I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Government and their agencies are interested in the allocation of resources and therefore in the 

activities of business entities. They also require information in order to provide a basis for national 

statistics. 

BPP Tutor Toolkit Copy

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CHAPTER 1  

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  INTRODUCTION TO ACCOUNTING 

 

11 

(i) 

The public. Entities affect members of the public in a variety of ways. For example, they may 

make a substantial contribution to a local economy by providing employment and using local 

suppliers. Another important factor is the effect of an entity on the environment, for example as 

regards pollution. 

Accounting information is summarised in financial statements to satisfy the information needs of these 

different groups. Not all will be equally satisfied. 

4.3 Needs of different users  

Managers of a business need the most information, to help them make their planning and control 

decisions. They obviously have 'special' access to information about the business, because they are able 

to demand whatever internally produced statements they require. When managers want a large amount 

of information about the costs and profitability of individual products, or different parts of their business, 

they can obtain it through a system of cost and management accounting.