ACC1100 Lecture Notes - Lecture 1: Going Concern, Legal Personality, Accrual
2 Aug 2018
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Document Summary
Week 1: introduction to accounting and the conceptual framework. An information system or process that identi es, records and communicates economic events of an entity to permit informed judgements and decisions by interested users of the information, Accounting is important as the information it provides about the performance of a business shapes business decisions. Poor accounting can produce information that is inaccurate or misleading, which can cause corporate collapse and nancial ruin. External users - any stakeholders who are information to make decisions about business interested in how the entity is performing operations. (e. g. Separate legal entity owned aspects partnership agreement to by shareholders, registered minimise con ict with asic (private/public) Going public means access to a lot more capital. Agency problem (managers may not be aligned with shareholders) Generally accepted accounting principles (gaap) developed to guide the practice of accounting. Accounting standards provide rules" for dealing with various accounting issues.
