ACC 201 Lecture Notes - Lecture 6: International Accounting Standards Board, International Financial Reporting Standards
Document Summary
The sec requirements for firms that trade in the us. Foreign companies can file us gaap or ifrs as promulgated by the iasb. Foreign firms that use different set of standards (not us gaap or ifrs) Must provide a reconciliation between the reported stockholders" equity and what stockholders" equity would be if the firm followed us gaap. One way to determine the value of a company is via p/e ratio. P/e ratio = total market capitalization (# of shares outstanding x share price) The higher the ratio, the more optimistic investors are about investing.
