MGAB01H3 Chapter 2: Chapter 2 Notes

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MGAB01H3 Full Course Notes
Verified Note
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Document Summary
Chapter 2: financial statements framework, presentation, and usage. The conceptual framework of accounting 8,. 4070398890241390770,90/4-0. 9;08 and fundamentals that can lead to consistent standards and that prescribes the nature, It ensures that existing standards and practices are clear and consistent. It makes it possible to respond quickly to new issues. It increases relevance, faithful representation, comparability, and understandability of financial reporting result. Accounting standards may differ from country to country so the international accounting. Standards board (iasb) decided to adapt a new accounting standard, international. Financial reporting standard (ifrs) starting january 1, 2011. Ifrs will only apply to profit oriented publicly traded companies (partnership and sole proprietorship will not have to adapt to this new standard) The conceptual framework of accounting has four main sections: N recognition and measurement criteria (assumptions, principles, and constraints) The main objective of financial reporting is to provide information that is useful to individuals who are making investment and credit decisions.