BU127 Lecture Notes - Lecture 3: Faithful Representation, Repeated Measures Design, Financial Statement
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BU127 Full Course Notes
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Document Summary
Chapter 2: the statement of financial position (balance sheet) Conceptual framework of the statement of financial position. Elements to be measured and reported: assets, liabilities, shareholders" equity, investments by owners, distribution to owners. Definitions featured in chapter 1 notes o revenues, expenses, gains and losses. Revenues and expenses: from day-to-day operations of a firm. Gains and losses: from one-time transactions of a firm o comprehensive income. Classified : sections and subsections for various elements of the balance sheet. Current vs non-current assets/liabilities: current: expected to be converted into cash (sell or pay) in one year assume that inventory is a current asset, non-current: not expected to be converted into cash in one year environmental. Ifrs require canadian public accountable enterprises to report their best estimate of probable liabilities, including environmental liabilities. Essentially must keep track of environmental damage (externalities) Nature of business transactions / duality of effects.
