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Accounting information is extremely important for Goverments, first of all, for tax calculations. It is also important because company performance indicates how a country economy is performing, and it is the main source of information for several economic indicators and for the design of economic policies. Roberto Ramil.

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In countries where company information is public, it is common to analyze competitors’ financial statements in order to create benchmarks (e.g., profit margins, expenses, etc.), understand the results of the different strategies they may be using or have implemented, and compare a firm’s results with those of its competitors and their potential financial situation. This can be extremely useful information when designing a company’s own strategy. Roberto Ramil.

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For creditors, accounting information is essential to evaluate a company’s ability to meet its debt obligations. By analyzing the financial statements and several financial indicators such as liquidity, leverage, cash flows and profitability, creditors can assess the risk of a determined company and decide whether to grant credit, set interest rates, or determine loan conditions. Roberto Ramil.

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For suppliers, accounting information about their clients is useful in two main ways. First, it provides insights into the size of the company, its sales volume, potential purchasing capacity, cost structure and profit margins. This information is essential to understand how the company operates and represents a key input when negotiating prices, volumes, and other conditions. Second, similarly to creditors, suppliers can use financial statements to assess a company’s solvency and short-term financial stability. This helps them decide whether to grant trade credit, define payment terms, or limit their exposure. Roberto Ramil.

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Customers looking to engage in strategic or long-term relationships can obtain valuable insights from accounting information in order to assess whether a company is financially stable and capable of fulfilling its commitments.

This is particularly important when customers depend on a supplier for critical goods or services, as financial instability could disrupt supply or service quality.

Financial statements also help customers evaluate whether a company is large enough to meet significant demand, has sufficient experience, and has been able to operate profitably while doing so. Entering into a relationship with a company that has consistently reported losses would be risky when what is at stake is a key product or service. Roberto Ramil.

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Employees and potential employees use financial statements to evaluate a company’s financial health, stability, and long-term viability. Strong financial performance can indicate job security, growth opportunities, and the company’s ability to offer competitive wages, benefits, and career development. Roberto Ramil.

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Creditors/banks use accounting information to assess credit risks and repayment ability of the business. Here, before approving any loans, the leverage of debt (total assets/equity) and cash flows are of significance.

~ Eduard Guse

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Typically, a businesses collaborate with multiple suppliers. Here, the liquidity, or basically, knowing "if the firm can pay its bills on time" is strongly of interest. If liquidity is bad, a trade credit by the supplier may not be granted in for the business.

~ Eduard Guse

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Employees seek job security and potential wage growth. If the review is profitable, this helps them in negotiating for salary increases.

~ Eduard Guse

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Customers prefer financially stable firms for their long-term service reliability and prosparity for society. Factors like stability, pricing power, and social impact may be of interest.

~ Eduard Guse

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A rival compares margins to assess cost efficiency of competitor to benchmark performance and strategy.

~ Eduard Guse

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Government officials and tax authorities use reported profits to calculate corporate taxes in advance. Depending on market dynamics, new taxations and regulations may be derived to enforce on affected market.

~ Eduard Guse

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Creditors use accounting info to judge repayment risk. Liquidity, leverage, and cash flow show whether the firm can service debt and survive downturns.

Martin Neumann

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Suppliers look at financial statements to assess payment reliability. Strong liquidity and stable profits increase trust and support better trade credit terms.

Martin Neumann

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Employees use accounting information to evaluate job security and long-term stability. Profitable firms are more likely to offer stable employment, wage growth, and career opportunities.

Martin Neumann

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Customers, especially in long-term relationships, care about financial stability. A weak balance sheet could signal delivery risks or service disruptions.

Martin Neumann

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Competitors analyze financials to benchmark margins, cost structures, and strategy. This helps them understand competitive positioning and market dynamics.

Martin Neumann

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Governments rely on accounting data for taxation, regulation, and economic policy. Corporate profits signal sector health and broader economic performance.

Martin Neumann

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Accouting information are the basis for bonus payments, as they are linked to measurable financial results such as profit or revenue. Thus these payment can be calculated transparently based on the actual performance.

Julian Twent

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Financial stability (and eventually potential for grow) are one of the criteria used by customers (especially in the B2B set-up) to screen for potential long-lasting relationship with thier suppliers. In this extent, the balance sheet turns to be a useful source of information.

Federico Tai

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Suppliers may use the accounting information to evaluate the liquidity of the company and therefore ability to pay bills. Additionally they may use the accounting information to value the customer based on its size, profit and outlook.

Olivier

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Employees may use the accounting information of a company to gain a sense of security of employment, estimate rewards they may claim and understand their company's position in the marketplace, for example vs competitors.

Olivier

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Customers may be interested in a supplier's accounting information to gauge their financial health as part of supply risk evaluations, aid their procurement in understanding profitability of supplier to potentially create leverage for pricing negotiations.

Olivier

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Creditors use the accounting information to gain insights into the financial health of the company and the risk of lending it cash. A credit rating can be used to direct conditions of cash loans but also help other companies like suppliers and customers benchmark the ability of the company to pay its debts.

Olivier

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Although B2C might care about accounting information, especially with long-term relationships (memberships, subscriptions, or even expensive items that require maintenance such as the automotive industry), in B2B markets the accounting information is crucial. When companies rely on the services and products of another organization, they need the security to know that they have the resources and the financial health to deliver their part of the deal.

Mariana Macedo

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Governments use accounting information to assess taxable income, ensure tax compliance, and evaluate whether firms are contributing fairly to public finances. Financial statements also help regulators monitor economic stability, enforce accounting standards, and design sector-specific policies (e.g., subsidies, environmental regulation). Severin Eisner

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Competitors use accounting information to benchmark their own performance against peers, assess cost structures, profitability, and investment intensity, and anticipate strategic moves such as expansion, pricing pressure, or capacity investments. Financial statements help competitors understand where advantages or weaknesses may lie within the industry. Severin Eisner

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Employees use accounting information to assess the financial health and stability of their employer, which affects job security, wage negotiations, bonuses, and long-term career prospects. Profitability and cash flow information can also signal whether the company can invest in growth, training, and future opportunities. Severin Eisner

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Creditors use accounting information to evaluate a firm’s ability to meet its repayment obligations. They analyze indicators such as liquidity, solvency, and profitability to assess the level of risk. Based on this assessment, they decide whether to extend credit and determine the appropriate credit terms.

Tala Hamarneh

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Suppliers use accounting information to assess whether a business can pay for goods and services in a timely manner. They focus on liquidity, profitability, and payment history to decide whether to offer trade credit, set payment terms, or require advance payment.

Tala Hamarneh

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Employees use accounting information to assess the financial stability of the business. They focus on profitability and cash flows to evaluate job security, the company’s ability to pay salaries and benefits, and the likelihood of bonuses, pay increases, and professional development opportunities.

Tala Hamarneh

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Customers use accounting information to assess whether a business is financially stable and reliable. Strong financial performance and cash flows indicate that the company can consistently deliver products or services, honor warranties, provide after-sales support, and remain a dependable long-term supplier, particularly for repeat purchases or long-term contracts.

Tala Hamarneh

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Competitors use accounting information to benchmark their performance against others in the industry. They analyze revenues, cost structures, profitability, and investment levels to understand pricing strategies, operational efficiency, and market positioning, and to inform their own strategic decisions.

Tala Hamarneh

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Government authorities use accounting information to calculate taxes, ensure legal and regulatory compliance, and monitor business activity. Financial statements help them verify reported income, ensure compliance with tax and labor rules, and support economic oversight.

Tala Hamarneh

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Government uses accounting information to decide on interventions.

During the corona pandemic, Lufthansa faced a severe liquidity crisis. In response, the German state acquired approximately 20% of the company as part of a stabilization package.

The decision was based on comprehensive due diligence, including a detailed assessment of accounting and financial information.

In line with a predefined exit strategy, the state subsequently divested its stake once Lufthansa’s financial stability had been restored. The shares were sold on the market, and the state exited with a net profit.

Ironic assumption: had a private company realized an equivalent net profit under comparable circumstances, it might have been politically framed as unjustified (German “Übergewinn”) and subjected to calls for special taxation.

Stephan Schneider

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Government uses accounting information to decide on interventions.

During the corona pandemic, Lufthansa faced a severe liquidity crisis. In response, the German state acquired approximately 20% of the company as part of a stabilization package.

The decision was based on comprehensive due diligence, including a detailed assessment of accounting and financial information.

In line with a predefined exit strategy, the state subsequently divested its stake once Lufthansa’s financial stability had been restored. The shares were sold on the market, and the state exited with a net profit.

Ironic assumption: had a private company realized an equivalent net profit under comparable circumstances, it might have been politically framed as unjustified (German “Übergewinn”) and subjected to calls for special taxation.

Stephan Schneider

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Govenments use company accounting informaiton widely.

Some uses include:

Taxation

regulatory compliance monitoring

policy making (e.g. investment tracking, employment trends, health of certain industries, etc.)

Procurment and contracting decision making (essentially when acting as a customer)

ESG monitoring

and others

Martin Seitz

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Creditors look at accounting information like a credit score to decide if it is safe to lend the company money. They want to be absolutely sure the business is making enough profit to pay back the loan plus interest on time. Based on this information, they negotiate credit terms, credit extension etc.

Gaurangi Saxena

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Suppliers function as "trade creditors" and are primarily concerned with a company’s short-term liquidity. They use accounting data to decide whether to offer goods on credit and to establish appropriate payment terms based on the likelihood of being paid on time.

Gaurangi Saxena

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Employees analyze the company’s profitability and stability to gauge their own job security and potential for future raises or bonuses. Unions may also use these financial insights during collective bargaining to negotiate for better wages and benefits.

Gaurangi Saxena

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Customers look at a company's financial health to assess the stability of a key supplier, especially when entering into long-term contracts. They need to know if the company will remain in business long enough to provide ongoing support, honor warranties, and fulfill service reliability expectations.

Gaurangi Saxena

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Competitors use publicly available financial reports to perform benchmarking, comparing their own performance metrics against industry rivals. By analyzing a rival's profit margins and investment patterns, they can identify market trends and areas where they might gain a competitive advantage.

Gaurangi Saxena

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Governments use accounting information to ensure businesses are complying with tax laws and to calculate the correct amount of tax owed. They also use this data for regulatory oversight, ensuring that companies follow standardized reporting practices to maintain market fairness.

Gaurangi Saxena

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Uses information to assess liquidity, solvency and the firm’s ability to repay debt and interest on time.

-Sehoon Chang

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Uses information to evaluate short-term financial health and decide whether to extend trade credit and payment terms.

-Sehoon Chang

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to assess job security, firm stability and prospects for wages, bonuses, and long-term employment.

-Sehoon Chang

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Creditors can manage risks by evaluating whether this company has the ability to pay back money when loaning money. They can also decide loan conditions such as how much money, interest, credit terms do they want to loan based on such information.

Emily (Li Chen) Yu

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When working with a company, suppliers can evaluate this customer by looking at their current ratio, accounts payable turnover and profitability etc to decide which type of cooperation do they want with this customer. A financially healthy buyer may receive longer payment terms (e.g., net 60 instead of net 30) while signs of distress may push suppliers to demand cash in advance.

Emily (Li Chen) Yu

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Employees of the company can rely on numbers to ensure job security, expect bonuses and raises for their individual future career planning within this company or seek for external opportunities. Repeated losses or declining margins may signal layoffs, hiring freezes or restructuring.

Emily (Li Chen) Yu

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Similar to suppliers, customers can use accounting information to decide whether a firm will be a reliable long-term partner (in B2B relationship) or judge product reliability (in B2C relationship). Strong financials reassure customers that the company can deliver warranties, maintain service, and survive the contract period while weak financials raise concerns about supply disruption or service failure.

Emily (Li Chen) Yu

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Competitors can analyze financial statements of the company to make their market strategies by understanding the company's strategic priorities and decisions such as pricings and costs. This helps reading the rival's future competitive movements so that they know where they stand at right now and which next step they would want to take when planning for their own strategy.

Emily (Li Chen) Yu

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For government, the most important thing is to use accounting information to collect taxes and monitor compliance. In addition to such, they can also collect data for the industry to analyze market situations and assess/monitor economic health.

Emily (Li Chen) Yu

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Creditors (e.g., banks) analyze balance sheets and cash flows to assess creditworthiness, solvency, and repayment ability before granting loans or credit. They focus on liquidity ratios and debt levels to minimize default risk.

Michail Strompolas

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Suppliers review financial statements to evaluate a buyer's ability to pay on time, especially for credit terms. They check liquidity, profitability, and stability to decide whether to extend credit or supply goods reliably.

Mike Strompolas

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Employees (and unions) examine income statements and cash flows to gauge job security, future wage increases, bonuses, and pension funding. Strong profitability signals better compensation and long-term employment stability.

Mike Strompolas

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Customers, especially for long-term contracts, study financials to confirm a supplier's stability and ability to deliver consistently. They want assurance the company won't fail mid-contract, ensuring reliable products/services.

Mike Strompolas

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Competitors use public financial statements to benchmark performance, compare profitability, margins, and identify strengths/weaknesses. This informs strategic decisions like pricing, market positioning, or spotting opportunities/gaps.

Mike Strompolas

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Mostly for tax reasons and compliance with regulations.

Mike Strompolas

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Employees use accounting information to assess whether the employer can sustainably fund pension obligations, which are long-term liabilities of the firm.

Rebecca Pätzold

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Determine tax liabilities and compliance

Monitor financial health for regulation or subsidies

Use accounting data for policy and enforcement decisions

Siddhant

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Evaluate job security and firm stability

Use profit trends to assess bonus potential and wage negotiations

Pension funding and long-term viability matter

Siddhant

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Creditors rely on accounting information to assess a company's ability to repay loans. They look closely at liquidity (cash, receivables), leverage, and the quality of assets. Strong, reliable financial statements reduce perceived risk and influence interest rates, loan terms, or even whether credit is extended at all - Cathy

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Employees would use accounting information to assess job security as they would be employed only if the company performs well and is able to continue growing.

-Kee

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Accounting would be a main source of information for creditors to decide whether a loan should be granted as they would be able to deduce whether the company is reliable and would repay the loan at some point or not.

-Kee

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Suppliers would choose to supply to a company that has a higher growth potential as seen from the accounting information. This will help them predict their future earnings as well. They would be able to decide whether they should continue supplying to a company or reach out to a competitor if they are performing better.

-Kee

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Competitors use accounting information to get a sense of how well a company is doing and what it is focusing on. Revenues and margins can show whether a company is growing, cutting costs, or struggling. Balance sheet items can hint at where money is being invested, such as new equipment etc. This helps competitors think ahead and adjust their own plans.

Gul Sanliturk

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creditors may use this information to simply understand whether extend more credit, or whether a company will be able to pay off the debt or what kind of terms are to be set for lending money.

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suppliers would use accounting information to figure out if the company can pay for the raw-materials in the short term. Do they have enough equity or liquidity at hand to keep paying the bills for the supplied resources.

piyush

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Employees can use this information to figure out the company health and long-term job security.

Nowadays, many companies also have share matching plans and provide shares as part of renumeration. It could give a hint for any potential employee whether it is worth investing in the such schemes or even take up a job at a company offering large parts of salary as the shares.

piyush

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financial stability of the company is the main interest of the customers/investors. Long term contracts or collaboration could be based on future forecast of companies' financial health and can be a major driver for attracting or retaining business.

~piyush

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Competitors would try to "gauage" the strategy by looking at publicly available balance sheet. Whether companies or CEOs are on cost-cutting mode, are they spending more on R&D (innovation) or are they focusing on improving the operating margins etc. This could give a hint on the future operating strategy for the competitors which could be then used to decide on a competitor's own strategy.

~piyush

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Governments may look at accounting information to know if there are regulatory issues (mis-representation of data, financial frauds) or if the company health is bad enough to intervene because of the impact on the economy (jobs, industry impact on prices etc.)

~piyush

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While searching for a job, or considering if one should stay at their current company, accounting information can give insight into the company's financial health, decisions, and outlook. They can see trends and evaluate stability. Liz

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Accounting information of a company helps its suppliers plan their own inventories accordingly. Positive sales trends would motivate the supplier towards stocking more inventory to be better prepared for higher demand

Cosan