Brian Lam Notes ACCT1501 PDF

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Brian Lam Notes...

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Brian Lam

12/06/2015

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huge amounts of money could be spent trying to make the reports absolutely perfect, but since that money would have to come out of the organisation's funds, spending it would make its perfonnance and position poorer. - Credible periodic reporting

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Brian Lam

12/06/2015

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Relevance- Faithful representation Comparibility - veriability Timeliness- Understandability

x Cash flow statementsH[SODLQFKDQJHVLQFDVKLQWKHEDODQFHVKHHW x &KDQJHVLQUHWDLQHGSURILWVDUHGHWDLOHGLQWKHnote for retained profitsDQGincome statement 

Assets- Liabilities + Equity

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FUNDAMENTAL QUALITATIVE Characteristics ! - The financial statements need to contain information that is useful for decision-making. Relevance Faithful representation - The financial statements should be free from bias. ENHANCING QUALITATIVE characterisitcs Comparability - Information about one organisation is more useful when it can be compared with similar information from another organisation and also is comparable over time within the same organisation. Verifiability - The numbers in the financial statements can be verified (e.g. looking at documentation, direct observation, checking inputs and outputs to a model formula) Timeliness - Providing information in time for the user to incorporate the information in their decisions. Understandability - Information is more useful if it is understandable to informed decision-makers. - Increased - presenting info in clear concise manner Relevance- Faithful representation Comparibility - veriability Timeliness- Understandability

Brian Lam



12/06/2015

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