Managers demand financial accounting information to help them carry out

their responsibilities and because their compensation often depends on

financial statement numbers like earnings per share, return on equity, return on capital employed,
sales growth, and so on. Managers often use a competitor’s financial statements to benchmark
profit performance, cost structures, financial health, capabilities, and strategies.

The manager of the management of an enterprise has the primary responsibility for the
preparation and presentation of the financial statements of the enterprise. Management is also
interested in the information contained in the financial statements even though it has access to
additional management and financial information that helps it carry out its planning, decision-
making and control responsibilities. Management has the ability to determine the form and
content of such additional information in order to meet its own needs. The reporting of such
information, however, is beyond the scope of this framework. Nevertheless, published financial
statements are based on the information used by management about the financial position,
performance and changes in financial position of the enterprise.

The role of financial reporting ( see the file named pdf, c the bottom part)