CSC Chapter 11: Corporations and Their Financial Statements

statement of comprehensive income

A financial statement which shows a company’s revenues and expenditures resulting in either a profit or a loss during a financial period.

statement of financial position

A financial statement showing a company’s assets, liabilities and equity on a given date.

current asset

Cash and assets which in the normal course of business would be converted into cash, usually within a year, e.g., accounts receivable, inventories.

public corporation

A company whose shares are listed on a stock exchange or traded over the counter.

continuous public disclosure

The act of a public corporation complying with continuous disclosure requirements set out by the relevant provincial securities act.

current liabilities

Money owed and due to be paid within a year, e.g., trade payables.

trade payables

A current liability on the statement of financial position that reflects the money owed by a company for goods or services purchased, payable within one year.

trade receivables

A current asset on the statement of financial position that reflects the money owed to a company for goods or services it has sold, for which payment is expected within one year.

voting trust

An arrangement whereby shareholders surrender voting rights to a trustee, thereby placing control of a company in the hands of certain managers for a given period of time, or until certain results have been achieved.

partnership

A form of business organization that involves two or more people contributing to the business and legislated under the federal Partnership Act.

goodwill

An intangible asset on the statement of financial position that is understood to represent the value of a well-respected business.

insider trading

Trading in a security by someone who has access to non-public material information.