OVERVIEW OF CORPORATE FINANCIAL REPORTING
After studying this chapter, you should be able to:
- Define accounting and understand its relationship to economic decision-making.
- Understand what an annual report is and what it contains.
- Describe the major forms of business organization in which accounting is used.
- Identify several users of financial statements and begin to understand how they use accounting information.
- Know what the terms “generally accepted accounting principles” (GAAP) and “international financial reporting standards” (IFRS) mean.
- Identify the qualitative characteristics and constraints of accounting information.
- Describe the three fundamental business activities.
- Identify the major financial statements and describe their main components.
- Begin to understand the role of ethics in financial accounting.
Principle of Caution Fuels Growth
Fashion retailer H&M was established in Västerås, Sweden, in 1947 by Erling Persson. Its philosophy—to bring fashion and quality at the best ...