COMM 2010 Lecture Notes - Lecture 1: Public Company Accounting Oversight Board, Enron Scandal, International Accounting Standards Board

• School: University of Virginia
• Department: Commerce
• Course: COMM 2010
• Professor: David Eichelberger

Document Summary

Goals are end result strategy is how you get there. Every financial statement starts with a heading: name of the business, name of the statement, and the date. Specific date and the frame of the time. Income statement and cash flow statement is for year ended. Balance sheet is only good for one year. Fiscal year is any consecutive 12 month period. Income = cost of goods sold expense. Trying to converge us gaap and ifrs so that they"re basically the same. Auditors make sure what the company is saying is accurate. Cash= follow the dollar, does not accurately state financials. Accrual = income is income when earned, expenses are expenses when incurred (both even if they"re not paid yet) Investments- made by a firm to obtain the productive capacity to carry out its business activities. Annual report- used to communicate results of business activities. Balance sheet, income statement, statement of cash flows are major statements.