BFN 110 Lecture Notes - Lecture 20: Tunxis Community College, Deferral, Balance Sheet
6 Jan 2021
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Document Summary
Income statement records past events, which are irrelevant for valuations purposes. Accountants focus on income while financial managers/analysts are interest in value. Accountants have some flexibility in reporting transactions and resultant income. Is a snapshot picture that indicates the firm"s: Obligations (financing as liabilities or equity [ownership interest] Measure of its value at a point in time (cost basis compared to. Classifications on the balance sheet: various ifrs valuation methods. Most countries like canada have accepted ifrs. Public companies report under ifrs which allows comparison to other companies worldwide. Most financial topics will be affected by ifrs applications especially: Asset accounts are listed in order of liquidity: inventory valued at cost. One number related to a firm"s value on the balance sheet is net worth or book value, which is defined as; Net worth = assets liabilities preferred shares. It represents common shareholders" original investment plus all earnings reinvested in the firm so far.
