COMM 320 Final: Financial Accounting Sauder B+MM Final Study Guide
Document Summary
Chapter 2: qualitative characteristics of financial information p. 52-55. Canadian public companies (shares fade on canadian public stock exchange): International financial reporting standards (ifrs: developed to minimize the differences in nancial reporting across countries. Private companies generally use accounting standards for private. Enterprises (aspe), can use ifrs if they want: objectives of both: produce nancial reporting that is useful to nancial statement users. Useful nancial information must be relevant and representationally faithful: relevant: predictive & con rmatory value, materiality, faithful representation: complete, neutral, free from error, 4 characteristics that increase usefulness: comparability, veri ability, timeliness, understandability. Cost constraint is applied to all nancial information because capturing nancial info is costly: bene ts of capturing info must exceed the costs of doing so. Ch. 4: revenue recognition criteria for sale of goods & services, p. 173-184. Revenue = in ows of economic bene ts from company"s operating activities.
