BUSI 2150U Study Guide - Midterm Guide: Current Liability, Counterfeit Money, Canada Revenue Agency
Document Summary
Accounting is a system for gathering data about an entity"s economic activity, processing and organizing the data to produce useful information about the entity, and communication the information to people who use it to make decisions. The diversity of the accounting environment makes it impossible for a single accounting report to be appropriate for all situations: accounting reports must be tailored to suit the circumstances of an entity"s accounting environment. Accounting standards are principles, conventions, procedures and rules that define acceptable accounting practices and guide the preparation of financial statements in certain situation. In canada: international financial reporting standards (ifrs) must be used by pubic companies whereas private companies can use ifrs or a set of standards called, accounting standards for private enterprises (aspe) Most canadian companies are private and are not obliged to follow either standards. The accounting choices managers make can significantly affect the amounts reported in the financial standards.
