Assignment 1 Semester 2 2025
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Due Date: 20 August 2025
QUESTION 1
Financial statements are not only prepared for compliance but also serve as vital tools for a
wide range of stakeholders who depend on them to make informed decisions.
These stakeholders include:
Shareholders
Shareholders are the legal owners of a company, and their main concern is the profitability
and sustainability of their investment. Financial statements allow them to assess whether the
company is generating sufficient returns, either through dividends or capital growth. Since
shareholders forego alternative investment opportunities such as interest on savings or
rental income, they rely on accurate financial reports to evaluate whether the company is
achieving its financial goals and maximising their wealth.
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