After studying this chapter, you should be able to:
As you have learned in your study of this textbook, financial statements contain a wealth of useful information to help investors and creditors assess the amounts, timing, and uncertainty of future cash flows. In addition, the usefulness of accounting reports is enhanced when companies provide note disclosures to help statement readers understand how IFRS was applied to transactions. These additional disclosures help readers understand both the judgments that management made and how those judgments affected the amount reported in the financial statements. Some users, however, feel we need to go even further.
The IASB has heard these demands for improved financial reporting and disclosure and is responding. It ...