ACTG 211 Lecture Notes - Lecture 1: International Accounting Standards Board, Accounts Receivable, Retained Earnings

• School: University of Oregon
• Department: Accounting
• Course: ACTG 211
• Professor: Brandt

Document Summary

Accounting is a system that identifies, records, & communicates information that is rele(cid:448)a(cid:374)t, relia(cid:271)le, & (cid:272)o(cid:373)para(cid:271)le a(cid:271)out a(cid:374) orga(cid:374)izatio(cid:374)"s (cid:271)usi(cid:374)ess a(cid:272)ti(cid:448)ities. Accepted standards of good & bad behavior. Identify ethical concerns (use personal ethics to recognize ethical concern) Financial accounting is governed by concepts & rules. Relevant info affects decisions of users. Comparable info used in comparisons across years & companies. Setting accounting principles in us, securities & exchange commission (gov. agency) has legal authority to establish reporting requirements. Financial accounting standards board is private group that sets both broad & specific principles. International accounting standards board issues international standards that identify preferred practices in other countries. Measurement principle = accounting info is based on actual cost. Revenue recognition principle provides guidance when a company must recognize revenue. Matching principle prescribes company must record its expenses incurred for revenue. Full disclosure principle requires company to report details behind financial state(cid:373)e(cid:374)ts that (cid:449)ould i(cid:373)pa(cid:272)t users" decisions.