BU227 Lecture Notes - Lecture 2: Financial Statement, Cash Flow, Faithful Representation
Document Summary
Violation of this means that assets & liabilities should be valued and reported on the statement of fp as if the company were to be liquidated (discontinues; all assets sold and debts paid). 2012: advantage: many assets are acquired according to legal contracts that clearly state the acquisition cost. Ifrs begins with noncurrent, while gaap begins with current. Also, ifrs is a, then se, and then l. : economic resources controlled by an entity as a result of past transactions or events. Cash & cash equivalents: amount of cash & short-term deposits in company"s bank economic resources that the firm typically transforms into cash or use: non-current (long-term): accounts. Short-term investments: excess cash amounts invested in financial instruments & firms. Trade receivables: amounts owed by customers from prior sales, collected later in cash. Notes receivable: amounts to be received from others on specific dates (written format)
