BUS 251 Lecture Notes - Lecture 2: Cash Flow Statement, Financial Statement, Current Liability

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Anne Mac Donald

Document Summary

Bus: chapter 2 analyzing transactions and their effects on financial. A(cid:374)(cid:374)ual repo(cid:396)t"s i(cid:374)(cid:272)lude: management discussion and analysis (md&a) Conflicts: timely and accurate, relevant and summarized, understandable and summarized, representationally faithful and biased, understandable and detailed. Definition: the type and quantity of i(cid:374)fo(cid:396)(cid:373)atio(cid:374) i(cid:374)(cid:272)luded i(cid:374) fi(cid:374)a(cid:374)(cid:272)ial state(cid:373)e(cid:374)ts is li(cid:373)ited (cid:271)(cid:455) . Ifrs (international financing reporting standards) mandatory for canadian public companies: aspe (accounting standards for private enterprises) can be used by private companies. [private companies can also use the ifrs of financial reporting] Cost constraint: the benefit of reporting (additional) information must be exceed the costs of capturing and reporting. Materiality: information that does not i(cid:373)pa(cid:272)t a use(cid:396)"s de(cid:272)isio(cid:374) does (cid:374)ot (cid:374)eed to (cid:271)e captured and reported: e(cid:454)a(cid:373)ple: a (cid:449)hite(cid:271)oa(cid:396)d e(cid:396)ase(cid:396) (cid:271)ought (cid:271)(cid:455) fu = (cid:449)ould (cid:374)ot (cid:272)ha(cid:374)ge so(cid:373)eo(cid:374)e"s (cid:448)ie(cid:449) o(cid:374) the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s spe(cid:374)di(cid:374)g . Amounts within the balance sheet can be compared to make judgements about the situation.