Lecture One – January 7 th
“Lululemon does downward dog”
- Can’t keep up with expansions and growth rate
- Many discounts.
- Other companies selling athletic gear may swoop in and take their clients.
- If anything sounds unfamiliar, review the first four chapters of the textbook.
- Katey is panda’s favourite <3
Objectives of financial reporting: providing information for decision making
- Who are the decision makers?
- What kind of decisions are they making?
- When do they want to make decisions?
- What do we need to know as a decision maker?
Internal and external users of accounting information
- Ex: Banks, donors, creditors, financial analysts, government agencies, trade organisations
customers/users, suppliers, current and potential owners
- Int: management, employees, HR
Decisions made with financial information
- Investing, borrowing, extending credit, donating, close a division, start new business, cancel
service, adding new products or services, build new plants, loans, sell shares or bonds, applying
for a new job
- “GAAP” Generally Accepted Accounting Principles
o Principles, conventions, practices and procedures/rules
o Based on assumptions
o Included qualitative characteristics
- Rules changed January 1 , 2011
o International Financial Reporting Standards (IFRS)
o Applicable for all publicly traded corporations
o Introduction of GAAP for private companies
- Changes also coming for not-for-profit organisations
- We focus on counting and measurement.
o Representational faithfulness
- Comparability and consistency
- Materiality Assumptions of financial statements (also known as the accounting conceptual framework):
- Economic entity
- Time period
- Cost principle
- Going concern
- Monetary unit
- Full disclosure
- Non-arm’s length
Assets = Liabilities + Owners Equity
Economic resources = creditors’ claims to assets + owners claims to assets
- Identify economic event
- Prepare journal entry
- Post entry to general ledger
- Prep and post adjusting entries
- Prep trial balance
- Prep financial statements
- Prep and post closing entries
The pretty lady with the short hair who’s really thin and works here? Her husband was at my church
yesterday :D And he recognised me from market and I was singing and he said I should set up a thing in
the booth and sing while I work… I was like “Thanks… but I don’t work there anymore…” and then we
were talking about diets and stuff because apparently he has a SUPER strict diet, but over Christmas he
just goes “TO HELL WITH IT” and binges. He gained 20 pounds. In two weeks xD But he doesn’t eat
gluten normally or sugar and he doesn’t drink… But he was eating cookies and drinking beer for two
Apparently Sam wants to give up Zap Attack… because it’s not actually her income, it’s more of a