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ACCOUNTING AND FINANCE Mengenai Saya Ade Yulia Amriyani
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Agency Theory
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Pemisahan pemilik dan manajemen di dalam literatur akuntansi disebut dengan Agency Theory (teori keagenan). Teori ini merupakan salah satu teori yang muncul dalam perkembangan riset akuntansi yang merupakan modifikasi dari perkembangan model akuntansi keuangan dengan menambahkan aspek perilaku manusia dalam model ekonomi. Teori agensi mendasarkan hubungan kontrak antara pemegang saham/pemilik dan manajemen/manajer. Menurut teori ini hubungan antara pemilik dan manajer pada hakekatnya sukar tercipta karena adanya kepentingan yang saling bertentangan (Conflict of Interest). Pertentangan dan tarik menarik kepentingan antara prinsipal dan agen dapat menimbulkan permasalahan yang dalam Agency Theory dikenal sebagai Asymmetric Information (AI) yaitu informasi yang tidak seimbang yang disebabkan karena adanya distribusi informasi yang tidak sama antara prinsipal dan agen. Ketergantungan pihak eksternal pada angka akuntansi, kecenderungan manajer untuk mencari keuntungan sendiri dan tingkat AI yang tinggi, menyebabkan keinginan besar bagi manajer untuk memanipulasi kerja yang dilaporkan untuk kepentingan diri sendiri. Pemilik atau pemegang saham sebagai prinsipal, sedangkan managemen sebagai agen. Agency Theory mendasarkan hubungan kontrak agar anggota-anggota dalam perusahaan, dimana prinsipal dan agen sebagai pelaku utama. Prinsipal merupakan pihak yang memberikan mandat kepada agen untuk bertindak atas nama prinsipal, sedangkan agen merupakan pihak yang diberi amanat oleh prinsipal untuk menjalankan perusahaan. Agen berkewajiban untuk mempertanggung jawabkan apa yang telah diamanahkan oleh prinsipal kepadanya. Aplikasi agency theory dapat terwujud dalam kontrak kerja yang akan mengatur proporsi hak dan kewajiban masing-masing pihak dengan tetap memperhitungkan kemanfaatan secara keseluruhan. Kontrak kerja merupakan seperangkat aturan yang mengatur mengenai mekanisme bagi hasil, baik yang berupa keuntungan,return maupun resiko-resiko yang disetujui oleh prinsipal dan agen. Kontrak kerja akan menjadi optimal bila kontrak dapat fairness yaitu manyeimbangkan antara prinsipal dan agen yang secara matematis memperlihatkan pelaksanaan kewajiban yang optimal oleh agen dan pemberian insentif/imbalan khusus yang memuaskan dari prinsipal ke agen. Inti dari Agency Theory atau teori keagenan adalah pendesainan kontrak yang tepat untuk menyelaraskan kepentingan prinsipal dan agen dalam hal terjadi konflik kepentingan (Scott, 1997). Menurut Scott (2000), terdapat dua macam asimetri informasi yaitu: 1. Adverse selection, yaitu bahwa para manajer serta orang-orang dalam lainnya biasanya mengetahui lebih banyak tentang keadaan dan prospek perusahaan dibandingkan investor pihak luar. Dan fakta yang mungkin dapat mempengaruhi keputusan yang akan diambil oleh pemegang saham tersebut tidak disampaikan informasinya kepada pemegang saham. 2. Moral hazard, yaitu bahwa kegiatan yang dilakukan oleh seorang manajer tidak seluruhnya diketahui oleh pemegang saham maupun pemberi pinjaman. Sehingga manajer dapat melakukan tindakan diluar pengetahuan pemegang saham yang melanggar kontrak dan sebenarnya secara etika atau norma mungkin tidak layak dilakukan. Teori Game (GT) Teori Game muncul akibat asimetri informasi antara lain: penyimpangan perilaku (moral hazard--MH). Game Theory adalah teori permainan ekonomi—economic theory of games atau disingkat dengan game theory. · mendasari isu-isu dalam teori akuntansi keuangan. · memodelkan interaksi dua atau lebih pemain, interaksi sering terjadi dalam keadaan ketidakpastian dan asimetri informasi. · asumsi: setiap pemain memaksimumkan utilitas harapannya. · lebih kompleks daripada teori keputusan dan teori investasi Ada banyak tipe game, antara lain: 1. Kooperatif: setiap pihak dapat masuk ke dalam persetujuan berikat (binding agreement), eg: Kartel. 2. Non-kooperatif: jika persetujuan tidak mungkin diberdayakan atas setiap anggota, eg: industri ologopolistik. Model Game non Kooperatif Konflik · Manajer-Investor Konflik antara konstituen pemakai Laporan Keuangan dapat dimodelkan sebagai suatu game, selama kebutuhan keputusan dari konstituen berbeda mungkin tidak tumpang tindih (coincide). · Game Theory menyediakan kerangka kerja formal bagi studi situasi konflik antar konstituen dan memprediksi keputusan yg akan dibuat pihak yg berkonflik. · Investor: butuh informasi Laporan Keuangan yang relevan & reliabel, untuk menilai harapan & risiko investasinya. · Manajer: pilih menghapus utang tertentu dari neraca, agar memudahkan meraih utang dengan memudahkan kontrak dengan kreditor; khawatir jika merilis terlalu banyak akan dimanfaatkan oleh pesaing. · Game non kooperatif: memodelkan situasi yang sulit untuk mempertimbangkan persetujuan berikat antara manajer dan investor tentang informasi khusus apa yang bisa disediakan. · Nash equilibrium: pasangan strategi (investor & manajer) yang merupakan pilihan strategi yang diberikan pemain lain, hasil prediksian game. Model Teori Game Kooperatif Banyak persetujuan kontrak yg berimplikasi pada akuntansi, dua tipe kontrak penting yaitu : 1. Hubungan kerja (employment): antar perusahaan dan manajer puncak, atau pemilik dengan agen_GT=AT Terbaik pertama: pemilik mendapat utilitas maksimum , dan manajer memperoleh utilitas cadangan. 2. Peminjaman (lending): antar manajer dan kreditor, secara aktual, AT memiliki karakteristik game kooperatif dan non kooperatif. Teori Agensi: Kontrak hubungan kerja antara pemilik dan manajer. · Kemanfaatan Informasi Manajer Keuntungan (payoff) tidak observabel oleh pemilik atau manajer hingga periode mendatang. · Laba bersih yang sekarang observabel oleh kedua pihak dipandang sebagai pesan rancu (noisy) tak bias tentang keuntungan mendatang. · Ketiadaan manajemen laba, dapat meningkatkan efisiensi pengontrakan dengan menurunkan keraguan melalui pengukuran yang ditingkatkan. · Prediksi PAT: manajer sering menyusun Laporan Keuangan dalam manajemen laba yaitu memungkinkan pemahaman lebih baik tentang peran laba neto sebagai ukuran kinerja. Berbagai macam bentuk manajer dapat mengambil manfaat informasi: 1. Informasi Pra-kontrak: manajemen tahu keuntungan yang akan terjadi. Inforamsi Pra-keptusan: setelah kontrak tapi sebelum bertindak. 2. Informasi Pasca-keputusan: manajemen mempelajari laba (yang unmanaged) sebelum dilaporkan. Untuk mengontrol manajemen laba adalah GAAP. Dlm kontrak utang: kreditor sebagai principal dan manajer sebagai agen. Ada problema moral hazard antara kreditor dan manajer: · Manajemen bertindak bertentangan dengan kepentingan terbaik kreditor. · Kreditor rasional akan mengantisipasi perilaku manajemen tersebut, dan memunculkan tingkat bunga yang mereka minta untuk dana yang dipinjamkannya. · Manajemen memiliki insentif untuk tidak bertindak dalam bentuk yang melawan kepentingan kreditor. Problema ini bisa diatasi dengan menyisipkan perjanjian ke dalam persetujuan utang, sehingga manajemen setuju untuk membatasi dividen atau pinjaman tambahan sementara loan beredar. Akibatnya perusahaan dapat meminjam pada tingkat bunga yang lebih rendah. · Rekonsiliasi Teori Pasar Efisien dengan EC : Perusahaan mampu mensejajarkan kepentingan manajer dan pemilik, konsisten dengan versi pengontrakan efisien PAT: 1. AT menunjukkan bahwa kontrak kompensasi yg terbaik dapat dicapai biasanya berbasis kompensasi manajer atas satu atau lebih ukuran kinerja, sehingga manajer memiliki insentif untuk memaksimumkan kinerja. 2. Selama kinerja lebih tinggi menyebabkan pembayaran harapan lebih tinggi, hal ini juga diharapkan oleh pemilik. 3. Sehingga dapat dipahami mengapa kebijakan akuntansi memiliki EC, meskipun berbeda dengan implikasi teori pasar efisien. Di bawah EMH: hanya kebijakan akuntansi yang mempengaruhi arus kas harapan yang menciptakan EC. EC dan pasar efisien tidak perlu inkonsisten: · Dapat direkonsiliasi dengan PAT dengan dukungan normatif dari AT yang menunjukkan mengapa perusahaan masuk ke dalam kontrak kerja dan kontrak utang yang tergantung pada informasi akuntansi. · Tanpa argumen ini, menyebabkan perhatian manajerial tentang kebijakan akuntansi bertentangan dengan efisiensi pasar. Konklusi atas Analisis Konflik : · Teori berbasis berbagai konflik memiliki implikasi penting bagi teori akuntansi keuangan: a. Teori konflik mampu merekonsiliasikan pasar efisien dan EC. b. Implikasi AT: laba bersih memiliki peran memotivasi & memonitor kinerja manajer · Laba bersih bersaing dengan ukuran kinerja lain, eg: harga saham. · Dalam keadaan ekstrem, manajemen laba memungkinkan manajer lalai, yang berakibat pembayaran yang rendah kepada pemilik. Oleh karena itu, GT merupakan komponen penting teori akuntansi finansial.
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ABOUT CLASS DIAGRAM 0 6 .5 0 |
Class Definition Diagram Class is a collection of objects with and that have a common structure , common behavior , common relationships , and semantic / general word . Classes determined / discovered by examining objects in sequence diagrams and collaboration diagrams . A class is described as a square with three parts of the room . Class should be named using a noun according to domain / section / group ( Jeffery L. Whitten et al , 2004) . Class Diagram is a diagram that shows the existing classes of a system and its relationship with logic. Class diagrams describe the static structure of a system . Because the class diagram is the backbone or basic strength of almost any object -oriented method including UML ( Henderi , 2008) . While according to ( Jeffery L. Whitten et al 2004:432 ) class diagram is a graphic image of the static object structure of a system , showing object classes that make up a system and also the relationship between the object class . Class diagrams are the most popular UML diagrams used for construction of software applications. So it is very important to learn the drawing procedure of class diagram. Class diagrams have lot of properties to consider while drawing but here the diagram will be considered from a top level view. Class diagram is basically a graphical representation of the static view of the system and represents different aspects of the application. So a collection of class diagrams represent the whole system. Class A class represents an entity of a given system that provides an encapsulated implementation of certain functionality of a given entity. These are exposed by the class to other classes as methods. Apart from business functionality, a class also has properties that reflect unique features of a class. The properties of a class are called as attributes. The UML representation of a class is a rectangle containing three compartments stacked vertically Association An association represents a relationship between two classes. An association indicates that objects of one class have a relationship with objects of another class, in which this connection has a specifically defined meaning. Diagram Class Diagram or hump is to describe the structure of the system in terms of the week was made to build ndefisian classes that will be created to build the system . class has what is called attributes and methods or operations . a. Attributes are the variables owned by a class . b . Operations or methods are functions that belong to a class Classes that exist in the structure of the system must be able to perform these functions in accordance with the needs of the system . The composition of both the class structure diagram keleas should have these kinds of classes as follows : 1 . Main class Is the class that has the initial function is executed when the system starts up 2 . Class that handles the display system Classes that define and set the display to the user 3 . Classes are taken from defining use case Class - handling function is a function that should be taken from the definition usecase 4 . Classes are taken from the data defining Class used to hold or wrap the data into a unit that will be taken and saved to the database so the purpose of the class diagram can be summarized as : - Analysis and design of the static view of an application. - Describe responsibilities of a system. - Base for component and deployment diagrams. - Forward and reverse engineering. Elements-elements relevant in modeling UML class diagram consists of: classes, class structure, the nature of class (class behavior), association / union (association), collection / unity (aggregation), dependency (dependency), derivatives relations, diversity and navigation indicators, and role name (role / task name). Class diagram symbols 1. Class: Class is a block - the building blocks of object-oriented programming. A class is described as a box that is divided into 3 parts. The upper part is a part of the class name. Defines the center of the property / class attribute. The final section defines methodmethod of a class. 2. Association: An association is a relationship between the 2 most common class and is represented by a line connecting the two classes. This line could symbolize the types of relationship and also can display the multiplicity of laws in a relationship. (Example: One-to- one, one-to-many, many-to-many). 3. Composition: If a class can not stand alone and must be part of another class, then the class has a Composition relation to the class in which he relies. A composition relationship is described as a line with a parallelogram-shaped tip contains. 4. Dependency: Sometimes a class uses another class. This is called a dependency. Generally use the dependency is used to indicate operation in a class that uses another class. A dependency is represented as a dotted arrow. 5. Aggregation: Aggregation indicates a whole part relationship and is usually referred to as relations. Class also has 3 main areas (main) ie: name, attributes, and operations. Serves for the member name identity on a class, an attribute function is for members only on the characteristics of the data owned by an object in the classroom, while the operations function is to provide a function to an object. In defining the existing methods in the classroom should be noted that his name Cohesion and Coupling, Cohesion is a measure of relevance instruction in a method, Coupling is a measure of the relationship between methods. In the class diagram there is a relationship between conceptual classes, called Relation between Class, in UML provided a variety of inter-class relationships, including: Association (static relationship between classes), aggregation (the relationship of the whole object), generalizations (some subclass relation to the super class), Dependency (connectedness of each class). One object diagram is designing a system that is used to describe object names, attributes and methods. An object diagram is a picture of the objects in a system at one time. This diagram is often also referred to as the command diagram, because the diagram of his commands more highlighted than class.
This is the example of class diagram about blog system:
Mengelola Profil(setNewProfil, editProfil)Attribute : userID,username,bio,email Operation : setid_Profil, s setuser_name,getuser_name,createpost,comment,share,updateprofile,uploadpic,removep ost,deletecomment,addfriend,deletefriend,subscribe,login.logout,editpost,editcomment Mengelola Post(inputNewPost, editPost, removePost)Attribute : isi_posting, tgl_isi_posting, panjang_isiPosting,link Operation : set_isiPost, get_isiPost, set_tglPost, get_tglPost Mengelola Category(addCategory,editcategory,deletecategory)Attribute : categoryID,categoryname Operation : set_category,get_category Mengelola Comment(inputnewComment, deleteComment, editComment)Attribute : isi_comment, tgl_sendcomment,email,penerima,panjang_isiComment Operation : setisi_Comment, getisi_Comment, settgl_send_Comment, gettgl_send_Comment
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About Use Case 0 5 .3 6 |
Use Case Diagram is a diagram that shows the functionality of a system or class and how the system interacts with the outside world and describes the system functional user visible . Usually made at the beginning of development . Use case diagrams describe the expected functionality of a system . The emphasis is on " what " is done for the system , and not the " how " . A use case represents an interaction between the actors in the system . Use case is a specific job , such as logging into the system , clicking -create a shopping list , and so on . A / an actor is a human or a machine entity that interacts with the system to perform certain tasks . Use case diagrams can be very helpful when we are putting together a system of requirements , design communicate with clients , and designing test cases for all the features that exist on the system . A use case can either include another use case functionality as part of a process in itself . It is generally assumed that the use case will be invoked every time include use cases include the clicking - executed normally . A use case can be include by more than one other use case , so that duplication of functionality can be avoided by pulling out the common functionality . A use case can also be extended another use case with its own behavior . While the relationship between use case generalization shows that one use case is a specialization of the other . Use case diagram is a graphical depiction of some or all of the actors , use cases , and the interactions between these components are introducing a system to be built . Use case diagrams describe the benefits of a system when viewed in the eyes of people who are outside the system . This diagram shows the functionality of a system or class and how the system interacts with the outside world . Use case diagrams can be used during the analysis process to capture system requirements and to understand how the system is supposed to work . During the design phase , use case diagrams serve to define the behavior ( behavior) when the system is implemented . In a model there may be one or more use case diagrams . Needs or requirements the system is what functionality should be provided by the system were documented in the use case model that describes the expected system functionality ( use cases) , and that surrounding (actor ) , as well as the relationship between the actor and the use case ( use case diagram ) itself . Components of the use case : 1. Actor A actor is a human or a machine entity that interacts with the system to perform certain tasks. 2. Case Description describes the actors involved. 3. Extend Relationships are used if the use case is a use case is similar to another. 4. include Relation if there is a behavior that is similar to a use case. Relations in the Use Case There are some relationships that are in use case diagram: 1. Association, the connecting link between the elements. 2. Generalization, also called inheritance (inheritance), an element can be a specialization of another element. 3. Dependency, an element depends in some way to every other element. 4. Aggregation, Association forms in which an element contains other elements. Types of relationships / stereotypes that may occur in the Use Case diagram: 1. >, ie behavior that must be met so that an event can occur, where the condition is a use case is part of another use case. 2. >, behavior that runs only under certain conditions such as moving the alarm. 3.>, may be added to the association that showed association was Communicates association. This is the association of choice for the type of relationship that allowed only between actor and use case. Benefits Use Case Model : • Used to communicate with end users and domain experts • Provide buy-in at the early stages of system development. • Ensure proper understanding of the requirements / needs of the system. • Used to identify • Anyone who interacts with the system and what the system should do. • Interface a must-have system. • Used to ferifikasi • All the requirements that have been captured. • The development team to understand the requirements. A blog is an internet media providing a personal note that can be seen all the local and international community, and become a medium to share the information with ease and gratis.Sebuah blog is a personal diary. Your pulpit every day. Political soapbox. Recent news outlets. Link farms. Your own private thoughts. Notes to the world. example, Usecase on the blog :
In the blog there are 3 entities are users, visitors, and admin gmail. Users can perform some activity on the blog, which can be memenage profile, manage post, manage category and manage comments. While visitors can only manage coment, view user profiles, and view posts. In the manage profile, the user can input the new profiles and edit profile. In managing the post, the user can input new post, edit post and removing the previous post. Manage in the category, the user can add a category, change and delete category. While managing comment, the user can enter comments, deleting comments and changing the previous comments. However, before carrying out the above activities as well as visitor user must be logged in and have admin approval gmail, passaword and email is entered in compliance or not. If it does not fit the user and the visitor can not carry out the above activities.
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Financial Management 0 0 .0 7 |
Financial Management can be defined as: The management of the finances of a business / organisation in order to achieve financial objectives Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to: • Create wealth for the business • Generate cash, and • Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested There are three key elements to the process of financial management: (1) Financial Planning Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. In the medium and long term, funding may be required for significant additions to the productive capacity of the business or to make acquisitions. (2) Financial Control Financial control is a critically important activity to help the business ensure that the business is meeting its objectives. Financial control addresses questions such as: • Are assets being used efficiently? • Are the businesses assets secure? • Do management act in the best interest of shareholders and in accordance with business rules? (3) Financial Decision-making The key aspects of financial decision-making relate to investment, financing and dividends: • Investments must be financed in some way – however there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers • A key financing decision is whether profits earned by the business should be retained rather than distributed to shareholders via dividends. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profits further.
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Accounting Concepts and Conventions 0 0 .0 0 |
In drawing up accounting statements, whether they are external "financial accounts" or internallyfocused "management accounts", a clear objective has to be that the accounts fairly reflect the true "substance" of the business and the results of its operation. The theory of accounting has, therefore, developed the concept of a "true and fair view". The true and fair view is applied in ensuring and assessing whether accounts do indeed portray accurately the business' activities. To support the application of the "true and fair view", accounting has adopted certain concepts and conventions which help to ensure that accounting information is presented accurately and consistently. Accounting Conventions The most commonly encountered convention is the "historical cost convention". This requires transactions to be recorded at the price ruling at the time, and for assets to be valued at their original cost. Under the "historical cost convention", therefore, no account is taken of changing prices in the economy. The other conventions you will encounter in a set of accounts can be summarised as follows: Monetary Accountants do not account for items unless they can be quantified in measurement monetary terms. Items that are not accounted for (unless someone is prepared to pay something for them) include things like workforce skill, morale, market leadership, brand recognition, quality of management etc. Separate Entity This convention seeks to ensure that private transactions and matters relating to the owners of a business are segregated from transactions that relate to the business. Realisation
With this convention, accounts recognise transactions (and any profits arising from them) at the point of sale or transfer of legal ownership - rather than just when cash actually changes hands. For example, a company that makes a sale to a customer can recognise that sale when the transaction is legal - at the point of contract. The actual payment due from the customer may not arise until several weeks (or months) later - if the customer has been granted some credit terms.
Materiality
An important convention. As we can see from the application of accounting standards and accounting policies, the preparation of accounts involves a high degree of judgement. Where decisions are required about the appropriateness of a particular accounting judgement, the "materiality" convention suggests that this should only be an issue if the judgement is "significant" or "material" to a user of the accounts. The concept of "materiality" is an important issue for auditors of financial accounts.
Accounting Concepts Four important accounting concepts underpin the preparation of any set of accounts: Going Concern Accountants assume, unless there is evidence to the contrary, that a company is not going broke. This has important implications for the valuation of assets and liabilities. Consistency Transactions and valuation methods are treated the same way from year to year, or period to period. Users of accounts can, therefore, make more meaningful comparisons of financial performance from year to year. Where accounting policies are changed, companies are required to disclose this fact and explain the impact of any change. Prudence Profits are not recognised until a sale has been completed. In addition, a cautious view is taken for future problems and costs of the business (the are "provided for" in the accounts" as soon as their is a reasonable chance that such costs will be incurred in the future. Matching (or Income should be properly "matched" with the expenses of a given accounting "Accruals") period. Key Characteristics of Accounting Information There is general agreement that, before it can be regarded as useful in satisfying the needs of various user groups, accounting information should satisfy the following criteria: Criteria
What it means for the preparation of accounting information
Understa This implies the expression, with clarity, of accounting information in such a way that it ndability will be understandable to users - who are generally assumed to have a reasonable knowledge of business and economic activities Relevanc This implies that, to be useful, accounting information must assist a user to form, e confirm or maybe revise a view - usually in the context of making a decision (e.g. should I invest, should I lend money to this business? Should I work for this business?) Consiste This implies consistent treatment of similar items and application of accounting policies ncy Compara This implies the ability for users to be able to compare similar companies in the same bility industry group and to make comparisons of performance over time. Much of the work that goes into setting accounting standards is based around the need for comparability. ReliabilityThis implies that the accounting information that is presented is truthful, accurate, complete (nothing significant missed out) and capable of being verified (e.g. by a potential investor). Objectivit This implies that accounting information is prepared and reported in a "neutral" way. In y other words, it is not biased towards a particular user group or vested interest
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Financial Accounting 2 3 .5 7 |
Financial accounting is a system that accumulates, processes and reports information about an entity's performance (i.e. profit or loss), its financial position (i.e. assets, liabilities and shareholders' equity) and changes in financial position. Every entity, whether for-profit or not-for-profit, aims at creating maximum value for its stakeholders. The goal of maximum value addition is best achieved when there is a mechanism to monitor the management and the board of directors. Financial accounting helps in such monitoring by providing relevant, reliable and timely information to the stakeholders. Inputs to a financial accounting system include business transactions which are supported by source documents, such as invoices, board resolutions, management memos, etc. These inputs are processed using generally accepted accounting principles (GAAP). The processed information is reported through standardized financial statements.
Users of the Financial Statements The most basic objective of financial accounting is preparation of general purpose financial statements, which are financial statements meant for use by stakeholders external to the entity, who do not have any other means of getting such information, i.e. people other than the management. These stakeholders include: Investors and Financial Analysts: Investors need the information to estimate the instrinsic value of the entity and to decide whether to buy, hold or sell the entity's shares. Equity research analysts use financial statements to conduct their research on earnings expectations and price targets. Employee groups: Employees and their representative groups are interested in information about the solvency and profitability of their employers to decide about their careers, assess their bargaining power and set a target wage for themselves. Lenders: Lenders are interested in information that enables them to determine whether their loans and the interest earned on them will be paid when due. Suppliers and other trade creditors: Suppliers and other creditors are interested in information that enables them to determine whether amounts owing to them will be paid when due and whether the demand from the company is going to increase, decrease or stay constant. Customers: Customers want to know whether their supplier is going to continue as an entity, especially when they have a long-term involvement with that supplier. For example, Apple is interested in long-term viability of Intel because Apple uses Intel processors in its computers and if Intel ceases operations at once, Apple will suffer difficulties in meeting its own demand and will loose revenue. Governments and their agencies: Governments and their agencies are interested in financial accounting information for a range of purposes. For example, the tax collecting authorities, such as IRS in USA, are interested in calculating taxable income of the tax-paying entities and finding their tax payable. Antitrust authorities, such as Federal Trade Commission, are interested in finding out whether an entity is engaged in monopolization. The governments themselves are interested in efficient allocation of resources and they need financial accounting information of different sectors and industries to decide on federal and state budget allocation, etc. The bureaus of statistics are interested in calculating national income, employment and other measures. Public: the public is interested in an entity's contribution towards the communities in which it operates, its corporate social responsibility updates, its environmental track record, etc.
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