Management and Organizational Studies 1023A/B Chapter Notes - Chapter 2: Share Capital, Free Cash Flow, Quick Ratio

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Christina Maco

Document Summary

Chapter 2 financial statements framework, presentation, and usage. Conceptual framework of accounting objectives and fundamentals that can lead to consistent standards and that. The conceptual framework of accounting is a (cid:498)coherent system of interrelated prescribes the nature, function, and limits of financial accounting statements. (cid:499) It is difficult, if not impossible to create a rule for every situation. Canadian accounting standards are therefore based mostly on general principles rather than specific rules. A conceptual framework also makes financial statements more relevant, objective, and easier to compare. It increases users" understanding of, and confidence in, financial reporting. Accounting standards can differ significantly, and do, from country to country. International accounting standards board (iasb) was formed to try to reduce these areas of difference and unify global standard setting. In canada, we currently have our own accounting standards. They were developed by the accounting standards board (acsb).