Chapter 11: Corporations and their Financial Statements

In this section

• 11.1 Corporations and Their Structure
  • 11.1.1 Types of Business Structures
    A detailed examination of various business structures including sole proprietorships, partnerships, and corporations, and their significant features in the context of financial services.
  • 11.1.2 Formation and Ownership
    Understanding the incorporation process and the concepts of shareholders and share classes.
  • 11.1.3 Corporate Governance
    An in-depth exploration of corporate governance, focusing on the roles and responsibilities of the Board of Directors and Executive Management.
• 11.2 Financial Statements of a Corporation
  • 11.2.1 Balance Sheet
    Understanding the structure, components, and significance of a corporation's balance sheet, including an explanation of the accounting equation.
  • 11.2.2 Income Statement
    An in-depth exploration of the income statement, with a focus on how revenue and expenses determine profitability, and the significance of Earnings Per Share (EPS) in evaluating corporate performance.
  • 11.2.3 Cash Flow Statement
    An in-depth exploration of the Cash Flow Statement, including the categorization of cash flows into operating, investing, and financing activities to evaluate a corporation's liquidity and cash management efficiency.
  • 11.2.4 Statement of Changes in Equity
    An in-depth overview of how corporations report changes in their equity interests over a given period through the Statement of Changes in Equity.
• 11.3 The Annual Report
  • 11.3.1 Purpose and Components
    Understanding the purpose and essential components of annual reports in communicating corporate performance and governance to stakeholders.
  • 11.3.2 Management Discussion and Analysis (MD&A)
    Exploring the MD&A section of corporate financial statements, including management's interpretation of financial results, risk factor disclosures, and future outlooks.
• 11.4 Public Company Disclosures and Investor Rights
  • 11.4.1 Mandatory Disclosures
    An in-depth examination of the regulatory requirements for public companies to disclose financial and operational information, focusing on mandatory disclosures and material information.
  • 11.4.2 Investor Rights and Protections
    An in-depth look at the rights and protections afforded to investors in public companies, including voting rights and access to information.
• 11.5 Takeover Bids and Insider Trading
  • 11.5.1 Takeover Bids
    Exploring the dynamics of takeover bids, including types of bids and the regulatory environment.
  • 11.5.2 Insider Trading Regulations
    Understanding the legal boundaries and consequences of insider trading in the Canadian financial market, focusing on regulations, enforcement, and penalties.