Management and Organizational Studies 3370A/B Lecture Notes - Financial Statement, Current Liability, Historical Cost
Document Summary
Financial statements, presentations and framework: the need for shareholders to access information, the conceptual framework- is to guide us. There are more than 1 way to value something: a lot of new ways to do things. Users are used to identify the usefulness to the investors, or creditors. People want different things, but we cant compare 20 different financial statements. Investors find useful: because im going to get money back, what i want to know is to access future cash flow, the timeflow(prefer earlier cash) and attain the risk associated with the company, the return of the safe company. The information is to be enhanced for the decision making of the investors: relevance- the information provided should have confirmatory, predicable value. Relevant to the cashflow as up to date as possible. Representational faithfulness- reflect the economic reliability of the info, being neutral is very hard.