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).
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
3. Help investors and creditors assess timing of cash
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
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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This note was uploaded on 03/02/2012 for the course AICS 3115 taught by Professor Lynnalmond during the Spring '11 term at Virginia Tech.
- Spring '11