Who are the users of financial statement and why they need the financial statement?

If the company is public, investors who buys stocks use the financial statements. Investors rely on the financial statements to see where the company stands at a certain point in time, usually at the company's year end (this is the balance sheet). They also use them to see how the company performed over the year (the income statement and statement of cash flows). They use the statements in order to evaluate the company to see if the company wold make a sound investment. Public companies are also required to file certain forms with the government (10-K, etc) which also include the financial statements. Private companies also compile financial statements for their owners. Banks and other lending institutions also usually request audited financial statements when a company is apply for a loan or a line of credit. Anyone who is evaluating a company has to use the financial statements as well as the notes to the financials in order to see how the company has performed in the past and is currently performing.