In this essay I will explain and identify the external users of accounting information and provide details on the main characteristics and how these characteristics and the conceptual framework develop the benefits of financial statements for external users. Financial Accounting includes information distributed to external users who are not part of the company, such as shareholders, creditors, customers and suppliers, although the information also affects the company's officers and directors. (Yahoo, 2007) External users have an interest in companies' final accounts. They are individuals or groups external to the company. (Cox, Fordon, 2008) They are also interested in a company's ability to pay dividends. They can estimate future cash flows using past cash flow. The main external users are made up of shareholders, creditors/suppliers, Public Administration, customers and financiers. (Elliot B and Elliot J, 2011, p.16) Shareholders are interested in dividends and profits. When they invest their money in the business, they are really interested in how the company works and how well it is doing. They are the owners of the business and need to get information from those who run the business on their behalf. They don't have access to the same amount of detailed information as managers. Financial reports provided to shareholders are also used by other users such as lenders and trade creditors. These reports are considered general reports. (Elliot B and Elliot J, 2011, p.4) Creditors are interested in profits and net current assets. Anyone owed money by the company is a creditor. They will look at the reliability of the company they are supplying to and see if...... middle of paper ......023619AAR12UR>[Accessed 2 November 2011]Tutor, 2011 Characteristics of Accounting Information [Online]. Available from: [Accessed 2 November 2011]Tutor, 2011 Accounting Concepts and Conventions [Online]. Available from: [Accessed 5 November 2011]Tutor, 2011 Key characteristics of accounting information [Online]. Available from: [Accessed November 6, 2011]Journal (Electronic)Morina D. David W. (2010) Financial Reporting for Private Companies: The Canadian Experience [Online] Available from:JournalAccountancymagazaine.com (2002) Accountancy, p.142