vlateHality laicil eaeh Item above with a description below 1· Ab ility to easil
ID: 2333258 • Letter: V
Question
vlateHality laicil eaeh Item above with a description below 1· Ab ility to easily evaluate one company's results relative to another's. Belief that a company will continue to operate for the foreseeable future. The judgment concerning whether an item's size is large enough to matter to decision-makers The reporting of all information that would make a difference to financial statement users. 5. 6.- The practice of preparing financial statements at regular intervals -The quality of information that indicates the information makes a difference in a decision. A belief that items should be reported on the balance sheet at the price that was paid to acquire them. A company's use of the same accounting principles and methods from year Tracing accounting events to particular companies to year 9. The desire to minimize bias in financial statements. Reporting only those things that can be measured in monetary units. Dictates that efforts (expenses) be matched with results (revenues). 12. *E3-21 Speyeware International Inc., headquartered in Vancouver, Canada, specializes in Internet safety and computer security products for both the home and commercial mar- kets. In a recent balance sheet, it reported a deficit of US$5,678,288. It has reported only net losses since its inception. In spite of these losses, Speyeware's shares of st traded anywhere from a high of $3.70 to a low of $0.32 on the Canadian Venture Exchange.Explanation / Answer
The objective of financial reporting is to provide information regarding the profitability of the company alongwith its gross and net worth of the company, to the shareholders and other stakeholder’s like creditors and government and other prospective investors. This objective meets full/all needs of the investors of Speyeware as it disclose all the required informations like profitability and net worth of the company. The prospective investors are egar to buy the shares of Speyeware because they think that the company possesses good future prospects and would come in green in its forthcoming good times. The change of currency from Canadian dollars to US dollars is that volume of the loss seems of lower level in comparison of Total assets in absolute value. Moreover, the information would reach out to other prospective investors of the other countries except Canada. The company can go for more capital issue due to requirement of the capital, therefore it has changed the reporting currency from Canada to US dollars.
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