ACCO 310 Chapter Notes - Chapter 1: Efficient-Market Hypothesis, Equal Voice, Audit Risk
Document Summary
Financial accounting/reporting is the process of preparing financial reports (statements) for external and internal users. The primary objective of financial reporting is to aid current and potential stakeholders in their decision making, particularly with respect to lending money or investing in the company. Financial reporting is mainly (but not exclusively) geared towards external users while managerial accounting is geared towards internal users. In canada, public companies must follow international financial reporting standards (ifrs). Some canadian companies will follow u. s. gaap but this will be quite rare. Canadian companies trading on u. s exchanges may apply u. s gaap or ifrs (ifrs is acceptable for foreign companies listed on u. s, stock exchanges). In canada, private companies may apply accounting standards for private enterprises (aspe) or ifrs. Companies following aspe in canada (private companies only) must provide the following financial reports: statement of financial position (balance sheet) Income statement: statement of cash flows (cash flow statement, statement of retained earnings.
