ACCT 1A Chapter Notes - Chapter 7: Royal Canadian Mounted Police, Cash Flow, Canada Revenue Agency
Document Summary
Corporate governance: the procedures designed to ensure that the company is managed in the interests of the shareholders. Good corporate governance can easy a company"s access to capital, lowering both the cost of borrowing (interest rates) and the perceived riskiness of investment in its shares. The public accounting reform and investor protect act ( the sarbanes-oxley act), strengthened financial reporting and corporate governance provisions for public companies. Two broad groups of people use financial statements. This act was established as a response to the collapse of enron. 1) the management of the business; it relies on accounting data to make important. 2) external decision makers, who rely on accounting information to make operating decisions such as pricing of products or expansion important investment and credit decisions. Users of financial statements are interested in three types of information. Helps comparing with other companies and assess the success of the business and the effectiveness of management.
