Financial statements are important information to all the users of accounting data like: association, debtors, creditors, operatives, power associations, commercial analysts etc Financial statements are the outline of data identifying with benefit, and assets claimed by the firm. They give the data which could be contrasted with other different firms. Employees can utilize financial statements to interest for augmentation in pay and different profits. Investors and other monetary organizations can utilize financial statements to make the landing decisions too. Government bases on financial statements of the organizations for the estimation of expense income from the organizations. Financial statements could be utilized as the premise for administration choice making reason like arranging, advancement, innovative work choices and so on. Existing speculators can utilize financial statements to survey how productively the firm is utilizing their stores. Potential financial specialists can acquire data with the assistance of financial statements which might be valuable to take speculation choices. Financial statements uncover the historical backdrop of the firm. It could be utilized to survey the company's liquidity and solvency position. Financial statements are proposed to be justifiable by bookworms who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently ". The users of financial statements can be outside or inside the business. They use financial statements for a substantial mixed bag of business purposes and their capability to comprehend and break down financial statements helps them to succeed in the business world. The interior users of financial statements are people who have direct bearing with the business. In this group are included managers, supervisors, and employees. The supervisors and managers require the financial reports crucial to settle on business choices.