ACCT 2221 Lecture Notes - Lecture 1: International Financial Reporting Standards, Income Statement, Share Capital
22 Sep 2016
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Accounting: identifies and records economic events and communicates it to interested users. Income tax paid by owner: florist, small coffee shop, hobby stores. Glorified proprietorship : law firm, restaurant, hobby stores. May be public or private: public: shares are publicy traded, private: shares not available to general public. Publicly traded corp: uses ifrs (international financial reporting standards) Private corp: ifrs or aspe (accounting standards for private enterprise) Obtaining/repaying funds: borrowing money or repaying loans, selling or repurchasing shares. Purchase of sale of investments needed to operate the company. Reports revenues + expenses for a specific period of time: revenues: arise from sales of products or services. Results of inflow of assets: expenses: costs of assets consumed or services used to generate revenutes. Profit (loss: statement of changes in equity. Reports change in each component of shareholders equity during period of time: share capital: amount contributed by shareholders.
