Iscuss the variety of users of financial statements and how the needs of financial statement users are met

The essay must not exceed 1500 words, excluding footnotes and bibliography. In the interest of fairness

The above question does not have a fixed answer. It requires you to show a good awareness of the literature that you been asked to read and the ideas that you have been exposed to. It is an opportunity to show your investigative and analytical skills.

Your essay should have a good structure: an introduction which specifies the purpose of the essay together with an indication of the structure (signposted), some understanding of the concepts, some illustration of the issues with examples and finally end with a summary and discussion.

The first step in answering the essay question is to understand what the question is asking you to do. The question requires you to reflect on who is the intended audience of the financial statements that are being prepared. In order to answer this broader question, the stepping stones that will help you are discussing who the users of financial statements are, and how their needs are being met. By studying this, you should be able to further unpack the main question.

Some key words and phrases you may want to use as a starting point are a?users of financial statementsa?, a?needs of financial statement usersa? and a?usefulness of financial statementsa?. You need to reflect on the broader nature of accounting in its current and modern form, and use the ideas and topics we have discussed in the lectures to unpack the question. Ask yourself these questions: who benefits from the financial statements? Who loses out? Why is this so? What can be done to rectify this a have these steps been taken?

It would be a good idea to supplement your essay with examples citing the production of some accounting standards. Some episodes appear on your reading lists. Others can be found through journals. After rehearsing arguments and evidence, you will need to reach a conclusion, as indicated by the question.