AFM101 Lecture Notes - Lecture 1: International Financial Reporting Standards, Cash Flow Statement, Financial Statement

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Thomas Manning

Document Summary

What it will be worth in the future. What others are willing to pay for it. Accounting information system: financial accounting system (preparation of four basic financial statements) afm 101. External decision makers (investors, creditors, suppliers, customers, etc: managerial accounting system (preparation of plans, forecasts, and reports) afm 102. Internal decision makers (managers throughout the organization) Four basic financial statements: statement of financial position (balance sheet) Assets = liabilities + owners" or shareholders" equity: statement of comprehensive income (earnings statement) Revenue expenses = net income: statement of changes in equity. Retained earnings - cumulative sum of undistributed net income. Every country did financial information their own way, like regional accents. One uniform style of communication and disclosing. Resource controlled by the entity as as result of past events and from which future economic benefits are expected to flow to the entity. A resource can meet the definition of an asset and still not be reported on the entity"s balance sheet.