AFM101 Study Guide - Midterm Guide: Financial Statement, Bookkeeping, Matching Principle

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Donna Psutka

Document Summary

Over 100 countries in the world are already using this ifrs. Canada is switching to ifrs standards, not using canadian gaaps anymore. Switching to one accounting global language will secure canada in recognition from other countries: globalizing canada. Will reduce future costs of translating accounting financial information from canadian to us. Will save time because you won"t have to translate anymore. Ifrs makes accounting information more clear and high quality. It will be costly to switch to ifrs: will need excessive education and training. Gm bookkeeping errors may indicate aggressive accounting cycle. When revenues and assets are recorded early and high. When liabilities and expenses are recorded low and later. When you increase earnings, error occurs much more. Gm had problems with rebates, and credits, can"t record them until after the purchases. Premature record of payment, increased income losses are understated the financial statements become unreliable. Accounting standards and conceptual framework govern the financial statements.