Term
| financial statement footnotes |
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Definition
| supplementary disclosures that are audited |
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Term
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Definition
additional information which is not audited
EX: sales by region |
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Term
| standard auditor's opinion |
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Definition
1. auditor performed independent review
2. reasonable assurance of no material errors
3. accounting methods correct and reasonable
*statement about management internal controls
unqualified opinion--no errors/concerns
qualified opinion--explain certain exceptions to accounting principles used
adverse opinion--statements not presented fairly |
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Term
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Definition
| issued to shareholders when there is a matter that requires shareholder vote |
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Term
| financial statement analysis framework (6 steps) |
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Definition
1. state the objective and content
2. gather data
3. process data
4. analyze and interpret data
5. report conclusions/recommendations
6. update the analysis |
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Term
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Definition
| list of all journal entries by date |
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Term
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Definition
| list of all journal entries organized by account |
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Term
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Definition
| initial end of period balance in each account |
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Term
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Definition
| balance of each account after adjustments are made |
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Term
| Financial Accounting Standards Board (FASB) |
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Definition
| in the U.S., sets forth GAAP |
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Term
International Accounting Standards Board (IASB)
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Definition
| sets International Financial Reporting Standards (IFRS) outside the U.S. |
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Term
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Definition
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Term
| International Organization of Securities Commisions (IOSCO) |
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Definition
most national authorities belong to this commission
1. protect investors
2. ensure fairness, efficiency, transparency
3. reduce systematic risk |
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Term
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Definition
S-1--registration statement prior to sale of new securities to public
10-K--annual report
10-Q--quarterly report
DEF-14A--prepared in conjunction with proxy statement
8-K--disclose material events
144--issue securities to qualified buyers without registering securities with the SEC, but must inform SEC
3, 4, & 5--involve beneficial ownership of securities by a company's officers and directors
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Term
| required financial statements |
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Definition
1. balance
2. income
3. cash flows
4. owners equity
5. explanatory notes--summary of accounting policies |
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Term
| principles for preparing financial statements |
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Definition
1. fair presentation
2. going concern basis--assumption firm will continue
3. accrual basis--reflect when transactions occur, not cash
4. consistency
5. materiality |
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Term
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Definition
| financial statements that show what a firm's results would be under different accounting standards (GAAP vs. IFRS) |
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