nIngC lII lBrting information from Canadian dollars to U.S dollars likely affect
ID: 2333259 • Letter: N
Question
nIngC lII lBrting information from Canadian dollars to U.S dollars likely affected the readers of Speyeware's financial statements. Include in your answer an assessment of the comparability of the information. *E3-22 A friend of yours, Gina Moore, recently completed an undergraduate degree in teristics science and has just started working with a biotechnology company. Gina tells you that the owners of the business are trying to secure new sources of financing which are needed in order tive for the company to proced with development of a new healthcare product. Gina said th boss told her that the company must put together a report to present to potential investors care product. Gina said that her Gina thought that the company should include in s packaget detailed scientific findings related to the Phase I clinical trials for this product. She said, '"I know that the bio- e report all the scientific findings, everyone will see what a sure success this is going to be! The president was talking about the importance of following some set of accounting principles. Why do we need to look at some accounting rules? What they need to realize is that we have scientific results that are quite encouraging, some of the most talented employees around, and the start of some really great customer relationships. We haven't made any sales yet, but we will. We just need the funds to get through all the clinical testing and get government approval for our product. Then these investors will be quite happy that they bought in to our company early! tech industry sometimes has only a 10% success rate with new products, but if w Instructions -- (a) What is accounting information? 2 (b) Comment on how Gina's suggestions for what should be reported to prospective inves tors conforms to the qualitative characteristics of accounting information. Do you think that the things that Gina wants to include in the information for investors will 2 conform to financial reporting guidelines? S: SET B AND CHALLENGE EXERCISESExplanation / Answer
a. Accounting information arises from business transactions. It is quite ascertain for cash basis. Furthermore, It is used in the form of books where cash is received, and expenses are recorded when cash is paid out. It may take leadership decisions. In accounting system, the transactions in accrual accounting are recorded with respect to the accounting equation, where every transaction has a debit side and a credit side. This is called accounting. It is a set of concepts and techniques that are used to measure and report financial information about an economic unit. The economic unit is generally considered to be a separate enterprise. It includes business managers, owners, creditors, governmental units, financial analysis, and even employees.
b. Yes, I think that Gina’s want to include in the information for the investors will confirm to financial reporting guidelines. Because it is used for small scale business purposes.
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