ACCG350 Lecture Notes - Lecture 2: Capital Market, Financial Analysis, Financial Statement

• School: Macquarie University
• Department: Accounting and Corporate Governance
• Course: ACCG350

Document Summary

Create valuation: loan officer - assesses credit risk, liquidity, profitability, business risk, corporate manager - investment/acquisition, financing, auditor - accounting policies and consistency. Accg3050: accounting systems facilitate information quality, the role of accrual accounting, the need for accounting conventions and standards, manager"s accounting choices and strategies, auditing and the quality of financial information. Concluding comments: financial statements are a source of widely available data on publicly listed companies, accrual accounting attempts to accurately reflect expectations of economic performance but requires careful analysis. Strategy analysis: evaluation of the company"s competitive strategy analysis, and corporate strategy analysis, implications of these analysis for the future profitability of the company. Accepting a lower profit margin in return for a higher sales volume and market share: product/service differentiation - provides a product or service that is distinct in some important respect valued by the customer.