COMM 310 Midterm: Quizz Review.docx

• School: Queen's University
• Department: Commerce
• Course: COMM 310
• Professor: David Mc Conomy

Document Summary

International accounting standards board (iasb): quasi-governmental agency in. International standards board (acsb) of canadian institute chartered. Accountants (cica) 7: uncertainty and information asymmetries. Information: evidence that can potentially affect an individual"s decisions: decision making needs of external parties create demand for financial reporting. Information asymmetry: a condition in which some people have more information than others: the supply and demand for financial reporting is due to the presence of information. Moral hazard causes outsiders to be suspicious of information supplied by management regarding its actions, creating a demand for information that is reliable and verifiable: economic consequences of accounting choice and earnings. Increase investor estimates o: appearance of low risk, ability to meet contractual obligations, meet regulatory requirements, stronger bargaining, higher compensation profit- sharing, higher compensation stock- based. Down bias: reduce likelihood of additional taxes. Increase government subsidies o: big bath in one year (more expenses and get it over with)