财务会计-财务会计 第一章the financial statements
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Information has predictive or feedback value
2. Reliable
Information is verifiable
Timely
Information must be objective
Can influence a decision
1-9
Ethics in Accounting
Integrity is built in financial accounting as follows: Generally accepted accounting principles (GAAP)
Internal Control Structure Audits of financial statements
and the Cபைடு நூலகம்nadian Securities Administrators
✓Accounting Standards Board (AcSB) ✓ Public Sector Accounting Standards Board ✓ Emerging Issues Committee (EIC) ✓ International Accounting Standards Board (IASB)
The rules that govern accounting are called GAAP (generally accepted accounting principles).
1 - 14
GAAP
CICA Handbook: official source of GAAP; sanctioned by federal and provincial governments
1-5
Users of Financial Statements
Individuals
Government regulatory agencies
Tax Authorities
Investors and creditors
Non-profit organizations
1-6
Financial Accounting
CICA
CGAAC
SMAC
1 - 11
How to Organize a Business
Proprietorships Partnerships Corporations
1 - 12
Corporations
Canadian Business Corporation
Act
Board of Directors
➢ meet GAAP standards for relevance and reliability
1-7
Management Accounting
Financial and operating data about an organization’s activities, processes, operating units products services and customers
Summarize business transactions of business entity for a specified period
Users ➢ External decision makers
Information must: ➢ Be presented in systematic reports
Income Statement
Balance Sheet
Statement of Cash Flow
1-4
The Flow of Accounting Information
1. People make decisions.
2. Business transactions occur.
3. Businesses report their results.
Accounting Standards Board of the Canadian Institute of Chartered Accountants
Securities commissions
1 - 10
Ethics in Accounting and Business
Standards of professional conduct for accountants Self-regulating bodies of accountants
Users - internal decision makers
Information - can generated using assumptions - Future oriented - not governed by GAAP
1-8
Ethics in Accounting
Information must be: 1. Relevant
The Financial Statements Chapter 1
1-1
Learning Objective 1 Use accounting vocabulary.
1-2
Accounting Language
Accounting is an information system that:
•Measures business activities •Process data into reports (financial statements) •Communicates results to decision makers
Stocks
Shareholders
Chief Operating Officers, Presidents,
Managers
1 - 13
How to Do Accounting: Principles and Concepts
Accountants follow professional guidelines.
1-3
Accounting Language
Financial Statements:
Financial information about a business entity that is prepared
in a systematic report format that can be used by decision makers to make decisions
2. Reliable
Information is verifiable
Timely
Information must be objective
Can influence a decision
1-9
Ethics in Accounting
Integrity is built in financial accounting as follows: Generally accepted accounting principles (GAAP)
Internal Control Structure Audits of financial statements
and the Cபைடு நூலகம்nadian Securities Administrators
✓Accounting Standards Board (AcSB) ✓ Public Sector Accounting Standards Board ✓ Emerging Issues Committee (EIC) ✓ International Accounting Standards Board (IASB)
The rules that govern accounting are called GAAP (generally accepted accounting principles).
1 - 14
GAAP
CICA Handbook: official source of GAAP; sanctioned by federal and provincial governments
1-5
Users of Financial Statements
Individuals
Government regulatory agencies
Tax Authorities
Investors and creditors
Non-profit organizations
1-6
Financial Accounting
CICA
CGAAC
SMAC
1 - 11
How to Organize a Business
Proprietorships Partnerships Corporations
1 - 12
Corporations
Canadian Business Corporation
Act
Board of Directors
➢ meet GAAP standards for relevance and reliability
1-7
Management Accounting
Financial and operating data about an organization’s activities, processes, operating units products services and customers
Summarize business transactions of business entity for a specified period
Users ➢ External decision makers
Information must: ➢ Be presented in systematic reports
Income Statement
Balance Sheet
Statement of Cash Flow
1-4
The Flow of Accounting Information
1. People make decisions.
2. Business transactions occur.
3. Businesses report their results.
Accounting Standards Board of the Canadian Institute of Chartered Accountants
Securities commissions
1 - 10
Ethics in Accounting and Business
Standards of professional conduct for accountants Self-regulating bodies of accountants
Users - internal decision makers
Information - can generated using assumptions - Future oriented - not governed by GAAP
1-8
Ethics in Accounting
Information must be: 1. Relevant
The Financial Statements Chapter 1
1-1
Learning Objective 1 Use accounting vocabulary.
1-2
Accounting Language
Accounting is an information system that:
•Measures business activities •Process data into reports (financial statements) •Communicates results to decision makers
Stocks
Shareholders
Chief Operating Officers, Presidents,
Managers
1 - 13
How to Do Accounting: Principles and Concepts
Accountants follow professional guidelines.
1-3
Accounting Language
Financial Statements:
Financial information about a business entity that is prepared
in a systematic report format that can be used by decision makers to make decisions