For each of the following entities, identify the objectives of financial reporting that the entity 's managers might have In answering, consider who the stakeholders might be and which stakeholder(s) would be most important to the managers Explain how the objectives of financial reporting would inf...

a The current users of the financial statements would include the owners the bank and the taxation authorities At this stage the prospective public investors would be most important Those investors wo ...

For each of the following entities, identify the objectives of financial reporting that the entity's managers might

Question:

For each of the following entities, identify the objectives of financial reporting that the entity's managers might have. In answering, consider who the might be and which stakeholder(s) would be most important to the managers. Explain how the objectives of financial reporting would influence the accounting choices made by the managers.
a. A family-owned that is planning to sell shares to the public and become a public company that is traded on a stock exchange.
b. A municipal government.
c. A public company that has been adversely affected by international competition and that is trying to receive subsidies from government.
d. A charity that raises money to buy and distribute food to hungry children around the world.
e. A private that provides consulting services to restaurants. The company has one shareholder who is also president of the company. The company has a small bank loan and no other major creditors.

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...