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Identify the main users of financial reports, explaining to what use(s) they may put such reports. To what extent is there a conflict between different uses? How far are these conflicts resolved in a single set of annual accounts? The financial reports are profit and loss account, balance sheet and cash flow statement. There are many users /parties interested in the accounts of a company /organization. These include the following: <Tab/&…

…by the general-purpose and standardized format of financial statements. Because it is very costly and impractical to produce a different financial reports to each and every specific users, it is widely accepted that a general-purpose financial statements be produced to satisfy the most needs of the all users. Standardized format would provide a easier way to make comparison of the business with its competitors as well as with the past reports of the business itself.