BU127 Chapter 2: 2. Investing & Financing Decisions, and Statement of FP
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BU127 Full Course Notes
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Violation of this means that assets & liabilities should be valued and reported on the statement of fp as if the company were to be liquidated (discontinues; all assets sold and debts paid). Consolidated statement of fp means that the classified elements of the statement are (cid:272)o(cid:373)(cid:271)i(cid:374)ed (cid:449)ith those of othe(cid:396) (cid:272)o(cid:373)pa(cid:374)ies u(cid:374)de(cid:396) the (cid:373)ai(cid:374) (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:272)o(cid:374)t(cid:396)ol. Placing 2 amounts side by side for different years allows investors to compare the values. Ifrs begins with noncurrent, while gaap begins with current. Also, ifrs is a, then se, and then l. Cash & cash equivalents: amount of cash & short-te(cid:396)(cid:373) deposits i(cid:374) (cid:272)o(cid:373)pa(cid:374)(cid:455)"s (cid:271)a(cid:374)k a(cid:272)(cid:272)ou(cid:374)ts. Short-term investments: excess cash amounts invested in financial instruments & firms. Trade receivables: amounts owed by customers from prior sales, collected later in cash next year or the operating business cycle of the company (whichever is longer) Notes receivable: amounts to be received from others on specific dates (written format)