Business Administration 4407Q/R/S/T Chapter Notes - Chapter 4: Financial Statement, The Seller, Disclose

• School: Western University
• Department: Business Administration
• Course: Business Administration 4407Q/R/S/T
• Professor: Dr.Mike

Document Summary

4 attributes financial information should have if it"s to be useful to stakeholders. Understandability information is provided for moderately skilled audience (ie. people with a reasonable understanding of business and accounting and a willingness to study the information) Comparability important for stakeholders to compare the financial statements of the company over time and with those of other entities. To help achieve this ifrs requires entities to: disclose their accounting policies, disclose any changes to their accounting policies (but no need to disclose changes in estimates, provide information about previous periods in their financial statements. Relevance information is relevant if it influences stakeholder decisions and helps in making predications: however, financial statements are backwards looking and difficult to make predictions unless stable and established company. Reliability representative of the entity"s underlying economic activity and free of bias and material error: however, we have seen that much bias creeps into accounting decisions and policies.