Management and Organizational Studies 2310A/B Chapter Notes - Chapter 2: Financial Statement, Impaired Asset, Current Liability

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Shang Tang

Document Summary

Intangible: liabilities, current- life less than 1 year. Net working capital: difference between a firm"s current assets and current liabilities. Ifrs permits reversals of impairment losses and upward revaluation of assets: result in an increase in the carrying value of assets. Impairment loss- the amount by which the carrying value of an asset or cash- generating unit exceeds its recoverable amount: for a financial manager, their goal is to increase the market value of the stock. Statement of comprehensive income: measures performance over some period of time, usually a year, revenues expenses = income, net income, can be expressed on a per-share basis (earnings per share) Income reported when earned or accrued: non-cash items, expenses charged against revenues that do not directly affect cash flow, ex. Depreciation: time and costs, fixed costs- must be paid no matter what, ex. Property taxes: variable costs- vary with output level, ex. + depreciation, - tax: capital spending - net spending on fixed assets.