COMMERCE 1AA3 Lecture Notes - Lecture 1: International Financial Reporting Standards, International Accounting Standards Board, Chief Executive Officer
4 May 2016
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Document Summary
Financial statements are business documents that companies use to report the results of their activities to various user groups which can include managers, investors, creditors, and regulatory agencies. Parties use the reported information to make a variety of decisions, such as whether to invest or loan money to the company. The system of accounting produces the following statements: 1: statement of retained earnings, balance sheet, statement of cash flow. Accounting is an information system that measures business activities, processes data into reports, and communicates results to decision makers. The financial statements measure performance and communicate where a business stands in financial terms. The accounting process begins and ends with people making decisions. All transactions are reported in the companies results. The duration of your financial statement is about a year. When looking at accounting information we are not concerned about the calendar year, but the fiscal year (what happened within the last 12 months)
