BUS 251 Chapter Notes - Chapter 2: International Accounting Standards Board, International Financial Reporting Standards, Accounting Equation

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Accouning standards: provides companies with a broad set of rules to be followed when preparing their inancial statements. Focus on the needs of shareholders (current & potenial) and creditors. Public companies use internaional financial reporing standards (ifrs). Used in more than 100 countries and help companies that operate internaionally and are cross listed. Private companies generally follow accouning standards for private enterprises (aspe), but have the opion of using ifrs if they wish. Simpliied standards set by canada intended to reduce the inancial burden of private companies. Who sets the accouning standards: the canadian accouning standards board (acsb) responsible for the accouning standards of public and private companies. Ifrs belongs to internaional accouning standards board (iasb). Conceptual frameworks: underlying set of objecives and concepts that guide in jusifying new standards and revising old ones. They were developed with these objecives in mind: To assist organizaions as they develop new inancial reporing standards.