Article Reading Key Points (1) AFM Supplementary BOOK READINGS ALL ARTICLES for MIDTERM NUMBER 1! - contains first 5 articles!

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Department
Accounting & Financial Management
Course
AFM 101
Professor
Donna Psutka
Semester
Fall

Description
Time for Accounting Standards Key Points: - 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 o Globalizing Canada Benefits: - Will reduce future costs of translating accounting financial information from Canadian to US GAAPS - Will save time because you won’t have to translate anymore - IFRS makes accounting information more clear and high quality Disadvantages: - It will be costly to switch to IFRS o Will need excessive education and training GM Bookkeeping Errors may Indicate Aggressive Accounting Cycle Aggressive Accounting: - 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 o the financial statements become unreliable Playing by the Rules - Accounting standards and conceptual framework govern the financial statements Earnings is just an estimate, uses the revenues and cost to take a guess at earnings True Profitability: Cash gen
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