Management and Organizational Studies 3360A/B Study Guide - Quiz Guide: International Accounting Standards Board, Public Company Accounting Oversight Board, Ontario Securities Commission

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3360A/B
• Professor: Robert

Document Summary

Identifies, measures, and communicates financial information to various users (decision makers) In order to compare: economic entities. Accounting has two classifications: financial accounting, managerial accounting. Accounting theory and practice have evolved and will continue to evolve to meet changing demands and influences (theory and practice have gap) Financial accounting results in preparation of financial reports about business activities. Financial reporting is used by both internal and external users. External users include such decision makers as investors, creditors, unions, and government agencies. Managerial accounting is used by management (internal users only) Other forms of financial reporting: (not governed by gaap) Financial reporting aids users in the allocation of scarce resources (capital) E. g. bankers: whether to call you a loan, increase/decrease your interest rate. The accounting profession has the responsibility of measuring a company"s performance accurately, fairly and on a timely basis. These measurements enable investors and creditors to compare the income and assets employed by companies.