BUSS1030 Lecture Notes - Lecture 1: Legal Personality, Financial Accounting, Financial Statement

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

L01 explain the nature and role of accounting: accounting collection, analysis and communication of economic information used for decision making, planning and control, eg. Accounting as a service function: provide financial information to clients" later in notes. Note: must satisfy both, no point if info is relevant but not faithfully represented vice versa. Independent experts can agree it provides a faithful portrayal reach consensus: timeliness produced in time for users to make decisions, understandability set out clear and concise. Benefits of providing info should outweigh the costs. Accounting process: identifying and capturing relevant economic information, recording the information collected in a systematic manner, analysing and interpreting the information collected, reporting the information in a manner that suits the needs of users. Qualitative characteristics of accounting information l01: objective of financial reporting to provide information for making investment and lending decisions. Different eg. the owner"s house doesn"t show up in business" accounting records same different different same different.