Lecture_Topic_1_Intro_to_Corp_Fin_Rep_4xpage

Lecture_Topic_1_Intro_to_Corp_Fin_Rep_4xpage - Diane...

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1 Diane Mayorga Lecturer – Topics 1, 2, 3 and 4 Consultation Hours: Quad 3070 from 12:00pm to 1:00pm and 5:00pm to 6:00pm on Wednesdays Please note: I will not respond to questions about lecture topic content via email. Please seek help from me during my consultation. All administration queries should be directed to Jeffrey Knapp. Lecture Topic 1 Introduction to Corporate Financial Reporting Session 2 - 2010 Topic 1 - Learning Objectives ( Introduction to Corporate Financial Reporting) Understand and appreciate: y Purpose of external financial reporting y Regulatory framework and reporting requirements of Australian companies y Role of accounting standards in financial reporting y Role of IASB and AASB in accounting standard setting y Role of a conceptual framework of accounting Reference Readings y Picker et al, Chapters 1 and 2 y Conceptual Framework – SACs 1-2 and AASB F ramework y available for download on AASB’s website ( www.aasb.com.au ) y Lecture Notes
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2 What is the purpose of external financial accounting? Financial Accounting Defined y Financial accounting is a process involving the collection and processing of financial information to assist the decision-making needs of parties external to the organisation y Contrasted with management accounting: y focuses on providing information for decision- making by parties within the organisation y is largely unregulated External financial reporting objectives y Provide true and fair presentation of the company’s business transactions y Provide users with relevant and reliable information to assist in making and evaluating business decisions y Allow managers to discharge their accountability General- vs. special-purpose reports y General-purpose financial reports y Comply with the AASB Framework and accounting standards y Meet the information needs common to users who are unable to command the preparation of reports tailored to satisfy, specifically, all their information needs y Represent financial statements and supporting notes included within an annual report presented to shareholders at a company’s annual general meeting y Special-purpose financial reports y Designed to meet the needs of a specific group or to satisfy a specific purpose y Example: Bank demanding as part of a loan agreement that borrowing entity provide information about projected cash flows
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3 Australian Vintage Ltd 2009 Annual Report hwww.australianvintage.com.au/LinkClick.aspx?fileticket=wv7rjzaNTbw%3d&t abid=154&mid=484ttp:// External financial reporting regulation Five main bodies formulate and/or enforce accounting regulations in Australia: 1. The Financial Reporting Council (FRC) 2. The Australian Accounting Standards Board (AASB (AASB) 3. The Australian Securities and Investments Commission (ASIC) 4.
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This note was uploaded on 09/14/2011 for the course ACCT 1001 taught by Professor John during the Spring '11 term at Renmin University of China.

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Lecture_Topic_1_Intro_to_Corp_Fin_Rep_4xpage - Diane...

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