COMMERCE 1BA3 Lecture Notes - International Financial Reporting Standards, Public Company, Cash Flow Statement

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1BA3
• Professor: Aadil Merali Juma

Document Summary

Stakeholders what we call the customers. Exhibit 1. 1 the accounting system and decision makers: 2 groups; external and internal, external = others; uses financial accounting. Creditors lend money to a company for a specific length of time and gain by charging interest on the money loaned. Investors take a risk, in it for good or bad, receive dividends but if company has a bad year they receive less (or nothing: creditors have a specific payout, they have a contract, company must make interest payments. Primary means of communicating financial information to parties outside the business organization, namely investors. Summarize the financial activities of the business. Available to the public; does not include projections for the future. Most companies prepare financial statements at: the end of the month, the end of the quarter (quarterly reports) Commerce 2aa3: the end of the year (annual reports)