MGT224H5 Lecture Notes - Lecture 1: Public Company, Ddb Worldwide, Contingent Liability
26 Jan 2015
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Public company stocks on stock exchange have to be audited (ifrs) private choice between ifrs and aspe. Company a big user is the bank management is inside the box (preparer) as well as outside the box as they have access to all information and it"s also affected by financial statements. Bank is a creditor, investors is another user, existing shareholders and potential shareholders. Canada revenue agency not important in this. Bank need to make a loan decision lend or maintain bank covenants means bank restrictions e. g. having current ratio of 1:1 they check fs before giving the loan. It separates gains from revenues and losses from expensive. Notes disclosure notes supplement and complement them, but they are not a substitute for that. Bs and is are the primary fs. if it meets the definition of any of the accounts, put it in the right account, not in the notes disclosure.
