Standard

Companies need to disclose accounting policies and estimates in the footnotes. Policies:  What policies are discussed Whether they covered all relevant data in financial statement …

Analyst should: Be aware of new product and innovation in financial market Effect that new product and transactions have on financial statement Monitor company disclosures …

Characteristics:  Transparency: full disclosure and fair presentation and reveal economics of the company Comprehensiveness: should include all kinds of transactions including new types  Consistency:  Similar …

IASB and FASB made significant progress toward a common framework but the two still differ in many respects Performance:  IASB list income and expenses as …

Required financial statements:  Balance sheet  Statement of comprehensive income  Cash flow statement  Statement of changes in owner’s equity  Explanatory notes Features for preparing financial statements …

Qualitative characteristics of financial statement Specify required reporting elements  Objective  Provide financial information that is useful in making deciding to providing resources to an entity. …

EU required public listed companies to follow IFRS  For countries that have not fully adopted IFRS, accounting standard setter tried to coverage their standard with …

Standard-setting bodies Accountants and auditors that establish financial reporting standard  Two primary bodies are: FASB and IASB Regulatory authorities  Government agencies that have legal authority …

Objectives  Provide information about the firm to current and potential investors, lenders Accounting standard is to put financial statement in uniform Importance Reporting standard → …