會(huì)計(jì)英文教材第一集課件

INTERMEDIATEACCOUNTING6thEDITIONLannyG.ChasteenRichardE.FlahertyMelvinC.O’Connor1INTERMEDIATEACCOUNTING6thEDIFINANCIALREPORTING2FINANCIALREPORTING2LearningObjectivesDescribethepurposeoffinancialreportingandidentifytheprimaryfinancialstatements.ExplainthefunctionofaccountingstandardsanddescribetheroleoftheFASBinsettingthesestandardsintheUnitedStates.RecognizetheimportancetofinancialreportingoftheSEC,AICPA,AAA,andIRS.3LearningObjectivesDescribethLearningObjectivesRealizethegrowingimportanceandrelevanceofinternationalaccountingissuestothepracticeofaccountingintheUnitedStatesandunderstandtheroleoftheIASCininternationalaccountingstandardsetting.UnderstandthesignificanceoftheFASB’sconceptualframeworkinoutliningthequalitiesofgoodaccountinginformation,definingtermssuchasassetandrevenue,andprovidingguidanceaboutappropriaterecognition,measurement,andreporting.4LearningObjectivesRealizetheLearningObjectivesIdentifycareeropportunitiesrelatedtoaccountingandfinancialreportinginthefieldsofpublicaccounting,corporateaccounting,financialanalysis,banking,andconsulting.5LearningObjectivesIdentifycaDefinitionforAccounting“Accountingisaserviceactivity.Itsfunctionistoprovidequantitativeinformation,primarilyfinancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomicdecisions--inmakingreasonedchoicesamongalternativecoursesofaction.”(APB4.40).6DefinitionforAccounting“AccoAccountingprovidesavitalserviceintoday’sbusinessenvironment.Accountingisconcernedprimarilywithquantitativefinancialinformationthatisusedinconjunctionwithqualitativeevaluationsinmakingjudgments.DefinitionforAccountingKeyfeaturesofthisdefinition:7AccountingprovidesavitalseAccountinginformationisusedinmakingdecisionsabouthowtoallocatescarceresources.Althoughaccountantsplacemuchemphasisonreportingwhathasalreadyoccurred,thispastinformationisintendedtobeusefulinmakingeconomicdecisionsaboutthefuture.DefinitionforAccountingKeyfeaturesofthisdefinition:8AccountinginformationisusedUsersofAccountingInformationAllpartiesinterestedinthefinancialhealthofacompanyarecalledstakeholders.9UsersofAccountingInformatioUsersofAccountingInformationInternalusers,whomakedecisionsdirectlyaffectingtheinternaloperationsoftheenterprise.Externalusers,whomakedecisionsconcerningtheirrelationshiptotheenterprise.Twomajorclassificationsofstakeholders10UsersofAccountingInformatioInvestorsCommunityBoardofDirectorsManagementEmployeesSuppliersEmployeesCreditorsCustomersAnalystsGovernmentMajorInternalandExternalStakeholderGroups11InvestorsCommunityBoardofDirFinancialReportingThebalancesheetreports,asofacertainpointintime,theresourcesofacompany(theassets),thecompany’sobligations(theliabilities),andtheequityoftheowners.Theincomestatementreports,foracertaininterval,thenetassetsgeneratedthroughbusinessoperations(revenues),thenetassetsconsumed(theexpenses),andthenetincome.Thestatementofcashflowsreports,foracertaininterval,theamountofcashgeneratedandconsumedbyacompanythroughoperating,financing,andinvestingactivities.12FinancialReportingThebalanceAccountingestimatesandjudgmentsareoutlinedinthenotestofinancialstatements.FinancialReporting13AccountingestimatesandjudgmFinancialStatementRelationshipsBalanceSheet12/31/X0Cash $80,000Other 4,550,000Total $4,630,000Liabilities$2,970,000Stock900,000R/E760,000Total$4,630,000StatementofCashFlowsCashFromOp$973,000CashFromInv(1,188,000)CashFromFin245,000NetIncrease$30,000Beg.Cash80,000End.Cash$110,000StatementofRetainedEarningsR/E12/31/X0$760,000NetIncome864,600Dividends(400,000)R/E12/31/X1$1,224,600Revenues $12,443,000Expenses11,578,400NetIncome$864,600IncomeStatementCash $110,000Other 4,975,000Total $5,085,000Liabilities$2,860,400Stock1,000,000R/E1,224,600Total$5,085,000BalanceSheet12/31/X114FinancialStatementRelationshRelativeFrequencyof

AuditOpinions(1998)CompaniesUnqualified 5,978UnqualifiedWithExplanatoryLanguage 1,030Qualified 6Noopinion 2Adverse 0Total 7,01615RelativeFrequencyof

AuditOAccountingStandard-SettingOrganizationsFASACFASBFAFSECAcSECAICPAIASCIAPCOtherEITFGASACGASBU.S.Gov't16AccountingStandard-SettingOrSecuritiesandExchangeCommission(1934-present)1929stockmarketcrashblamedonnonstandardaccounting.1934SecuritiesActestablishedSECtostandardizeaccounting.Createdtoprotecttheinterestsofinvestorsbyensuringfullandfairdisclosure.GrantedlegalauthoritytodictateGAAP.HastendedtodefersettingGAAPtotheaccountingprofession.17SecuritiesandExchangeCommisU.S.AccountingStandard-SettingBodiesCommitteeonAccountingProcedures(CAP)Born: 1939Died: 1959Pronouncements:AccountingResearchBulletins18U.S.AccountingStandard-SettU.S.AccountingStandard-SettingBodiesAccountingPrinciplesBoard(APB)Born: 1959Died: 1973Pronouncements:APBOpinions19U.S.AccountingStandard-SettU.S.AccountingStandardsSettingBodiesFinancialAccountingStandardsBoard(FASB)Born: 1973Died: Pronouncements:StatementsofFinancialAccountingStandards20U.S.AccountingStandardsSettFASACFASBFAFSECAcSECAICPAIASCIAPCOtherEITFGASACGASBU.S.Gov'tAccountingStandard-SettingOrganizations21FASACFASBFAFSECAcSECAICPAIASCIFinancialAccounting

StandardsBoard(1973-present)Sevenfull-timememberscomprisethisindependentbody.IssuesStatementsofFinancialAccountingStandards.DeterminesGAAPby“dueprocess.”Workswithinthe

conceptualframework.22FinancialAccounting

StandardsStatementPreparers

FinancialExecutivesInstitute

IMA

IndividualCorpsFASBFASBAuthoritySources--OverviewGov’tRegulators

SEC

StateBoardsofPublicAcct.

AmericanAcct.InstructorsAssociationAuditors

AICPA

StatesocietiesofCPAs

Majorauditfirms2323StatementPreparersFinancialMaintainspowertoregulateregistrantcompanies.CongressFASBAuthoritySources--SECSECFASBRegistrantCompanies24MaintainspowertoregulatereFASBAuthoritySources--AICPAProvidesauthoritytotheFASBthroughitsCodeofProfessionalConductRule203.AICPAmembersmustshowthatclientfinancialstatementscomplywithFASBpronouncements(GAAP).AICPAgrantscontinuingmembershiptoitsmemberswhocomplywithRule203.25FASBAuthoritySources--AICPAAICPAFASBMembersoftheAICPAEndorsementofFASBthroughRule203GAAPContinuingMembershipFASBAuthoritySources--AICPA26AICPAFASBMembersoftheAICPAEFASB“DueProcess”Topicorprojectaddedtoagenda.Taskforceassembledtostudytopic.ResearchandanalysisperformedbyFASBtechnicalstaff.DiscussionMemorandumdraftedandreleased.Publichearing,usually60dayslater,isheld.27FASB“DueProcess”TopicorproBoardanalyzesandevaluatespublicresponse.ExposureDraftpreparedandreleased.Sixty-dayexposureperiodallowsforpubliccomment.Committeestudiespublicresponsetoexposuredraftandpreparesfinaldraft.Boardvotesonfinaldraft(5-2marginrequiredforpassage).FASB“DueProcess”28BoardanalyzesandevaluatespSECAuthoritativeLiteratureFinancialReportingReleasesStaffAccountingBulletinsAccountingandAuditingEnforcementReleasesAccountingSeriesReleases29SECAuthoritativeLiteratureFiWhatisGAAP?LevelAFASBStatementsandInterpretationsAPBOpinionsCAPAccountingResearchBulletinsLevelBFASBTechnicalBulletinsAICPAIndustryAuditandAccountingGuidesAICPAStatementsofPositionLevelCConsensusPositionsofEITFAICPAPracticeBulletinsLevelDAICPAAccountingInterpretationsFASB“QuestionandAnswer”guidesOtherwidelyrecognizedindustrypractices30WhatisGAAP?LevelALevelC30InternationalAccountingStandardsCommitteeTheInternationalAccountingStandardsCommittee(ISAC)wasformedin1973todevelopworldwideaccountingstandards.TheaccountingstandardsproducedbytheInternationalAccountingStandardsCommitteearereferredtoasInternationalAccountingStandards(IASs).31InternationalAccountingStandConceptualFrameworkOverviewObjectivesofFinancialReportingQualitativeCharacteristicsofInformationAccountingElementsofFinancialStatements

RecognitionandMeasurementConceptsAssumptionsPrinciplesConstraints32ConceptualFrameworkOverviewOObjectivesofFinancialReportingUsefulness.Understandability.Targetaudience:investorsandcreditors.Assessingfuturecashflows.Evaluatingeconomicresources.Primaryfocusonearnings.33ObjectivesofFinancialReportObjectivesofFinancialReportingUsefulnessFinancialreportingshouldprovideinformationthatisusefultopresentandpotentialinvestorsandcreditorsandotherusersinmakingrationalinvestment,credit,andsimilardecisions.34ObjectivesofFinancialReportObjectivesofFinancialReportingUnderstandabilityFinancialreportingshouldprovideinformationthatisunderstandabletoonewhohasareasonableknowledgeofaccountingandbusinessandwhoiswillingtostudyandanalyzetheinformationpresented.35ObjectivesofFinancialReportObjectivesofFinancialReportingTargetAudienceWhiletherearemanypotentialusersoffinancialreports,theobjectivesaredirectedprimarilytowardinvestorsandcreditors.36ObjectivesofFinancialReportObjectivesofFinancialReportingAssessingFutureCashFlowsFinancialreportingshouldprovideinformationthatisusefulinassessingamounts,timing,anduncertainty(risk)ofprospectivecashflows.37ObjectivesofFinancialReportObjectivesofFinancialReportingEvaluatingEconomicResourcesFinancialreportingshouldalsoprovideinformationaboutanenterprise’sassets,liabilities,andowners’equitytohelpinvestors,creditors,andothersevaluatethefinancialstrengthsandweaknessesoftheenterpriseanditsliquidityandsolvency.38ObjectivesofFinancialReportObjectivesofFinancialReportingPrimaryFocusonEarningsInformationaboutenterpriseearnings,measuredbyaccrualaccounting,generallyprovidesabetterbasisforforecastingfutureperformancethandoesinformationaboutcurrentcashreceiptsanddisbursements.39ObjectivesofFinancialReportQualitativeCharacteristicsofAccountingInformationPrimaryQualitiesA.Relevance1.PredictiveValue2.FeedbackValue3.TimelinessB.Reliability

1.Verifiability2.RepresentationalFaithfulness3.Neutrality

SecondaryQualitiesA.ComparabilityB.Consistency40QualitativeCharacteristicsofComparabilityConsistencyPredictiveValueFeedbackValueTimelinessRelevanceVerifiabilityNeutralityRepresentationalFaithfulnessReliabilityDecisionUsefulnessUnderstandabilityDecisionMakersQualitativeCharacteristicsofAccountingInformationBenefits>CostMateriality41ComparabilityConsistencyPredicWhatAboutConservatism?Theconceptofconservatismcanbesummarizedasfollows:Whenindoubt,recognizealllossesbutdon’trecognizeanygains.42WhatAboutConservatism?ThecoElementsofFinancialStatements

AssetsLiabilitiesEquityInvestmentDistributionComprehensiveIncomeRevenuesExpensesGainsLosses43ElementsofFinancialStatemenRecognitionand

MeasurementConceptsAssumptionsPrinciplesConstraintsEconomicEntityGoingConcernArm’s-LengthTransactionsMonetaryUnitPeriodicityHistoricalCostRevenueRecognitionMatchingFullDisclosureCost-BenefitMaterialityIndustryPracticeConservatism44Recognitionand

MeasurementCoFinancialStatementsv.

FinancialReportingA“fullsetoffinancialstatements”isnecessarytomeettheobjectivesoffinancialreporting.Includedintherecommendedsetofgeneral-purposefinancialstatementsarereportsthatshow:Financialpositionattheendoftheperiod.Earnings(netincome)fortheperiod.Cashflowsduringtheperiod.Investmentsbyanddistributionstoownersduringtheperiod.Comprehensiveincomefortheperiod.45FinancialStatementsv.

FinancTraditionalAssumptionsoftheAccountingModelEconomicentity.Goingconcern.Arm’s-lengthtransactions.Stablemonetaryunit.Accountingperiod.46TraditionalAssumptionsoftheCareersinFinancialAccountingPublicaccounting.Companyaccounting.User(analyst,banker,consultant).47CareersinFinancialAccountinTheEnd48TheEnd48INTERMEDIATEACCOUNTING6thEDITIONLannyG.ChasteenRichardE.FlahertyMelvinC.O’Connor49INTERMEDIATEACCOUNTING6thEDIFINANCIALREPORTING50FINANCIALREPORTING2LearningObjectivesDescribethepurposeoffinancialreportingandidentifytheprimaryfinancialstatements.ExplainthefunctionofaccountingstandardsanddescribetheroleoftheFASBinsettingthesestandardsintheUnitedStates.RecognizetheimportancetofinancialreportingoftheSEC,AICPA,AAA,andIRS.51LearningObjectivesDescribethLearningObjectivesRealizethegrowingimportanceandrelevanceofinternationalaccountingissuestothepracticeofaccountingintheUnitedStatesandunderstandtheroleoftheIASCininternationalaccountingstandardsetting.UnderstandthesignificanceoftheFASB’sconceptualframeworkinoutliningthequalitiesofgoodaccountinginformation,definingtermssuchasassetandrevenue,andprovidingguidanceaboutappropriaterecognition,measurement,andreporting.52LearningObjectivesRealizetheLearningObjectivesIdentifycareeropportunitiesrelatedtoaccountingandfinancialreportinginthefieldsofpublicaccounting,corporateaccounting,financialanalysis,banking,andconsulting.53LearningObjectivesIdentifycaDefinitionforAccounting“Accountingisaserviceactivity.Itsfunctionistoprovidequantitativeinformation,primarilyfinancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomicdecisions--inmakingreasonedchoicesamongalternativecoursesofaction.”(APB4.40).54DefinitionforAccounting“AccoAccountingprovidesavitalserviceintoday’sbusinessenvironment.Accountingisconcernedprimarilywithquantitativefinancialinformationthatisusedinconjunctionwithqualitativeevaluationsinmakingjudgments.DefinitionforAccountingKeyfeaturesofthisdefinition:55AccountingprovidesavitalseAccountinginformationisusedinmakingdecisionsabouthowtoallocatescarceresources.Althoughaccountantsplacemuchemphasisonreportingwhathasalreadyoccurred,thispastinformationisintendedtobeusefulinmakingeconomicdecisionsaboutthefuture.DefinitionforAccountingKeyfeaturesofthisdefinition:56AccountinginformationisusedUsersofAccountingInformationAllpartiesinterestedinthefinancialhealthofacompanyarecalledstakeholders.57UsersofAccountingInformatioUsersofAccountingInformationInternalusers,whomakedecisionsdirectlyaffectingtheinternaloperationsoftheenterprise.Externalusers,whomakedecisionsconcerningtheirrelationshiptotheenterprise.Twomajorclassificationsofstakeholders58UsersofAccountingInformatioInvestorsCommunityBoardofDirectorsManagementEmployeesSuppliersEmployeesCreditorsCustomersAnalystsGovernmentMajorInternalandExternalStakeholderGroups59InvestorsCommunityBoardofDirFinancialReportingThebalancesheetreports,asofacertainpointintime,theresourcesofacompany(theassets),thecompany’sobligations(theliabilities),andtheequityoftheowners.Theincomestatementreports,foracertaininterval,thenetassetsgeneratedthroughbusinessoperations(revenues),thenetassetsconsumed(theexpenses),andthenetincome.Thestatementofcashflowsreports,foracertaininterval,theamountofcashgeneratedandconsumedbyacompanythroughoperating,financing,andinvestingactivities.60FinancialReportingThebalanceAccountingestimatesandjudgmentsareoutlinedinthenotestofinancialstatements.FinancialReporting61AccountingestimatesandjudgmFinancialStatementRelationshipsBalanceSheet12/31/X0Cash $80,000Other 4,550,000Total $4,630,000Liabilities$2,970,000Stock900,000R/E760,000Total$4,630,000StatementofCashFlowsCashFromOp$973,000CashFromInv(1,188,000)CashFromFin245,000NetIncrease$30,000Beg.Cash80,000End.Cash$110,000StatementofRetainedEarningsR/E12/31/X0$760,000NetIncome864,600Dividends(400,000)R/E12/31/X1$1,224,600Revenues $12,443,000Expenses11,578,400NetIncome$864,600IncomeStatementCash $110,000Other 4,975,000Total $5,085,000Liabilities$2,860,400Stock1,000,000R/E1,224,600Total$5,085,000BalanceSheet12/31/X162FinancialStatementRelationshRelativeFrequencyof

AuditOpinions(1998)CompaniesUnqualified 5,978UnqualifiedWithExplanatoryLanguage 1,030Qualified 6Noopinion 2Adverse 0Total 7,01663RelativeFrequencyof

AuditOAccountingStandard-SettingOrganizationsFASACFASBFAFSECAcSECAICPAIASCIAPCOtherEITFGASACGASBU.S.Gov't64AccountingStandard-SettingOrSecuritiesandExchangeCommission(1934-present)1929stockmarketcrashblamedonnonstandardaccounting.1934SecuritiesActestablishedSECtostandardizeaccounting.Createdtoprotecttheinterestsofinvestorsbyensuringfullandfairdisclosure.GrantedlegalauthoritytodictateGAAP.HastendedtodefersettingGAAPtotheaccountingprofession.65SecuritiesandExchangeCommisU.S.AccountingStandard-SettingBodiesCommitteeonAccountingProcedures(CAP)Born: 1939Died: 1959Pronouncements:AccountingResearchBulletins66U.S.AccountingStandard-SettU.S.AccountingStandard-SettingBodiesAccountingPrinciplesBoard(APB)Born: 1959Died: 1973Pronouncements:APBOpinions67U.S.AccountingStandard-SettU.S.AccountingStandardsSettingBodiesFinancialAccountingStandardsBoard(FASB)Born: 1973Died: Pronouncements:StatementsofFinancialAccountingStandards68U.S.AccountingStandardsSettFASACFASBFAFSECAcSECAICPAIASCIAPCOtherEITFGASACGASBU.S.Gov'tAccountingStandard-SettingOrganizations69FASACFASBFAFSECAcSECAICPAIASCIFinancialAccounting

StandardsBoard(1973-present)Sevenfull-timememberscomprisethisindependentbody.IssuesStatementsofFinancialAccountingStandards.DeterminesGAAPby“dueprocess.”Workswithinthe

conceptualframework.70FinancialAccounting

StandardsStatementPreparers

FinancialExecutivesInstitute

IMA

IndividualCorpsFASBFASBAuthoritySources--OverviewGov’tRegulators

SEC

StateBoardsofPublicAcct.

AmericanAcct.InstructorsAssociationAuditors

AICPA

StatesocietiesofCPAs

Majorauditfirms7171StatementPreparersFinancialMaintainspowertoregulateregistrantcompanies.CongressFASBAuthoritySources--SECSECFASBRegistrantCompanies72MaintainspowertoregulatereFASBAuthoritySources--AICPAProvidesauthoritytotheFASBthroughitsCodeofProfessionalConductRule203.AICPAmembersmustshowthatclientfinancialstatementscomplywithFASBpronouncements(GAAP).AICPAgrantscontinuingmembershiptoitsmemberswhocomplywithRule203.73FASBAuthoritySources--AICPAAICPAFASBMembersoftheAICPAEndorsementofFASBthroughRule203GAAPContinuingMembershipFASBAuthoritySources--AICPA74AICPAFASBMembersoftheAICPAEFASB“DueProcess”Topicorprojectaddedtoagenda.Taskforceassembledtostudytopic.ResearchandanalysisperformedbyFASBtechnicalstaff.DiscussionMemorandumdraftedandreleased.Publichearing,usually60dayslater,isheld.75FASB“DueProcess”TopicorproBoardanalyzesandevaluatespublicresponse.ExposureDraftpreparedandreleased.Sixty-dayexposureperiodallowsforpubliccomment.Committeestudiespublicresponsetoexposuredraftandpreparesfinaldraft.Boardvotesonfinaldraft(5-2marginrequiredforpassage).FASB“DueProcess”76BoardanalyzesandevaluatespSECAuthoritativeLiteratureFinancialReportingReleasesStaffAccountingBulletinsAccountingandAuditingEnforcementReleasesAccountingSeriesReleases77SECAuthoritativeLiteratureFiWhatisGAAP?LevelAFASBStatementsandInterpretationsAPBOpinionsCAPAccountingResearchBulletinsLevelBFASBTechnicalBulletinsAICPAIndustryAuditandAccountingGuidesAICPAStatementsofPositionLevelCConsensusPositionsofEITFAICPAPracticeBulletinsLevelDAICPAAccountingInterpretationsFASB“QuestionandAnswer”guidesOtherwidelyrecognizedindustrypractices78WhatisGAAP?LevelALevelC30InternationalAccountingStandardsCommitteeTheInternationalAccountingStandardsCommittee(ISAC)wasformedin1973todevelopworldwideaccountingstandards.TheaccountingstandardsproducedbytheInternationalAccountingStandardsCommitteearereferredtoasInternationalAccountingStandards(IASs).79InternationalAccountingStandConceptualFrameworkOverviewObjectivesofFinancialReportingQualitativeCharacteristicsofInformationAccountingElementsofFinancialStatements

RecognitionandMeasurementConceptsAssumptionsPrinciplesConstraints80ConceptualFrameworkOverviewOObjectivesofFinancialReportingUsefulness.Understandability.Targetaudience:investorsandcreditors.Assessingfuturecashflows.Evaluatingeconomicresources.Primaryfocusonearnings.81ObjectivesofFinancialReportObjectivesofFinancialReportingUsefulnessFinancialreportingshouldprovideinformationthatisusefultopresentandpotentialinvestorsandcreditorsandotherusersinmakingrationalinvestment,credit,andsimilardecisions.82ObjectivesofFinancialReportObjectivesofFinancialReportingUnderstandabilityFinancialreportingshouldprovideinformationthatisunderstandabletoonewhohasareasonableknowledgeofaccountingandbusinessandwhoiswillingtostudyandanalyzetheinformationpresented.83ObjectivesofFinancialReportObjectivesofFinancialReportingTargetAudienceWhiletherearemanypotentialusersoffinancialreports,theobjectivesaredirectedprimarilytowardinvestorsandcreditors.84ObjectivesofFinancialReportObjectivesofFinancialReportingAssessingFutureCashFlowsFinancialreportingshouldprovideinformationthatisusefulinassessingamounts,timing,anduncertainty(risk)ofprospectivecashflows.85ObjectivesofFinancialReportObjectivesofFinancialReportingEvaluatingEconomicResourcesFinancialreportingshouldalsoprovideinformationaboutanenterprise’sassets,liabilities,andowners’equitytohelpinvestors,creditors,andotherse