External stakeholders: customers, suppliers, government, lenders, local community
External stakeholders are groups outside a business who have an interest in how it performs. Each group wants different information from the company's accounts.
Real World
When Carillion collapsed in 2018, its suppliers were left owed over £1 billion — a stark illustration of why external stakeholders like suppliers scrutinise published accounts to assess credit risk before extending trade credit.
Exam Focus
For each external stakeholder, state the specific information they want and the decision it informs — vague answers about 'wanting to know performance' won't earn application marks.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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