week 1

Question 1

how to assess demand

assess demand (process)

Answer 1

1. needs of target market
2. strategic goal or objective
3. desirable product characteristics

Question 2

supply process

Answer 2

1. identify product components
2. product design
3. customaization

Question 3

explain how a conceptaul framework for financail reporting is similar to a business plan

Answer 3

• both need to consider the demands of the amrekt and the ability of the supplier to meet those demands

Question 4

how to supply effective information to investors and lenders

Answer 4

• financial reports should provide infromation that is useful for predicting:
  1. amounts
  2. timing
  3, uncertainty
  for future cash flows
• information about company’s resources, claims, and perforamcne is also beneficial

Question 5

identify the two fundamental and enhancing qualitative characteristics
-> how does IFRS distinguish between these two characteristics

Answer 5

Fundamental
- faithful representation
- relevance
–> these are essential and must be present for information to be useful

Enhancing
- comparability
- timeliness
- understandability
- verfiability
–> are desirable and help increase usefulness
–> are not essential to take in the information

Question 6

who sets accounting standards in Canada

Answer 6

• AcSB has delegated standard setting for these entities to the International Accounting Standards Board