ADMS 3585 Chapter Notes - Chapter 1: Public Company Accounting Oversight Board, Canadian Securities Administrators, Finance Lease

• School: York University
• Department: Administrative Studies
• Course: ADMS 3585
• Professor: Ping Peng

Document Summary

Financial reporting identifies, measures, and communicates financial information about: economic entities to interested persons (decision makers) Financial reporting is used by both internal and external users. External users include such decision makers as investors, creditors, unions, and government agencies: managerial accounting provides both historical and forecast information, managerial reporting information is used by management (internal users only, major financial statements include: Income statement: balance sheet, statement of cash flows, statement of shareholders" (owners") equity. Other forms of financial reporting include: president"s letter, prospectuses, government reporting, news releases, management forecasts. Depends on the nature of reporting entity: public firms, private firms, other (npos, pension funds) Stakeholder: any parties that have a stake with a firm"s financial information. Includes anyone who prepares, relies on, reviews, audits, or monitors financial information: key stakeholders include. Financial reporting aids users in the allocation of scarce resources (capital) The accounting profession has the responsibility of measuring a company"s performance accurately, fairly, and on a timely basis.