BU127 Lecture Notes - Lecture 1: International Financial Reporting Standards, Financial Statement, Double Taxation
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BU127 Full Course Notes
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Document Summary
Business owners (called investors or shareholders) look for two sources of possible gain: Sell ownership interest in the future for more than they paid. Receive a portion of the company"s earnings in cash (dividends) Creditors lend money to a company for a specific length of time and gain by charging interest on the money loaned. Manufacturers either make the parts needed to produce its products or buy the parts from suppliers. Financial accounting reports (periodic statements/disclosures) external decision. Managerial accounting reports (detailed plans/continuous performance) internal. An organized format used by companies to accumulate the dollar effects of transactions. Financial statements are often referred to as having been prepared using gaap (generally accepted accounting principles) Aspe: accounting standards for private enterprises (acsb) Companies that trade their securities (debt or equity) in a public market are required to use ifrs. Those companies that do not meet above criteria have an option of using either ifrs or aspe (mostly aspe, it"s less complex)
