ch01 - CHAPTER 1 CANADIAN FINANCIAL REPORTING ENVIRONMENT...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 1 CANADIAN FINANCIAL REPORTING ENVIRONMENT
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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 Characteristics of Accounting
Background image of page 2
The CICA Handbook , Section 1000, par. 15 outlines the overall objective as: The objective … is to communicate information that is useful The objective … is to communicate information that is useful to … users in making their resource allocation decisions to … users in making their resource allocation decisions and/or assessing management stewardship .… financial and/or assessing management stewardship .… financial statements provide information about: statements provide information about: 1. 1. an entity’s economic resources, obligations and an entity’s economic resources, obligations and equity/net assets; equity/net assets; 2. 2. changes in an entity’s economic resources, changes in an entity’s economic resources, obligations and equity/net assets; and obligations and equity/net assets; and 3. 3. the economic performance of the entity.” the economic performance of the entity.” Objectives of Financial Reporting-GAAP PE
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
OBJECTIVES OF FINANCIAL REPORTING-IFRS Financial statements are to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions Financial statements prepared for this purpose meet the common needs of most users Financial statements also show the results of the stewardship of management, or the accountability of management for the resources entrusted to it
Background image of page 4
Financial Statements and Other Means of Financial Reporting Major financial statements include: Balance Sheet Statement of Financial Position Income Statement Statement of Comprehensive Income Statement of Statement in Changes in Equity Retained Earnings Statement of Cash Flow Statement of Cash Flow Disclosures Disclosures
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Flow of Information through the Financial Statements Income  Income  Statement Statement Statement of  Statement of  Equity
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/16/2011 for the course ACCOUNTING 400 taught by Professor Jason during the Spring '10 term at Ranger.

Page1 / 25

ch01 - CHAPTER 1 CANADIAN FINANCIAL REPORTING ENVIRONMENT...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online