State the users of accounting information
Environment has brought new challenges for managers and other users of accounting information. Their requirements have changed and both financial accounting and management accounting have had to respond. To meet changing needs of users there has been a radical review of the kind of information to be reported. Changing business environment has given added impetus to the search for a clear framework and principles upon which to base financial accounting reports. Numerous attempts have been made to clarify purpose of financial accounting reports and to provide a more solid foundation for development of accounting rules.