RSM219H1 Chapter Notes - Chapter 2: International Financial Reporting Standards, Financial Statement, Retained Earnings
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RSM219H1 Full Course Notes
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Document Summary
Chapter 2 - analyzing transactions & their effects on. Private companies: accounting standards for private enterprises (aspe) Produce financial reporting useful to the statement users. Focus on the needs of shareholders & creditors. Assist organisations as they develop new financial reporting standards. Assist accountants in determining how to account for items for which no specific accounting standards have been developed. Assist users in their interpretation of the information contained in the financial statements. Relevant: information must matter to user"s decision making. Users can use as the basis for developing expectations about the company"s future. Analysts may have projected that a company would achieve a certain revenue target & the actual revenues for that period allow them to assess this. Information is considered to be material if it, or its absence, would impact the decisions of a financial statement user. Assessed from a quantitative perspective (measured in dollars) and qualitative perspective (assessed in context)
