ADM 1340 Chapter Notes - Chapter 1-5: International Accounting Standards Board, International Financial Reporting Standards, Accounts Payable

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Philip Mc Ilkenny

Document Summary

Chapter 1: the purpose of using financial statements. Accounting: information system that identifies & records the economic events of an organization, then communicates them to a variety of interested users. World economic systems depend on highly transparent, reliable & accurate financial reporting. Investors: use to make decisions to buy, hold, or sell their ownership interest. Lenders: use to evaluate risks of lending money (eg: bankers: internal users. Use accounting info to plan, organize & run companies (work for a company) Eg: financial directors, marketing managers, hr personnel, etc. Marketing: what price should we sell x to maximize profits: external users. Other creditors: use to decide to grant credit (sell on account) to a customer or not (eg: suppliers) Many others with needs & questions: employees & labour unions, customers, tax authorities, regulatory agencies, etc: ethical behavior by users. Ethics are very important to accountants & decision makers who rely on financial information they produce.