ACCT1501 Chapter Notes - Chapter 9: Sustainability Reporting, Financial Statement, Accrual

• School: UNSW, UNSW Sydney
• Department: Accounting
• Course: ACCT1501
• Professor: Peter Ross

Document Summary

This article is a topic within the subject accounting 1a. Trotman, k. & gibbins, m. , 2009 financial accounting: an integrated approach, 4th edition, melbourne: [1] generally accepted accounting principles (gaap) are rules, standards and usual practices of accountancy in the preparation of financial statements. The australian accounting standards board (aasb) has created a aasb framework to establish the accounting standards in australia for general purpose financial statements. The assumptions underlying financial reporting are: accrual - transactions are recognised when they occur, not when cash is received or paid, going concern - the company expects to continue operations in the foreseeable future. Qualitative characteristics of financial reports: understandability, ability of users to understand the financial reports, relevance, ability to assist users to make, confirm or correct predictions about past, present or future events. There is a trade-off between relevance & reliability. Relevance is enhanced by future predictions whilst reliability comes from a historical focus.