AR101 Lecture Notes - Lecture 3: Press Release, Faithful Representation, Financial Statement
31 Jan 2017
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Chapter 6 textbook: communicating and interpreting accounting information: Board of directors elected by the shareholders to represent their interests is responsible for maintaining the integrity of the company"s financial report. Unqualified audit opinion is the auditor"s declaration that the financial statements are fair presentations in all material respects in conformity with ifrs. Earning forecast are predictions of earnings for future accounting periods. Users institutional and price investors, creditors, and others: Institutional investors are managers of pension funds, mutual funds, endowment funds, and other funds that invest on behalf of others. Private investors include individuals which purchase shares in companies. Lenders include suppliers and financial institutions that lend money to companies. Press release is a written public news announcement normally distributed to major news services. Relevant information can influence a decision and it has predictive or confirmatory value. Faithful representation suggest that information provided in financial statements must reflect the substance of the underlying transactions.
