Partners, Managers, Staff Guided by GAAS Information Intermediaries: Analysis and Advice Financial analysis, Information services Board of directors elected by the stockholders to represent their interest, is responsible for maintaining the integrity of the company’s financial reports. An unqualified (clean) audit opinion is an auditor’s statement that the financial statements are fair presentations in all material respect in conformity with GAAP Users: Analysis and Decision Investors, Lenders, … Government Regulators: Verification SEC Members Guided by SEC regulations Netherlands Syllabus: Institutioneel kader Earnings forecasts are predictions of earnings for future accounting periods Institutional investors are manager of pension, mutual, endowment and other funds that invest on the behalf of others. Private investors include individuals who purchase shares in companies Lenders include supplies and financial institutions that lend money to companies. The cost-benefit constraint suggests that the benefits of accounting for and reporting information should outweigh the costs. Guiding Principles for Communicating Useful Information Primary Objective of External Financial Reporting To provide economic information to external users for decision making. Primary Qualitative Characteristics Relevance: Timely and Predictive Feedback Value Reliability: Accurate, Unbiased, and Verifiable Secondary Qualitative Characteristics Comparability: Across businesses Consistency: Over time Relevant information can influence a decision, it is timely and had predictive a/or feedback value. Reliable information is accurate, unbiased and verifiable.
Partners, Managers, Staff Guided by GAAS Information Intermediaries: Analysis and Advice Financial analysis, Information services Board of directors elected by the stockholders to represent their interest, is responsible for maintaining the integrity of the company’s financial reports. An unqualified (clean) audit opinion is an auditor’s statement that the financial statements are fair presentations in all material respect in conformity with GAAP Users: Analysis and Decision Investors, Lenders, … Government Regulators: Verification SEC Members Guided by SEC regulations Netherlands Syllabus: Institutioneel kader Earnings forecasts are predictions of earnings for future accounting periods Institutional investors are manager of pension, mutual, endowment and other funds that invest on the behalf of others. Private investors include individuals who purchase shares in companies Lenders include supplies and financial institutions that lend money to companies. The cost-benefit constraint suggests that the benefits of accounting for and reporting information should outweigh the costs. Guiding Principles for Communicating Useful Information Primary Objective of External Financial Reporting To provide economic information to external users for decision making. Primary Qualitative Characteristics Relevance: Timely and Predictive Feedback Value Reliability: Accurate, Unbiased, and Verifiable Secondary Qualitative Characteristics Comparability: Across businesses Consistency: Over time Relevant information can influence a decision, it is timely and had predictive a/or feedback value. Reliable information is accurate, unbiased and verifiable.