chapter1_notes - Chapter 1 The Canadian Financial Reporting...

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Characteristics of Accounting: Accounting identifies, measures, analyses, and communicates financial information to various users (decision makers) Accounting has two broad classifications: 1. Financial accounting 2. Managerial accounting Accounting theory and practice have evolved and will continue to evolve to meet changing demands and influences 1. Identification, measurement, and communication of financial information about; 2. Economic entities to; 3. Interested persons. Financial Reporting: Financial accounting provides historical information Financial reporting is used by both internal and external users External users include such decision makers as investors, creditors, unions, and government agencies Managerial accounting provides both historical and forecast information Managerial reporting information is used by management (internal users only) Financial Statements and Other Means of Financial Reporting: Major financial statements include: Balance Sheet Income Statement Statement of Cash Flows Statement of Shareholders’ (Owners’) Equity + Note Disclosures Financial Reporting: Other forms of financial reporting include: President’s letter Prospectuses Government reporting News releases Management forecasts Accounting and Capital Allocation: The accounting profession has the responsibility of measuring a company’s performance accurately, fairly, and on a timely basis These measurements enable investors and creditors to compare the income and assets
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This note was uploaded on 11/16/2009 for the course BBA ADMN1107 taught by Professor M.o'gay during the Fall '08 term at Laurentian.

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chapter1_notes - Chapter 1 The Canadian Financial Reporting...

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