ADMN 4300H Lecture Notes - Lecture 2: International Financial Reporting Standards, Public Company, Accounting Liquidity

• School: Trent University
• Department: Business Administration
• Course: ADMN 4300H
• Professor: Jie Zhang

Document Summary

Statement of comprehensive income: net working capital. Statement of financial position (sfp: an accountant"s snapshot of the firm"s accounting position as at a particular date, the accounting definition: assets = liabilities + shareholders" equity. Canadian composite corporation statement of financial position. Statement of financial position analysis: when analyzing a sfp, the financial manager should be aware of three concerns: Liquidity: debt versus equity, value versus cost. Liquid assets frequently have lower rates of return than long-term assets. Debt versus equity: generally, when a firm borrows it gives the bondholders first claim on the firm"s cash flow. Shareholders" equity is the residual difference between assets and liabilities. In 2011, publicly traded firms in canada adopted international financial reporting standards (ifrs: the accounting value of a firm"s assets is frequently referred to as the carrying value or book value, market value is a completely different concept. It is the price at which willing buyers and sellers trade the assets.