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GAAP (Financial reporting (Objective: Provide information about the…
GAAP
Financial reporting
Definition:Financial reporting refers to statutory disclosure of general purpose financial information by limited liability entities via the annual report and accounts
Objective: Provide information about the reporting entity that is useful to existing and potential investors, lenders and creditors in making decision about providing resources to the entity.
Investors: Individual and corporate investors need financial information to assess investment risk and return, and the stewardship of management
Lenders: Banks and other financial institutions need financial information to assess lending risk and return
Creditor: suppliers and other trade creditors need financial information to assess credit risk and return
The Regulatory Framework is needed to ensure the financial statements are prepared in a standard way and provide high quality , reliable information for external users.
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Accounting Standards
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Definition： Accouting standard is authoritative statment on how a particular type of transaction or other events should be reflected in the financial statements.
Stock exchange
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is an institution,organization or association that serves as a market for trading financial instruments such as stocks, bonds and their related derivates.
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