Management and Organizational Studies 3360A/B Chapter Notes - Chapter 4: Financial Statement, Retained Earnings, Earnings Management

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3360A/B
• Professor: Christina Maco

Document Summary

Income is affected by the accounting methods employed: different ways to depreciate. Earnings presented in a clear, concise manner. Info is easy to use and understandable: earnings management, process of targeting certain earnings levels or desired future trends and then working backwards to determine what has to be done to ensure targets are met. Intermediate components: common for companies to present some or all of the following sections and totals within the income statement. Income tax: operating, nonoperating, discontinued operations, other comprehensive income, earnings per share. Includes: all revenues and gains, expenses and losses reported in net income, all gains and losses that bypass net income but affect shareholders" equity--> referred to as. Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations; or. Income or loss from operation of the discontinued segment up to the measurement date.