RSM219H1 Lecture Notes - Lecture 2: Financial Statement, European Cooperation In Science And Technology

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Elisa Zuliani

Document Summary

Accounting: accounting standards for private enterprise (aspe) section 1000 (financial statements and concepts, ifrs, not for profit org, pension plans. Notes are integral part for the users to justify the numbers. Financial statements are based on representation of the past and provide information. Transaction only counts when something has changed on paper. Objective of financial statements is to communicate info to users, creditors . Qualitative characteristics what they expect of us? (all fs should have these characteristics) allows user to make decisions. Understandability: communicate in the way that is understandable to general users. Relevance: 1) timely, 2) predictive value and feedback value. For example, uoft gets revenue from tuition, revenue should have tuition, not sale of land. Reliable: verifiability (can it be verified) able to prove this with a receipt or record, neutrality. Or had expense: pick expense and you don"t want to overstate your balance sheet.