External users of accounting information are individuals and other enterprises that have a financial interest in the reporting enterprise, but they are not involved in the day-to-day operations of that enterprise. External users of financial information include the following:

  • Owners
  • Creditors
  • Labor unions
  • Governmental agencies
  • Suppliers
  • Customers
  • Trade associations
  • General public

Each of these groups of external decision makers has unique information needs to be able to make their decisions about the reporting enterprise. For example, customers who purchase from the enterprose need information to allow them to assess the quality of the products they buy and the faithfulness of the enterprose in fulfilling warranty obligations. Governmental agencies may have an interest in whether the enterprise meets certain governmental regulations that apply. The general public may be interested in the extent to which the reporting enterprose is socially responsible (for example, does not pollute the environment).