AFA 100 Chapter 5: WEEK 5

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26 Oct 2016
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Managers (management) use accounting information to manage the business, to fulfill a management function. Directors (governance role) it means that the accounting information is used to oversee the business. Directors use it to evaluate whether the ceo, cfo, and others have made wise decision about the assets and sales. Creditors (contracting role) use it as loan covenants which help to ensure the company will be able to repay the loans owed. Investors (valuation) uses accounting information involving future revenues, expense, and net income to assess share price. Csa (canadian securities administrators) monitors information in the financial statements to ensure that it presents fair results and no improper or fraudulent practices. This is to help investors and promotes efficient capital market. Cra (canada revenue agency) uses income statement because it provides a starting point for determining the amount of taxes that should be paid. Key organizations that play an important role in developing financial reporting standards: canadian accounting standards board (acsb)

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