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Class 11 Accountancy Notes · GSEB

Users of Accounting Information

Users of Accounting Information — Identify the 12 stakeholder groups who rely on accounting information and their specific needs. GSEB Class 11 Commerce Accountancy notes.

Last updated: 1 Aug 2026

Notes

Internal vs External Users

Accounting information serves two broad categories of users: Internal Users (people inside the organization) and External Users (people outside who rely on published accounts).

1.

Management — Board of directors undertakes management. Effect of policy decisions reflected in accounts. Accounts identify variances by comparing planned estimates with actual results.

2.

Employees — Acquire information about salary improvement, bonus, job safety. Profit of accounts important for employees — present demands before management on basis of profit. Sound economic condition → estimate security of service and development.

Key Takeaways

Key Takeaways

  • Internal users: Management (uses accounts to measure efficiency) and Employees (uses profit data for salary/bonus negotiations).
  • External users include shareholders, creditors, tax authorities, customers, regulatory bodies (SEBI, IRDA), professional bodies (ICAI, ICSI), researchers, and government.
  • 12 distinct categories of users rely on accounting information for different purposes.
  • Regulatory bodies like SEBI and professional bodies like ICAI set the standards that make accounting information reliable and comparable.