RSM219H1 Lecture Notes - Lecture 2: Cash Flow Statement, Financial Statement, Income Statement

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

Document Summary

In the financial statement, we rely on handbook to make sure that the users have the best info to make their decisions. It is important that if canadian public companies want to compete in the global market the had to make the move to ifrs. Financial statements of profit oriented enterprises normally includes: balance sheet. Income statement- states your performances: cash flow statement required cash transactions. Objective of a financial statement is to communicate information that is useful to its investors, creditors and other users in making their resourse allocation decisions and/or assessing management stewardship. Assessing management stewardship: checking if the employees are doing what they are actually assigned to do. Financial statements provide information about: a(cid:374) e(cid:374)tity"s e(cid:272)o(cid:374)o(cid:373)i(cid:272) (cid:396)esou(cid:396)(cid:272)es, o(cid:271)ligatio(cid:374)s a(cid:374)d e(cid:395)uity, cha(cid:374)ges i(cid:374) a(cid:374) e(cid:374)tity"s e(cid:272)o(cid:374)o(cid:373)i(cid:272) (cid:396)esou(cid:396)(cid:272)es, o(cid:271)ligatio(cid:374)s a(cid:374)d e(cid:395)uity, the economic performance of the entity. If there is no need for financial statements we are not going to have it.