association representative in the accounting vocation. The purpose of the AICPA website is to facilitate the accounting profession (AICPA, n.d). The AICPA offers accountants a chance to join and become a member. The content on the website is designed to challenge the members of the organizations or visitors to the organizations to seize the day and achieve the next career milestone (AICPA, n.d). The website provides ways for people to explore the journey they wish to take in accounting. It also helps in rulemaking and standard-setting in the CPA profession. The organization also advocates for its members before public interest groups, legislative bodies, and other professional firms (AICPA, n.d). Overall, the organization enforces adherence to moral and technical canons and establishes accounting to be a profession of high professional standards, rigorous education, and promise to serve the public’s interest.
References
AICPA. (n.d). AICPA mission and history. https://www.aicpa.org/about/missionandhistory.html
Cascino, S., Clatworthy, M., García Osma, B., Gassen, J., Imam, S., & Jeanjean, T. (2014). Who uses financial reports, and for what purpose? Evidence from capital providers. Accounting in Europe, 11(2), 185-209. http://eprints.lse.ac.uk/57683/1/__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_Cascino,%20S_Who%20uses%20financial%20reports_Cascino_Who%20uses%20financial%20reports_2015.pdf
