Business – 10.4 Finance and accounting strategy – Use of accounting data | e-Consult
10.4 Finance and accounting strategy – Use of accounting data (1 questions)
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| Stakeholder Group | Directors’ Report – Usefulness | Financial Statements – Usefulness |
|---|---|---|
| Shareholders | Provides insight into strategic objectives, risk management and future outlook, helping shareholders assess long‑term value creation. | Shows actual financial performance, dividend‑paying capacity and return on investment, enabling shareholders to evaluate profitability and make investment decisions. |
| Creditors | Highlights the company’s risk profile, governance arrangements and any material contingencies that may affect repayment ability. | Provides quantitative data on liquidity, solvency and cash flows, which are critical for assessing credit risk and setting loan terms. |