ACCTG 231 Lecture Notes - Lecture 2: Financial Accounting Standards Board, Spotify, Capital Formation
14 Dec 2016
School
Department
Course
Professor
Document Summary
Module 1 review: risk (cid:448)aries o(cid:374) the perso(cid:374)"s o(cid:449)(cid:374) perspe(cid:272)ti(cid:448)e a(cid:374)d situatio(cid:374). Based o(cid:374) the pro(cid:271)a(cid:271)ility of a particular outcome. If you lie in accounting, you are making risky business decisions: accounting financial communication, internal within the company, decisions for the company. External outside the company, decisions for themselves: as economic events become accounting events, the accounting system measures and records the event. The data is then compiled into a reporting medium for external users, this takes place in the form of financial statements: service spotify. Manufacturing gm: financial accounting standards board establishes rules for how accounting theory will function. Securities and exchange commission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation: relevance is the info capable of making a difference in a decision. Predictive value the potential to forma n opinion or gain insight about future events. Confirmatory value feedback value may confirm or change previous conclusions about the financial info.
