COMMERCE 2AB3 Lecture Notes - Lecture 1: Financial Statement, Management Accounting, Income Statement
11 Jan 2018
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Document Summary
To provide stakeholders with useful information about a business enterprise in order to help them make rational economic decisions. Stakeholders - anyone with interest in a business. External users - outside of the company (financial accounting) e. g shareholders, investors, creditors, income tax authorities. Internal users - inside of the company (managerial accounting). Managers at all levels need information to successfully run the company and perform their basic functions such as planning, implementing plan and directing operations, controlling, and performance evaluation. Financial accounting is only involved with monetary values. Managerial accounting involves all other values as well. Financial statements - are used to convey an aspect of the business in an organized way. Gaap/ifrs - rules and regulations, standards, concepts that must be followed in order to prepare financial statements. These rules are necessary to standardize and allow information to be compared fairly. These rules guarantee a minimum quality of information.
