BU387 Lecture Notes - Lecture 1: Revenue Recognition, Income Statement, Bitch Better Have My Money
Document Summary
Management accounting internal for users inside the company don"t need to follow rules. Financial accounting - external users a lot of people dependent on this and must follow rules ifrs and aspe. We want to provide information for the users of the financial statements. We want to know if we will pay the person back can you make the payments etc they need information. Use projections if you look at multiple statements you can determine trend. Information is relevant follow along and made projections. Representation faithfulness statements are complete free from error and or bias. Complete not missing any information and all information that should be there is there haven"t failed to record expenses. If you would have known the error was there i would have made a different decision if would make a difference in the decision i am making. You can enhance the statements but it is false representation.