Class Notes (997,791)
CA (575,298)
UTSC (34,214)
Management (757)
MGAB01H3 (93)
Lecture 2

MGAB01H3 Lecture Notes - Ontario Securities Commission, Historical Cost, Financial Statement
24HR
Premium

2 Pages
51 Views
Fall 2018

Department
Management
Course Code
MGAB01H3
Professor
H Levy-Shalev
Lecture
2

This preview shows half of the first page. Sign up to view the full 2 pages of the document.
MGAB01 Class2
1. Some rules for accounting:
a) Company choose for publish: IFPS
b) Private own company can choose: ASPE
c) SEC (Securities and exchange commission) used in US
d) OSC (Ontario Securities Commission) used in Canada
e) GAAP (Generally Accepted Accounting Principles)
2. Recording transactions – the conceptual framework
External user and decision maker needs the external financial reporting
Primary Qualities: Timely, Predictive and has feedback values. It must be
accurate,
Unbiased and verifiable
Secondary Qualities: Across Businesses, over time consistency,
understandability
What should be include: Asset, Liability, Shareholder’s equity, Revenue,
Expense,
Gain, Loss
Assumptions: Activities of the business are separate from activities of owners;
(i.e Apple, Jobs is dead but apple still exist and operate)
Continuity: Assumed to continue operate into foreseeable future; ( it would not
suddenly close)
Use same money unit to record
Historical cost: since market price always change, unless we sell it, we don’t
know its price in market. So, when we record we use the initial recording.
Some definition of elements of statement:
Which are controlled now and will be benefit in the future.
Liabilities: debt/obligation caused by past and will be paid
3. The statement of financial position
a) Assets: Which are controlled now and will be benefit in the future.
i. Current (short-term) include: cash, inventory etc
ii. non-current(long-term) include: land, long-term investment etc
b) Liabilities: debt/obligation caused by past and will be paid
i. Current (short – term)
ii. non-current (long – term)
c) Shareholder’s equity: money for company from both owner and daily
operation
i. Contributed capital
ii. earned capital (retained earning)
d) Translation analysis: (Lots of sample on PPT)
i. Determine which accounts change
ii. Determine the direction of effect

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
MGAB01 Class2 1. Some rules for accounting: a) Company choose for publish: IFPS b) Private own company can choose:ASPE c) SEC (Securities and exchange commission) used in US d) OSC (Ontario Securities Commission) used in Canada e) GAAP (GenerallyAcceptedAccounting Principles) 2. Recording transactions the conceptual framework External user and decision maker needs the external financial reporting Primary Qualities: Timely, Predictive and has feedback values. It must be accurate, Unbiased and verifiable Secondary Qualities: Across Businesses, over time consistency, understandability What should be include: Asset, Liability, Shareholders equity, Revenue, Expense, Gain, Loss Assumptions:Activities of the business are separate from activities of owners; (i.eApple, Jobs is dead but apple still exist and operate) Continuity:Assumed to continue operate into foreseeable future; ( it would not suddenly close) Use same money unit to record Historical cost: since market price always change, unless we sell it, we dont know its price in market. So, when we record we use the initial recording. Some definition of elements of statement: Which are controlled now and will be benefit in the future. Liabilities: debt/obligation caused by past and will be paid 3. The statement of financial position a) Assets: Which are controlled now and will be benefit in the future. i. Current (short-term) include: cash, inventory etc ii. non-current(long-term) include: land, long-term investment etc b) Liabilities: debt/obligation caused by past and will be paid i. Current (short term) ii. non-current (long term) c) Shareholders equity: money for company from both owner and daily operation i. Contributed capital ii. earned capital (retained earning) d) Translation analysis: (Lots of sample on PP
More Less
Unlock Document

Only half of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

You've reached the limit of 4 previews this month

Create an account for unlimited previews.

Already have an account?

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit