Answer to Question #78585 in Accounting for Liam Johnston

Question

You present the financials at the annual general meeting. Separately list three groups of stakeholders you expect to be at this event. How should each group be treated/ what would you expect from them?

Answer 1

Stakeholders can be real and potential investors, employees, lenders, suppliers and contractors, buyers and customers, authorities and the public.
At the annual general meeting, three groups of stakeholders are expected to be interested:
1) investors and their representatives are interested in information:
- riskiness and profitability of investments, on the basis of which it is possible to dispose of investments;
- the company's ability to pay dividends.
2) workers and their representatives (trade unions, etc.) are interested in information:
- stability and profitability of employers;
- the organization's ability to guarantee payment of labor and preserve jobs.
3) lenders are interested in information that allows to determine whether loans provided by their organizations will be repaid in time and corresponding interest will be paid.