RSM219H1 Chapter Notes - Chapter 1: International Accounting Standards Board, Standard Accounting Practice, Legal Personality

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

Chapter 1: the purpose and use of financial statements. Accounting: is the information system that identifies and records the economic events of an organization, and then communicates them to a wide variety of interested users. The world"s economic system depends on highly transparent, reliable and accurate financial reporting, which is why accounting is called the language of business . Users of accounting is broadly divided into 2 groups: internal and external users. Internal users of accounting information plan, organize and run companies They work for the companies which includes finance director, marketing managers, human resource personals production supervisors, and production supervisors and company officers. Internal users needs accounting information on timely basis to answer many financial related question which is crucial in order to run the company. Accounting provide a variety of internal reports such as financial comparison of operating alternatives, projections of the profit from the new sale campaigns, analyses of sales costs, and forecast a cash need.