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

 

1

   Information required by users 

Users of financial statements can gain a better understanding of the significance of the information in 

financial statements by comparing it with other relevant information.  

The accounts of a business are designed to provide users with information about its performance and 

financial position. The bare figures, however, are not particularly useful and it is only through comparisons 

(usually in ratios) that their significance can be established. Comparisons may be made with previous 

financial periods, with other similar businesses or with averages for the particular industry. The choice will 

depend on the purpose for which the comparison is being made and the information that is available. 

1.1 User groups 

Various groups are interested in the performance and financial position of a company.  

(a)