Stakeholders (Cambridge International AS Accounting)
Exam board Cambridge International · ASUpdated 2026-02-24
Spec point — the differing requirements for information of stakeholders including: – owners – managers – employees – investors – lenders – suppliers – customers – government – public and environmental bodies how to communicate and analyse the information required by these different stakeholders
Stakeholders
Who are the stakeholders of accounting information?
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The stakeholders are the people or organisations that use the accounting information for decision-making
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There are internal and external stakeholders
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The accounting information might not always be available to all stakeholders
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Sole traders and partnerships can keep their financial statements private
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Whereas public limited companies publish their financial statements to the public
- Private limited companies have to publish some financial information
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Why might internal stakeholders of a business be interested in the accounting information?
| Stakeholders | Reason for their interest in accounting information |
|---|---|
| Owners | - To compare the performance with previous years - To plan for the future - To make decisions about which areas need action |
| Managers | - To check on the efficiency of the business - To check on the progress of the business compared to previous years |
| Employees | - To check that the business is profitable and likely to continue to trade so that they have job security - To assess performance as a basis for future salary negotiations |
Why might external stakeholders of a business be interested in the accounting information?
| Interested party | Reason for their interest in accounting information |
|---|---|
| Customers | - To check on the probability that their goods will continue to be supplied by the business |
| Suppliers | - To check whether the business can pay for its supplied goods as agreed - To examine the trade payables turnover to identify how long, on average, it takes the business to pay for its goods - To look at the trade receivables to assess whether there is still a demand for the supplied goods |
| Banks | - To assess whether the business is suitable for an overdraft or a bank loan - To assess the value of the assets owned by the business so that they can be used as security against loans |
| Investors | - To assess the profitability of the business - To assess the likelihood of the investors making money if they invested in the business |
| Lenders | - To assess performance in relation to the security of their loan to the business - To assess the performance in relation to the payment of the interest on the loan provided |
| Competitors | - To compare the profitability of the business against their own business - To identify gaps in the market |
| Government and tax authorities | - To calculate how much tax is owed - To gather data for the government statistics |
| Public and environmental bodies | - To assess performance in relation to ethical trading |
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