22107 Chapter Notes - Chapter 2: International Financial Reporting Standards, Sole Proprietorship, Current Liability
Document Summary
Generally accepted accounting principles (gaap): covers the standards and the general body of rules accountants understand and observe; regulated by the australian accounting standards. Gaap - the accounting standards, rules, principles and procedures that comprise authoritative practice for nancial accounting. Australia follows the international financial reporting standards (ifrs). Analyses changes in accounts that occur between years by calculating the dollar and percentage changes on each item within the nancial statements. May be undertaken on the income statement and cash ow statement. Should include more than two years of data, maybe up to ten years of data. Unearned revenue - revenue for a product or service that has not been earned yet, and so appears as a liability on the balance sheet. Most companies use multi-step statements, which including the following subtotals of income: Income statement may be refereed to as pro t and loss statement, and is used or a speci ed time period.
