Developing Organizational Design and Culture
This chapter goal is to form a link between management decisions and their impact on the bottom line. The accounting process recorded the transactions that started the business as well as the transactions required to operate the business. According to the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB), when businesses report financial information to users outside the business, they must follow Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). These standards were developed for the purpose of providing relevant and reliable information useful for external decision makers such as investors and creditors. Balance sheet classification of debt and equity securities requires special reporting depending on the intent of the company and design of the security. The Cash Flow Statement provides investors and owners a recap of the sources and uses of cash and cash equivalents during the reporting period.