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money resources money as you

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Unformatted text preview: ? ? ? ? ? ? ? ? ? ? ( money ) Resources = Money $$$ As you can imagine, resources are limited. Accounting helps make resources (money) available to the most efficient users. If financial data is “Relevant” and “Reliable” investors and creditors can make informed decisions on how to allocate their resources (money). Chapter 1- 6 Challenges facing accounting Challenges facing accounting 1. No nonfinancial measures : customer satisfaction ex. 2. No forward looking information: nobody knows what a company’s going to do 3. Soft assets: intellectual capital, HR 4. Timeliness Chapter 1-7 Objectives of Financial Reporting Objectives of Financial Reporting 1. Defined in SFAC # 1 ? ? ? 2. Useful to investors and creditors for decision making 3. Help investors and creditors assess timing of cash receipts 4. Display economic resources and claims against those resources Chapter 1-8 Why do we need accounting standards? Why do we need accounting standards? Accounting was an art, subject to the creativity of the accountant until the 1930’s 1.Comparability 2.Minimize bias, ambiguity ? ? , inexactness ? ? ? and misinterpretation ? ? Chapter 1- 9 Need to Develop Standards Need to Develop Standards Various users need financial information The accounting profession has attempted to develop a set of standards that are generally acc...
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