Chapter -9

Financial statements - 1

Stakeholders and their Information Requirements

A stakeholder is a person associated with the business. The stakes of various stakeholders can be monetary or non-monetary. The objective of business is to communicate the meaningful information to various stakeholders in the business so that they can make informed decisions. The stakes can be active or passive; or can be direct or indirect. The owner and persons advancing loan to the business would have monetary stake. The government, consumer or a researcher will have non-monetary stake in the business.
The stakeholders are also called users who are normally classified as internal and external depending upon whether they are inside the business or outside the business. All users have different objectives for joining business and consequently different types of information requirements from it.

Classified category of internal and external users specifying their objectives and consequent information requirements.