Watching this resources will notify you when proposed changes or new versions are created so you can keep track of improvements that have been made.
Favoriting this resource allows you to save it in the “My Resources” tab of your account. There, you can easily access this resource later when you’re ready to customize it or assign it to your students.
The objective of business financial reporting is to provide information that is useful for making business and economic decisions.
Distinguish between Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS)
State the objectives of accounting
Specifically, the information should be useful to investors and lenders, be helpful in determining a company's cash flows, and report the company's assets, liabilities, and owner's equity and the changes in them.
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries.
The Financial Accounting Standards Boards Statements of Financial Accounting Concepts No. 1 states the objective of business financial reporting, which is to provide information that is useful for making business and economic decisions. Specifically, the information should be useful to investors and lenders, be helpful in determining a company's cash flows, and report the company's assets, liabilities, and owner's equity and the changes in them.
With these objectives in mind, financial accountants produce financial statements based on the accounting standards in a given jurisdiction. These standards may be the generally accepted accounting principles of a respective country, which are typically issued by a national standard setter, or International Financial Reporting Standards, which are issued by the International Accounting Standards Board.
Generally Accepted Accounting Principles refer to the standard framework of guidelines for financial accounting used in any given jurisdiction; generally known as accounting standards or Standard accounting practice. These include the standards, conventions, and rules that accountants follow in recording and summarizing, and in the preparation of financial statements.
International Financial Reporting Standards (IFRS) are designed as a common global language for business affairs so that company accounts are understandable and comparable across international boundaries. They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards.The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external.
provide a way to determine if a business is financially sound, provide information to help determine a company's cash flow, provide a method to report changes in a company's assets, and provide information that is useful in making business and economic decisions
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
"US Navy 080111-N-8273J-033 Chief of Naval Operations (CNO) Adm.
Gary Roughead talks with project managers while touring Pacific Beacon, the Navy's first large-scale housing privatization facility for single Sailors."