MGT220H5 Chapter Notes - Chapter 4: Tim Hortons, Net Income, Comprehensive Income
Document Summary
Income tax expense: operating (rev, exp, non operating (gain/loss) 3: total : income from continuing operation, discontinued operation, total: net income, other comprehensive income. Assist in predicting future performance (i. e. , predictive value) Assess potential risk or uncertainty in achieving future cash flows (e. g. , recurring vs. non- recurring) As tim horton"s earned 10$ from gains it"s more risky to guess whether they will again attain. Starbucks income is more sustainable as their income is coming from operating activities. Quality of earnings: how solid earnings numbers are: characteristics of high quality earnings, nature of content. Integrity of the information (i. e. , representational faithfulness: unbiased and determined objectively, represents economic reality. [ sustainability ] of the earnings: reflects earnings from on-going operations, closely correlated with cash flows from operations, presentation, does not disguise or mislead (transparent, earnings presentation is clear and concise, easy to use and understandable. Single step is: presents only two groupings before income before discontinued operations :
