33:390:430 Lecture Notes - Lecture 4: International Accounting Standards Board, Financial Accounting Standards Board, International Financial Reporting Standards
1 Oct 2018
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Document Summary
Records of historical performance; must be filed quarterly or annually. Internal fs: used by owners to manage day to day functions & analyzing performance. External fs: primary basis from which external constituencies form opinions about the firm"s financial condition and management effectiveness. Chapter 18: financial accounting and reporting: introduction. Financial statements (fs): summarize a company"s operating results & financial position. Insights from fs: accounting concepts and standards. Standards provide consistency in accounting for activities that are common to most firms. International accounting standards board (iasb): determines global accounting standards. Relevance: information must be of value to decision makers. Materiality: information presented must have a significant impact on the fin position of firm. Faithful representation: should faithfully represent the transaction it represents, free from error. Comparability: must be presented in a way that allows it to be compared w/ prior periods & Timeliness: infor should be presented in time to influence decision makers decisions.
