ACTG 2010 Lecture Notes - Lecture 2: Internal Audit, Gross Margin, Historical Cost

• School: York University
• Department: Accounting
• Course: ACTG 2010
• Professor: Frank Nanfara

Document Summary

Financial statements: compilation of accounting information by an entity (public corporations, most common compilation is in the form of an annual report issued by a public corporation for its shareholders. Done for powerful users bankers, wealthy shareholders. Cost money and time cost benefit trade off: focus of course is on public companies even though most companies in canada are not public, the f/s of canadian public companies must comply with ifrs (international. Need to be signed by the accounting firm. 1: most companies have an internal audit team look at things for accuracy. Save money prevent errors from happening. Foundation for ifrs conceptual framework: characteristics and assumptions also apply or are similar to most other forms of financial reporting including aspe. Ifrs identifies two levels of qualitative characteristics of useful financial information: fundamental qualitative characteristics. Include relevance and faithful representation: enhancing qualitative characteristics. Information is relevant if it influences stakeholder decisions and helps users make predictions: faithful representation.