MGCR 211 Lecture Notes - Lecture 1: Deepwater Horizon Oil Spill, Financial Accounting, Social Accounting
26 May 2016
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Document Summary
Social accounting is relatively new, came after the bp oil spill for issues related to sustainability and social environment. Accounting info has to be relevant, in terms of users decision. Accounting info has to be comparable, among oneself, between companies, and industry. Accounting info has to be verifiable, in terms of getting replicate. Accounting info has to be available before it looses its usage. Accounting info has to be clear and concise. Three most important ones: matching principle: when you record revenue, you should also record at the same time any expenses directly related to the revenue, revenue recognition principle, cost principle- record an asset at its original cost/purchase price. Even though there is the time principle, it is not always the case. Balance between quantitative and qualitative characteristics: not always clear. To see if company can keep up with payments. Financial section where you can see the financial statements.
