Interested Parties

Exam code: 7707

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

The interested parties are the people or organisations that use the accounting information for decision-making
There are internal and external interested parties
The accounting information might not always be available to all interested parties
- Sole traders and partnerships can keep their financial statements private
- Whereas public limited companies publish their financial statements to the public
  - Private limited companies have to publish some financial information

Interested party	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

Interested party	Reason for their interest in accounting information
Trade receivables (and customers)	To check on the probability that their goods will continue to be supplied by the business
Trade payables (and 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
Competitors	To compare the profitability of the business against their own business To identify gaps in the market
Club members	To assess whether the club is likely to continue to operate so that they can continue to use the facilities available
Government and tax authorities	To calculate how much tax is owed To gather data for the government statistics

Internal parties