Research On Stakeholders And Financial Report Development

The theory of stakeholders suggests that a corporation is a ' nexus of contract ' woven by stakeholders including shareholders, creditors, employers, employees, governments, suppliers, and customers. In the course of the development of the financial report, the accounting environment affects the benefit demands of various stakeholders, stimulates their demands for accounting information, and leads to the progress of the financial report. The success of a financial report is judged by whether it can provide effectively outside information users with appropriate information. Thus, it is of great importance to pay attention to and analyze the benefit and information demands of stakeholders. However, the current financial report, which is the result of the Industrial Revolution, was developed at the times of the industrial economy in the 19th century. It can no longer satisfy the demands of modern economic environments so that corresponding reforms are needed. This essay introduces the conception of stakeholders, and tries to study the financial report in combination with the theory of stakeholders. By taking the current financial report into account, it proposes the research framework of the financial report under stakeholders concerns, and discuss the influence of such a financial report on the formulation of accounting standards.