Accounting for Business 2 Flashcards
are shareholders involved in the day to day running of the company
no
who runs the company on a day to day basis
director
directors have the duty to
prepare financial statements that fairly represent the financial position and performance of the business
send a copy to the shareholders
send a copy to the registrar of companies
why are accounting rules needed
to make sure there aren’t any unfaithful directors
narrow the differences between accounts making them more comparable
why might a director be untrustworthy about accounts without the rules
under a lot of pressure to do well and scrutiny
what is a source of accounting rules
IASB
what key issues do the IFRSs deal with
what information should be disclosed
how information should be presented
how assets should be valued
how profit should be measured
by law how often must companies publish accounts
annually
under the stock exchanges how often might companies need to publish accounts
quarterly
bi annually
more detailed
what are the 3 sources of regulation
company law
stock exchange rules
international financial reporting standards
problems associated with standards
may change false conformity consensus making to agree on the best way costly complex for organisations
annuals financial reports include what three things
financial statements
corporate governance
management commentory
what is corporate governance
reports to sshreholderes on the way in which the directors have managed and controlled the business
what is the management commentary
contextual information to help understand the financial statements
what are the 5 financial statments required under IAS 1
sOFP statement of cash flows statement of changes in equity statement of comprehensive income explanatory notes
