会计专业英语-2011.ppt

Accounting English,Study Materials 1. The Conceptual Framework for Financial Reporting 2. Materials drawn from BHP BILLITON ANNUAL REPORT 2010 Study objectives Identify key words in accounting theory Understand the fundamental concept in accounting Understand the content of financial report of a listed company Yang Morong e-mail: ,Key words in accounting,1. accounting to account: to think of sb/sth as sth to account for sth: to be the explanation of sth (in monetary term) 2. account n An account is a place where all the information referring to a particular asset or liability, or to capital is entered (Frank Wood and Alan Sangster). control account (总账账户）subsidiary account（明细账户） ledger (账本）， general ledger, sales ledger（应收账款分类账本）, purchase ledger （应付账款分类账本）, cash book（现金、银行存款账本） journal（日记账），general journal, sales journal, purchase journal a journal entry (会计分录、会计凭证） to make a journal entry to record a transaction,Financial and Management Accounting,Accounting: is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information. (AAAAmerican Accounting Association) Financial accounting: communicating information to outsiders mainly for them to make investment decision. Management accounting: communicating information to management for improving the efficiency and effectiveness of existing operations.,Accounting: is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information. (AAAAmerican Accounting Association) 会计是一个确认、计量、和传递经济信息，以使信息使用者能够做出专业判断和决策的过程。 会计是一个确认、计量、和传递经济信息的过程，其目的是使（帮助）信息使用者能够做出专业的判断和决策。,Key words,to deliver: 1. 运送、投递； 2. to give a lecture, a speech or any other formal spoken statement; 3. to deliver (sth/on sth) to give what is expected or promised. If you cant deliver improved sales figures, youre fired. informed: having or showing relevant knowledge be well informed; an informed choice/debate/decision entity: a thing with distinct and independent existence a separate accounting/legal/political entity generally accepted accounting practices (GAAP)： 通用会计规则,sound: adj. 1. in good condition; not hurt, diseased, injured or damaged a sound constitution; of sound mind; Is companys finance sound? We arrived home safe and sound. 2. based on reason, sense or judgment; reliable a sound argument/investment 3. full and complete; thorough a sound knowledge/understanding of sth He has a sound grasp of the issues. 4. good and accurate, but not excellent; competent a very sound tennis player, a sound piece of writing equity: 1. the book value of shares issued by a company; 所有者权益 2. equities: ordinary shares or stocks 3. the application of the principles of natural justice in particular circumstances where the existing laws would not allow a fair or reasonable result（衡平法）,2. Financial Reporting (FR),What is financial reporting? Financial reporting is a way of recording, analyzing and summarizing financial data. Financial statements are prepared and presented for external users by many entities around the world.,The Conceptual Framework for Financial Reporting,Scope of CFFR（财务报告概念框架） The Conceptual Framework deals with: (a) the objective of financial reporting; (b) the qualitative characteristics of useful financial information; (c) the definition, recognition and measurement of the elements from which financial statements are constructed; and 构成财务报表要素的定义、确认、计量（问题） (d) concepts of capital and capital maintenance. （资本和资本保全的概念）,Phase A: Objectives and qualitative characteristics,On the 28 September 2010 the IASB and the FASB announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (GAAP). The objective of the conceptual framework project is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. The new framework builds on existing IASB and FASB frameworks. The IASB has revised（修订） portions of its framework; while the FASB has issued Concepts Statement 8 to replace Concepts Statements 1 and 2.,Chapter 1: The Objective of Financial Reporting -Decision usefulness role of accounting information,The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. Those decisions involve buying, selling or holding equity and debt instruments, and providing or settling loans and other forms of credit. General purpose financial reporting is directed at users who provide resources to an entity but lack the ability to compel the entity to provide them with the information they need to be able to make decisions.,Key words,to settle: 1. to settle sth (with sb): to reach an agreement about sth; to end an argument or find a solution to a disagreement 2. to decide or arrange sth finally Everythings settled. 3. to settle (up) (with sb): to pay what is owed, a bill, etc. Have you settled (up) with her for the picture she sold you? equity instruments: 权益工具 debt instruments: 债权工具 return: 回报（率），报酬（率）return on equity (ROE)权益报酬率，净资产收益率 return on assets (ROA) 资产报酬率,principal and interest payments：本金和利息的偿付 to assess the prospects for：评估的前景（可能性） the resources of the entity: 企业（拥有）的资源 claims against the entity：向企业主张的权利 to discharge their responsibilities：履行他们的职责 to comply with applicable laws, regulations and contractual provisions: 遵守相关的法律、规定、和合同条款 applicable (to sb/sth): relevant, appropriate or suitable steward: a person employed to manage anothers property, esp. a large house or land. stewardship: 受托责任,provision: 1. the giving or lending of sth to sb The government is responsible for the provision of health care. 2. a condition or requirement in a legal document under the provisions of the agreement: 依照协议规定 She accepted the contract with the provision that it would be revised after a year. provisional: 临时的、暂时性的,Decisions Explained,Decisions by existing and potential investors about buying, selling or holding equity and debt instruments depend on the returns that they expect from an investment in those instruments, for example dividends, principal and interest payments or market price increases. Consequently, existing and potential investors, lenders and other creditors need information to help them assess the prospects for future net cash inflows to an entity（评估企业未来净现金流量）.,Stewardship role added,To assess an entitys prospects for future net cash inflows, existing and potential investors, lenders and other creditors need information about the resources of the entity, claims against the entity, and how efficiently and effectively the entitys management and governing board have discharged their responsibilities to use the entitys resources.,Stewardship role explained,Examples of such responsibilities include protecting the entitys resources from unfavourable effects of economic factors such as price and technological changes and ensuring that the entity complies with applicable laws, regulations and contractual provisions. Information about managements discharge of its responsibilities is also useful for decisions by existing investors, lenders and other creditors who have the right to vote on or otherwise influence managements actions.,The Importance of Setting an Objective,The objective of general purpose financial reporting forms the foundation of the Conceptual Framework. Other aspects of the Conceptual Framework (a) a reporting entity concept, (b) the qualitative characteristics of, and the constraint on, useful financial information, (c) elements of financial statements, (d) recognition, measurement, presentation and disclosure flow logically from the objective.,The primary users of FR,Many existing and potential investors, lenders and other creditors cannot require reporting entities to provide information directly to them and must rely on general purpose financial reports for much of the financial information they need. Consequently, they are the primary users to whom general purpose financial reports are directed. The management of a reporting entity is also interested in financial information about the entity. However, management need not rely on general purpose financial reports because it is able to obtain the financial information it needs internally.,The Information FR Provides -Balance Sheets Are the Focus,General purpose financial reports provide information about the financial position of a reporting entity, which is information about the entitys economic resources and the claims against the reporting entity. Financial reports also provide information about the effects of transactions and other events that change a reporting entitys economic resources and claims. Both types of information provide useful input for decisions about providing resources to an entity. 这二类信息都为向企业提供资源的决策提供了有用的参考。,financial strengths and weaknesses 财务优势和劣势 liquidity and solvency 流动性和偿债能力 liquid; solvent liquidity: the state of owning things of value that can easily be changed into cash solvent: having enough money to pay ones debts. a solvent company financing: 筹资 financial performance 财务结果（业绩） to make efficient and effective use of the reporting entitys resources. 高效率地并富有成效地使用报告主体的资源,Economic resources and claims,Information about the nature and amounts of a reporting entitys economic resources and claims can help users to identify the reporting entitys financial strengths and weaknesses. That information can help users to assess the reporting entitys liquidity and solvency, its needs for additional financing and how successful it is likely to be in obtaining that financing. Information about priorities and payment requirements of existing claims helps users to predict how future cash flows will be distributed among those with a claim against the reporting entity.,Changes in economic resources and claims,Changes in a reporting entitys economic resources and claims result from that entitys financial performance and from other events or transactions such as issuing debt or equity instruments. To properly assess the prospects for future cash flows from the reporting entity, users need to be able to distinguish between both of these changes.,Income Statement Information Explained,Information about a reporting entitys financial performance helps users to understand the return that the entity has produced on its economic resources. Information about the return the entity has produced provides an indication of how well management has discharged its responsibilities to make efficient and effective use of the reporting entitys resources. Information about the variability and components of that return is also important, especially in assessing the uncertainty of future cash flows.,The Contents of Financial Reporting,Financial reports provide information about the reporting entitys economic resources, claims against the reporting entity and the effects of transactions and other events and conditions that change those resources and claims. Some financial reports also include explanatory material about managements expectations and strategies for the reporting entity, and other types of forward-looking information.,CHAPTER 3: QUALITATIVE CHARACTERISTICS OF USEFUL FINANCIAL INFORMATION,CHAPTER 2: THE REPORTING ENTITY to be added Fundamental qualitative characteristics Relevance 相关性 Materiality 重要性 Faithful representation 真实反映 Enhancing qualitative characteristics Comparability 可比性 Verifiability 可验证性 Timeliness 及时性 Understandability 可理解性,The qualitative characteristics is directed at the usefulness of financial information,The qualitative characteristics of useful financial information discussed in this chapter identify the types of information that are likely to be most useful to the existing and potential investors, lenders and other creditors for making decisions about the reporting entity on the basis of information in its financial report (financial information).,Fundamental qualitative characteristics,The fundamental qualitative characteristics are relevance（相关性） and faithful representation（真实反映） Relevance Relevant financial information is capable of making a difference in the decisions made by users. Information may be capable of making a difference in a decision even if some users choose not to take advantage of it or are already aware of it from other sources. Financial information is capable of making a difference in decisions if it has predictive value, confirmatory value or both.,Faithful representation,Faithful representation Financial reports represent economic phenomena in words and numbers. To be useful, financial information must not only represent relevant phenomena, but it must also faithfully represent the phenomena that it purports to represent. To be a perfectly faithful representation, a depiction would have three characteristics. It would be complete（完整） neutral （中立） and free from error（无差错）,Faithful representation explained,Faithful representation does not mean accurate in all respects. Free from error means there are no errors or omissions in the description of the phenomenon, and the process used to produce the reported information has been selected and applied with no errors in the process. In this context, free from error does not mean perfectly accurate in all respects.,Materiality（重要性）,Information is material if omitting it or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity. In other words, materiality is an entity-specific aspect of relevance based on the nature or magnitude, or both, of the items to which the information relates in the context of an individual entitys financial report. Consequently, the Board cannot specify a uniform quantitative threshold for materiality or predetermine what could be material in a particular situation.,Enhancing qualitative characteristics,Comparability, verifiability, timeliness and understandability are qualitative characteristics that enhance the usefulness of information that is relevant and faithfully represented. The enhancing qualitative characteristics may also help determine which of two ways should be used to depict a phenomenon if both are considered equally relevant and faithfully represented. CHAPTER 4: THE 1989 FRAMEWORK: THE REMAINING TEXT,Underlying assumption: Going concern （持续经营假设）,The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for the foreseeable future. Hence, it is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations; if such an intention or need exists, the financial statements may have to be prepared on a different basis and, if so, the basis used is disclosed. liquidate: 1, to close down a business and use any money thus made to pay its debts. 2. to pay of settle a debt,The elements of financial statements,Financial statements portray the financial effects of transactions and other events by grouping them into broad classes according to their economic characteristics. These broad classes are termed the elements of financial statements.,The elements directly related to the measurement of financial position in the balance sheet are assets, （资产） liabilities （负债） and equity. （所有者权益） The elements directly related to the measurement of performance in the income statement are income （收益） and expenses.（费用）,Definition of financial elements,(a) An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. (b) A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.,(c) Equity is the residual interest in the assets of the entity after deducting all its liabilities. interest: 1, advantage, benefit. to decide what is in the best interest of the shareholders. It would be in your interest to go. 2, interest in sth. a legal right in a company. to have controlling interest in the company.,Performance,Profit is frequently used as a measure of performance or as the basis for other measures, such as return on investment or earnings per share. The elements directly related to the measurement of profit are income and expenses.,Income and Expenses,(a) Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. (b) Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.,The distinction of income and expense items,Income and expenses may be presented in the income statement in different ways so as to provide information that is relevant for economic decision-making. For example, it is common practice to distinguish between those items of income and expenses that arise in the course of the ordinary activities of the entity and those that do not. This distinction is made on the basis that the source of an item is relevant in evaluating the ability of the entity to generate cash and cash equivalents in the future; for example, incidental activities such as the disposal of a l