[AFM 291] - Final Exam Guide - Comprehensive Notes for the exam (55 pages long!)

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM291
• Professor: Robert Ducharme

Document Summary

Financial accounting process by which enterprises provide info to external parties. Tax accounting reporting taxable amounts to government revenue authorities. Generally accepted accounting principles (gaap) broad principles and conventions of general application and rules and procedures that determine accepted accounting practices. Financial accounting is an economic good, therefore, subject to laws of supply and demand. Not just caused by the international accounting standards board (iasb) or accounting standards. Helps us understand complexities in production and consumption (use) of accounting information. Information evidence that can potentially affe(cid:272)t a(cid:374) i(cid:374)di(cid:448)idual"s de(cid:272)isio(cid:374) Potentially = does not have to alter a decision. Some things can be info to one person but not to other (does it potentially affect decisions) Decision-making needs of external parties create the demand for financial reporting. To consider if they should lend, invest, sell product, or work for an enterprise. Those who have superior information, such as insiders, supply the information.