Users of financial information can be classified by various distinctions:
Direct vs. Indirect Users – Direct users are those who are directly affected by the results of a company. Direct users include investors and potential investors, employees, management, suppliers and creditors. Direct users are individuals who stand to lose money financially if the company has financial problems.
Indirect users are those people or groups who represent direct users. They include financial analysts and advisors, stock markets and regulatory bodies.
Internal vs. External – Internal users make decisions within the firm whereas external users make decisions from outside of the firm about whether or not to begin a relationship with the firm, continue a relationship with the firm, or change their relationship to the firm.
External Financial Reporting Decisions