COMM-1106EL Chapter Notes - Chapter 2: Profit Margin, Asset, Investment

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-1106EL
• Professor: Leonard Valorie

Document Summary

Accounting standards have been developed to provide companies with a broad set of rules to be followed when preparing their financial statements. These standards enhance the usefulness of financial information, ensure that users can understand, and enables users to evaluate and compare the statements with those of other companies. All canadian public (those whose shares trade on canadian public markets) companies are required to prepare their financial statements using the international financial reporting standards (ifrs) These standards are being used by over 100 countries in the world, making it easy for all the various companies worldwide to understand the financial statements. Private companies typically follow accounting standards for private enterprises (aspe), but have the option of using ifrs if they wish. Aspe represents a set of simplified standards that canadian standard setters have established to reduce the financial reporting burden for private companies.