22522 Study Guide - Final Guide: Book Value, Datagram Transport Layer Security, Finance Lease
Document Summary
What are the functions of accounting: stewardship, agents reporting back to owners on what transpired during the period, decision making, using accounting information to make decisions, contracting, connecting profits or accounting numbers to the completion of contracts, agency costs of debt. 2 options to deal with: do nothing, management best placed to decide accounting numbers, regulation, limit management options for accounting. Income: income is increases in economic benefits during an accounting period in the forms of inflows or the enhancement of assets or decreases in liabilities that result in the increase, revenue, revenue arises in the course of the ordinary activities of an entity, expenses, expenses are decreases in the economic benefits during an accounting period in the forms of outflows or the depletion of assets or the incurrences of liabilities. Most occurs prior to annual report: market announcements, biannual reports, economic condiciontons, should be note that profit is the final figure that results after all accounting procedures are adopted.
