COMM321 Study Guide - Midterm Guide: Petty Cash, Repurchase Agreement, Sinking Fund
12 May 2013
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Info for decision makers emphasis on resource allocation decisions (invest in x company) and management stewardship (lenders/investors) need to assess managers since they"re managing co. but they"re not ones w/ funds at risk. Management bias: present biased information that presents company as the best they can (aggressive financial reporting). Not neutral: may be trying to over/under emphasize positives/negatives. Compensation tied to fin. performance; common stock price. Meeting financial analysts expectations avoid negative earnings surprises: Meeting contractual financial ratios banks (loans); govts (regulators) Reporting standards) publicly accountable entities (shares/debt traded publicly) & govt. business enterprises. Iasb (international accounting standards board; london based, int"l members) Pe gapp (generlly accepted accounting principles) private co. have option of ifrs or pe gaap. Cica (canadian institute of chartered accountants) mandated by cbca (canada business corporation. Act) f/s must be prepared in accordance w/ gaap as prescribed by the cica handbook. Acsb (canadian accounting standards board); private co. , pension plans, not-for-profit entities.
