MGAC01H3 Lecture Notes - Financial Statement, Retained Earnings, Income Statement
3 Aug 2014
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Learning goals: to understand the concepts underlying the measurement and presentation of income, to know the intermediate components of income, to learn and review the financial statement components - comprehensive. To understand the concepts underlying the measurement and presentation of income: importance of the income statement. Helps to predict the amount, timing and uncertainty of future cash flows. Evaluate the past performance of a company: limitations of the income statement. No general agreement on how to measure well-offness . Income numbers are affected by the accounting method used (concept of quality of earnings and the impact of earnings management: income statement format: disclosure of the intermediate components of income. Presentation of items after income from continuing operations: discontinued operations. Income or loss from the operation of the discontinued segment up to the measurement date, net of tax: gain or loss from disposal of the discontinued segment, net of tax, unusual gains and losses.
