MGAC01H3 Study Guide - Accounting, Financial Statement, Mci Inc.

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Published on 27 Sep 2011
School
UTSC
Department
Financial Accounting
Course
MGAC01H3
Professor
MGTC07 Intermediate Accounting I S. Daga
Topic: THE ACCOUNTING ENVIRONMENT & CONCEPTUAL FRAMEWORK
Chapters: 1 & 2
Topic’s Learning Objectives:
1. Be familiar with the accounting environment and who the stakeholders are.
2. Understand GAAP and the conceptual framework.
3. Know why Canada moved to two sets of accounting principles (IFRS and ASPE).
Class Outline:
A. What is accounting?
B. The Objectives of Financial Statements:
C. The Nature of the Environment in which Accounting Operates:
D. Why are ethics a crucial aspect of accounting?
E. Generally Accepted Accounting Principles (GAAP):
-see attached illustration as a reference tool
F. Who has the authority to set standards and how are they enforced?
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Document Summary

Be familiar with the accounting environment and who the stakeholders are: understand gaap and the conceptual framework, know why canada moved to two sets of accounting principles (ifrs and aspe). Class outline: what is accounting, the objectives of financial statements, the nature of the environment in which accounting operates, why are ethics a crucial aspect of accounting, generally accepted accounting principles (gaap): Effective on january 1, 2011, canada has a two-tiered system for determining gaap for private versus public companies. Private companies will follow private entity gaap, as prepared by the. Acsb, and public companies will have to follow ifrs. What are the pros and cons of having 2 sets of gaap: the stakeholders and their interest in accounting, government"s role in standard setting: Enron and worldcom are two companies that were accused of misstating their financial statements. The auditors for each company signed audit reports in which they stated that the financial statements of each company were fairly presented.