RSM219H1 Chapter 1: Overview of corporate Financial Reporting
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RSM219H1 Full Course Notes
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Document Summary
Chapter 1 - overview of corporate financial reporting. Financial accounting: process by which information on the transactions of an organisation is captured, analysed, and used to report to decision makers outside of the organisation"s management team. Creditors: those who have lent money to the organisation. Purpose of financial accounting information: aid users in their economic decision-making. Statement of income: measures the operating performance of a company over a period of time. Statement of changes in equity: measures the changes in the equity of the company over a period of time, differentiating between changes that result from transactions w/ shareholders & those resulting from the company"s operations. Statement of financial position: measures the resources controlled by a company () and the claims on those resources (by creditors and investors) at a given point in time. Statement of cash flows: measures the change in cash flow through operating, financing, and investing activities over a period of time.
