BUS 251 Lecture Notes - Lecture 2: Net Income, Profit Margin, Accounting Equation

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Anne Mac Donald

Document Summary

Accounting standards have been developed to provide companies with a broad set of rules to be followed when preparing financial statements. Ifrs: they are international standards and are used around the world. Most public companies operate internationally and some are also cross listed which means that they are listed on stock exchanges both inside and outside canada. These common set of standards were developed to minimize the differences in financial reporting across countries. Aspe: they represent a set of simplified standards that canadian standard setters have established to reduce the burden of financial reporting for private enterprises within. Both, ifrs and aspe produce financial reporting that is useful to the financial statement users and focus on the needs of shareholders and creditors in determining what information would be useful. Basically, the aim is to provide both the user groups with financial information that helps them make decisions about providing resources to the reporting company.