BUSI 1101 Lecture Notes - Lecture 6: International Financial Reporting Standards, Financial Statement, Income Statement
17 Mar 2018
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Document Summary
Rules and practices for the preparation of financial statements. Different for publicly-traded and private corporations: publicly-traded corporations use international financial reporting standards (ifrs, private corporations may use ifrs or accounting standards for private. Proprietorships and partnerships generally follow aspe for external reporting: not required to follow any particular standards for internal use. All companies are involved in all three activities: financing, investing, operating. Obtaining (and repaying) funds to finance the operations of the business: selling or repurchasing shares, equity, borrowing money or repaying loans, debt. Forms of debt: bank indebtedness, bank loans, long-term debt such as mortgages, bonds, finance leases. Purchase or sale of long-lived assets needed to operate the company. Examples: purchase or sale of long-lived assets such as property, plant and equipment and intangible assets, purchase or sale of investments, such as shares or debt securities of other companies. Operating activities are the main day-to-day activities of the business.
