BUS 320 Lecture Notes - Lecture 1: Financial Statement, International Financial Reporting Standards, Resource Allocation

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Maureen Fizzel

Document Summary

Adopted in canada as of january 1, 2011. Private companies can opt for ifrs or private entity gaap. Public companies with year ends in 2011, published comparative financial statements using ifrs o. Standard setting should build on an established body of concepts and objectives. Able to issue additional useful and consistent standards over time. Increase financial statement users" understanding of and confidence. Enhance the comparability of different companies" financial statements. Capable of making a difference in a decision. Predictive value help users make predictions about the final outcome of past, present, and future events. Feedback (confirmatory) value help users confirm or correct their previous expectations: materiality how important a piece of information is. Reflect the underlying economic substance of an event or transaction. Completeness the statements should include all information necessary to portray underlying events or transactions. Neutrality the information cannot be selected to favor one set of interested parties over another.