ACTG 2010 Lecture Notes - Lecture 1: International Financial Reporting Standards, Legal Personality, Stormers
12 Nov 2016
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Document Summary
Information is necessary for decision making; better information, better decisions. Information is usually not a 100% complete or perfect. Information costs time and money to gather analyze and interpret. All sources of information are not equal; credible or relevant. Accounting is a system for producing information about an entity and communicating that information to people who want or need the information for making decisions. Accounting has economic consequences: impacts decisions, affects people"s wealth, provides more information for better decisions, information that is reliable and relevant to user needs. Whether or not to buy a business and how much to pay. Calculate the amount of tax to pay. Evaluate whether to lend to a prospective borrower, and terms. Evaluate whether or not to expand a business. Evaluate how well managers have managed a business. Assess how well a business has performed. Decide whether or not to make a major purchase.
