Scribd Logo
Upload

Welcome to Scribd!

  • 48 views

    Session 1 PDF

    Uploaded by

    Farghab
    This document discusses the importance of accounting and financial reporting for capital allocation. It states that as financial markets become more interconnected, businesses have more options to raise capital but providers need comparable information to efficiently allocate this limited resource. Accurate and timely accounting that is reported through financial statements facilitates capital allocation decisions by present and potential investors. The two main standard setting bodies that issue financial reporting standards are the International Accounting Standards Board and the Federal Accounting Standards Board. The document also briefly mentions some consequences when financial reporting fails and challenges that exist regarding expectations of what accountants can and should provide.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Session 1 PDF

    Uploaded by

    Farghab
    48 views6 pages
    This document discusses the importance of accounting and financial reporting for capital allocation. It states that as financial markets become more interconnected, businesses have more options to raise capital but providers need comparable information to efficiently allocate this limited resource. Accurate and timely accounting that is reported through financial statements facilitates capital allocation decisions by present and potential investors. The two main standard setting bodies that issue financial reporting standards are the International Accounting Standards Board and the Federal Accounting Standards Board. The document also briefly mentions some consequences when financial reporting fails and challenges that exist regarding expectations of what accountants can and should provide.

    Original Title

    Session+1.pdf

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses the importance of accounting and financial reporting for capital allocation. It states that as financial markets become more interconnected, businesses have more options to raise capital but providers need comparable information to efficiently allocate this limited resource. Accurate and timely accounting that is reported through financial statements facilitates capital allocation decisions by present and potential investors. The two main standard setting bodies that issue financial reporting standards are the International Accounting Standards Board and the Federal Accounting Standards Board. The document also briefly mentions some consequences when financial reporting fails and challenges that exist regarding expectations of what accountants can and should provide.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    48 views6 pages

    Session 1 PDF

    Uploaded by

    Farghab
    This document discusses the importance of accounting and financial reporting for capital allocation. It states that as financial markets become more interconnected, businesses have more options to raise capital but providers need comparable information to efficiently allocate this limited resource. Accurate and timely accounting that is reported through financial statements facilitates capital allocation decisions by present and potential investors. The two main standard setting bodies that issue financial reporting standards are the International Accounting Standards Board and the Federal Accounting Standards Board. The document also briefly mentions some consequences when financial reporting fails and challenges that exist regarding expectations of what accountants can and should provide.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    z

    CFR-I Fall 2020


    Financial Markets and Financial Reporting
    z

    § Financial markets world over are


    becoming increasingly
    interconnected and
    businesses have wider choices in
    terms of where to raise capital

    § But as financing is a limited


    resource, providers would like to
    allocate capital as efficiently as
    possible …capital providers require
    comparable information
    to make these decisions

    § This is where accounting &


    financial reporting come in….

    Learning Ojective 1
    z
    Accounting, Financial Reporting and Capital
    Allocation
    Accounting measures performance
    fairly and on a timely basis to
    facilitate decision making

    Financial Reporting -
    § provides useful financial
    information
    § to present and potential investors
    (equity & creditors )
    § for making capital allocation
    decisions
    Financial Reporting Standards
    z
    Two main standard setting bodies
    1. International Accounting Standards
    Board (IASB) –principle based
    2. Federal Accounting Standards Board
    (FASB)- rule based

    Learning Ojective 1
    z
    What Happens When Financial Reporting Fails?

    § https://www.accountancyage.com/2019/03/20/a-summary-of-the-
    cases-of-financial-scandals-of-2018/
    z
    Financial Reporting Challenges

    The Expectations Gap

    What the public thinks


    accountants should do vs.
    what accountants think they
    can do.

    You might also like