AFM391 Chapter Notes - Chapter 23: Financial Statement, Income Statement, Basis Of Accounting

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM391
• Professor: Robert Ducharme

Document Summary

Chapter 23 - other measurement and disclosure issues. The full disclosure principle suggests that information relevant to decision-making should be included in the financial statements. Other documents that provide information include annual information forms, management information circulars, md&as, material change reports, news releases, and prospectuses. Not all disclosure is good disclosure; too much disclosure can lead to information overload: misleading disclosure, selective disclosure, untimely disclosure, and insider trading are violations of securities law. The full disclosure principle states to report any financial facts that are significant enough to influence the judgement of an informed reader: accounting standards for private enterprises have fewer disclosure requirements than. Private enterprises have less complex business models and are closely held, giving stakeholder greater access to information that may not be presented. Notes are means of amplifying or explaining items on the body of financial statements. Ifrs reduces accounting policy choices to promote comparability.