RSM100Y1 Lecture Notes - Lecture 22: International Accounting Standards Board, International Financial Reporting Standards, Chartered Professional Accountant
Document Summary
Assets or services should be recorded at their initial cost. Revenue should be recorded when it has been earned. Expenses should be matched with revenue. ie: recognized in the same time period. Causes of differences between net income and cash flow. Non- cash items related to accrual basis of accounting. Sales made where cash payments have not been received. Payments made for prepaid expenses that have not been incurred. Taxed less, make income statements more attractive to investors. A public accountant provides accounting services to other organizations. Three major accounting designations, ca, cga, and cma, have been merged into one designation, the cpa (chartered professional accountant) Gaap: principles that outline the conventions, rules and procedures for deciding on the acceptable accounting practices at a particular time. Accounting standards board(acsb): organization that interprets and modifies gaap in canada for private and not for profit organizations. International financial reporting standards(ifrs): standards and interpretations adopted by the iasb.
