Ch 1 notesWhy does accounting matter? accounting is the language of business global economic systems depend on reliable and accurate fnancial reportingUsers of Financial InformationInternal users - plan, organize and run a business pricing, strategies, mar!eting, "ages, resources,etc#External users - in$estors, creditors, others ta% authorities, customers, labour unions, etc#&thical 'eha$iourfor accounting information to ha$e $alue, preparers must ha$e high ethical standards - actions are legal and responsible, consider organization(s interestsaccountants, other professionals, and most companies ha$e rules or codes of conduct to guide ethical beha$iourcompanies ha$e rules of conduct)nnual *eport publicly traded companies must prepare an annual report each year includes fnancial and non fnancial information about the company Financial - +,-), auditors( report, fnancial statements and notes .onfnancial - company(s mission and goals, products, people/enerally )ccepted )ccounting 0rinciples /))0# *ules and practices for the preparation of fnancial statements ,i1erent for publicly-traded and pri$ate corporations 0ublicly-traded corporations use International Financial *eporting 2tandards IF*2# 0ri$ate corporations may use IF*2 or )ccounting 2tandards for 0ri$ate &nterprises )20 0roprietorships and partnerships do not ha$e to use IF*2 or )20& as statements are prepared for internal users only