COMM-3016EL Chapter Notes - Chapter 4: Softhard, Current Liability, Ias 39
1 Mar 2018
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The income statement (aspe) or statement of comprehensive income (ifrs) is the report that measures the success of a company"s operations for a specific time-period. This statement will assist the users of the financial statements to predict the amount, timing, and uncertainty of future cash flows . The basic business model consists of getting cash, investing it in resources, and then using these resources to generate profits . In performing these 3 types of activities, companies are exposed to different levels of risk and are given different opportunities, with some industries being riskier than others . Risk/return trade-off the market demands a greater return when there is greater risk. Some industries have greater opportunities (ex. companies where there are emerging markets or technologies). All companies must make decisions about which opportunities to take and when! Within industries, different companies have different business models (for instance, macy"s vs. walmart)
