Lecture Notes Week 4 - WEEK 4: FINANCIAL REPORTING...

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WEEK 4: FINANCIAL REPORTING PRINCIPLES 1. Introduction In these lectures we continue our examination of the communication of financial information through financial statements. We begin by taking a look at the “big picture” of accounting. The principles of financial reporting govern the way in which we apply and interpret accounting rules, make choices in the design of accounting systems and in the recording and reporting of economic events. The lecture explores the qualitative and quantitative issues surrounding the production of financial information. The link between the financial reports will be reinforced. The second lecture of the week moves on to discuss the process and the various components of the accounting cycle. Objectives At the end of this topic you should be able to: Appreciate the role of GAAP in financial reporting Discuss the assumptions underlying financial reports and qualitative characteristics of financial reports Describe the relationship between financial reports Understand the purpose of the components of the accounting cycle Distinguish between external and internal transactions Recognise source documents and the information they contain Identify account types and the effect of debits and credits on them Recognise journal entries, posts to the General Ledger and trial balances Understand the role of T-accounts when recording in the GL Required reading Framework for the preparation and presentation of financial statements (downloadable from http://www.aasb.com.au ) Trotman & Gibbins Chapter 1, pg 23 (Refresher) Trotman & Gibbins Chapter 6, pg 286-303, pg 307-311 Trotman & Gibbins Chapter 4, pg 154-169 Session 1, 2009 AFM1A
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Session 1, 2009 AFM1A 2. Tutorial Questions – Week 5 Students should attempt these questions before the tutorial. Preparation Questions TG 6.1 TG 4.4 TG 4.7 TG 4.13, Parts 1-3 Tutorial Questions Chapter 4, Discussion Questions 8, 9 TG 4.14 (except part 4) TG 6.8
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Accounting and Financial Management 1A Dr. Amna Khalifa Quad 3104 Week 4 Session 1, 2009 Financial Reporting Principles Today’s lecture objectives: ± Understand the information needs, supply and demand of information, and the cost of reporting ± Understand the principal qualitative characteristics of financial reports ± Appreciate the trade-off and constraints in the preparation and presentation of financial reports ± The accounting cycle What is Financial Reporting? ± General purpose financial reporting Objective is to provide information about the firm’s financial position, performance and cash flows to help users make economic decisions (See AASB Framework pg 12-13) Includes: Balance Sheet Income Statement Cash flow Statement Statement of Changes in equity Notes to the accounts and other relevant explanatory materials
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Market for Accounting Information ± There is a market for accounting information Demand for “information” i.e., to make decisions
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This note was uploaded on 01/22/2011 for the course ACCT 1501 taught by Professor Helen during the Three '09 term at University of New South Wales.

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Lecture Notes Week 4 - WEEK 4: FINANCIAL REPORTING...

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