西方财务会计 (2).ppt

西方财务会计,WESTERNFINANCIALACCOUNTING,Chapter1TheFinancialAccountingConceptualFrameworkAndTheAccountingEquation,1.1ACCOUNTING,Aserviceactivity-ProvideusefulinformationabouteconomicentitiestointerestedpartiesAndameasurement-communicationactivity-Theusefulnessofaccountinginformationdependsoneffectivemeasurementoftheeconomicactivitiesandeffectivecommunicationofthosemeasurementstousersofthatinformation.,Accountinginformationanddecisionmakers,Accountinginformation,Financialaccounting,ManagementAccounting,ExternalDecisionmakers,InternalDecisionmakers,1.2COMPARISONBETWEENFINANCIALANDMANAGEMENTACCOUNTING,ManagementAccounting-Theprocessofdevelopingandreportingaccountinginformationforinternaluserswhohavedirectaccesstotheinformationpreparing.,1.2COMPARISONBETWEENFINANCIALANDMANAGEMENTACCOUNTING,FinancialAccounting-TheprocessofdevelopingandreportingfinancialinformationforexternaluserswhodonothavedirectaccesstotheinformationpreparingwhichshouldbeinaccordancewithGeneralAcceptedAccountingPrinciples(GAAP).,GAAP,Generallyacceptedaccountingprinciplesarethemeasurementrulesusedtodeveloptheinformationinfinancialstatement.Theyarethoseguidelineswhichindicatehowtoreporteconomicevents.Theyconsistofanumberofconcepts,principlesandprocedures.,GenerallyAcceptedAccountingPrinciples,TheSecuritiesandExchangeCommission(SEC)hastheauthoritytodeterminethefinancialstatementstobeprovidedtostockholdersandthemeasurementrulesappliedinproducingthestatements.TheFinancialAccountingStandardsBoard(FASB)iscurrentlyrecognizedasthegroupresponsibleforestablishingGAAP.,TheConceptualFramework,TheFinancialAccountingStandardsBoard(FASB)issuesStatementsofFinancialAccountingConcepts.Thesestatementsconstitutetheconceptualframeworkofaccounting.,1.3THEFASBSFINANCIALACCOUNTINGCONCEPTUALFRAMEWORK,1.3-1ObjectivesoftheConceptualFrameworkTheFrameworkistobethefoundationforbuildingasetofcoherentaccountingstandardsandrules.TheFrameworkistobeareferenceofbasicaccountingtheoryforsolvingemergingpracticalproblemsofreporting.,1.3-2OverviewoftheConceptualFramework-ThreelevelsofobjectiveselementsandprinciplesThefirstlevelconsistsofobjectives.Thesecondlevelexplainsfinancialelementsandcharacteristicsofinformation.Thethirdlevelincorporatesrecognitionandmeasurementcriteria.,LevelI.BasicObjectivesofFinancialReportingToprovideinformation:abouteconomicresources,theclaimsonthoseresourcesandchangesinthemthatisusefultothosemakinginvestmentandcreditdecisions,suchaspresentandfutureinvestors,creditorsinassessingfuturecashflows;Andtoindividualswhoreasonablyunderstandbusinessandeconomicactivities.,LevelII.BasicElementsAndQualitativeCharacteristicsofAccountinginformation,Liabilities:ProbablefuturesacrificesofeconomicbenefitsEquity:ResidualorownershipinterestInvestmentbyOwners:IncreasesinnetassetsDistributionstoOwners:DecreasesinnetassetsComprehensiveIncome:Changesinequityfromnon-ownersources,Revenues:InflowsfromentitysongoingoperationsExpenses:OutflowsfromentitysongoingoperationsGains:IncreasesinequityfromincidentaltransactionsLosses:DecreasesinequityfromincidentaltransactionsAssets:Probablefutureeconomicbenefits,(i)ElementsinFinancialStatements,(i)Elementsinfinancialstatements,RevenuesExpensesincomestatementGainsLossesComprehensiveincomeAssetsLiabilitiesbalancesheetOwnersequityInvestmentbytheownersDistributionstoowners,REVENUES,Revenuesarethegrossincreasesinowners(stockholders)equitythatresultfromoperatingthebusiness.Generally,revenuesresultfromthesaleofmerchandise,theperformanceofservices,therentalofproperty,orthelendingofmoney.Revenuesusuallyresultinanincreaseinanasset.,EXPENSES,Expensesarethedecreasesinowners(stockholders)equitythatresultfromoperatingthebusiness.Theyarethecostofassetsconsumedorservicesusedintheprocessofearningrevenue.Examplesofexpensesincludeutilityexpense,rentexpense,suppliesexpense,andtaxexpense.Whenrevenuesexceedexpenses,netincomeresults.Whenexpensesexceedrevenues,anetlossresults.,Gainsandlosses(con.),Gains:increaseinequityfromincidentalorperipheraltransactionsnotassociatedwiththecompanysmajororcentrallinesofbusiness,e.g.gainfromdisposaloffixedasset.,Gainsandlosses,Losses:decreaseinequityfromincidentalorperipheraltransactionsnotassociatedwiththecompanysmajororcentrallinesofbusiness,e.g.lossfromdisposaloffixedasset.,ASSETS,Assetsareresourcesownedbyabusiness.Theyarethingsofvalueusedincarryingoutsuchactivitiesasproduction,consumptionandexchange.Thecommoncharacteristicspossessedbyallassetsisthecapacitytoprovidefutureservicesorbenefitstotheentitiesthatusethem.,LIABILITIES,Liabilitiesareclaimsagainstassets.Theyareexistingdebtsandobligations.Mostclaimsofcreditorsattachtototalenterpriseassetsratherthantothespecificassetsprovidedbythecreditor.,Ownersequity,ClaimonnetassetsOwnersequity=totalassets-totalliabilitiesDifferentOEProprietorshipandpartnership:Capital(subdivisions:Capital;Drawing)Corporation:Stockholdersequity(subdivisions:Paid-incapital;Retainedearnings),InvestmentsbyOwners,Revenues,OwnersEquity,Drawing,Expenses,INCREASESANDDECREASESINOWNERSEQUITY,INCREASE,DECREASE,InvestmentsbyStockholders,Revenues,StockholdersEquity,DividendstoStockholders,Expenses,INCREASESANDDECREASESINSTOCKHOLDERSEQUITY,INCREASE,DECREASE,(ii).QualitativeCharacteristicsofAccountingInformation1.PrimaryqualitiesareRelevanceandReliabilityofaccountinginformation.Relevanceofinformationmeans“informationcapableofmakingadifferenceinadecisioncontext.”Theinformationmustbetimelytoberelevant.Theinformationshouldhavepredictivevalue:(behelpfulinmakingpredictionsaboutultimateoutcomesofpast,presentandfutureevents).Theinformationshouldhavefeedbackvalue(helpsuserstoconfirmpriorexpectations.),Informationisreliable,whenitcanbereliedontorepresentthetrue,underlyingsituation.Tobereliable,informationmustbe:*verifiable*faithful,and*neutral,2.Secondarycharacteristicsare:comparabilityandconsistencyofreportedinformation.Forinformationtobecomparable,itmustbe:1)measuredandreportedinasimilarmannerfordifferententerprises.2)usefulintheallocationofresourcestotheareasofgreatestbenefit.3)usefultousersinidentifyingrealdifferencesbetweenenterprises.,Accountinginformationisconsistent,ifthesameaccountingprinciplesareappliedinasimilarmannerfromoneperiodtothenext.Accountingprinciplesmaybechanged,ifthechangeresultsinbetterreporting.Ifprinciplesarechanged,thejustificationfor,andthenatureandeffectofthechange,mustbedisclosed.,LevelIII.RecognitionandMeasurementCriteria(i).EnvironmentalAssumptions1.EconomicEntityAssumptionAneconomicentitycanbeanyorganizationorunitinsociety.Abusinessenterprisemaybeorganizedassoloproprietorship,partnershipandcorporation.,Solo-proprietorship,Abusinessownedbyoneperson.Theownerisoftenthemanager/operatorofthebusiness.Smallservice-typebusinessesorsmallretailstores.,Solo-proprietorship,Usuallyonlyalimitedamountofmoney(capital)isnecessarytostartinbusiness,andtheownerreceivesanyprofits,suffersanylosses,andispersonallyliableforalldebtsofthebusiness.,Partnership,Whenabusinessisownedbytwoormorepersons(partners).Whenapartnershipiscreated,thereshouldbeanagreementsettingforthsuchtermsasinitialinvestmentofeachpartner,dutiesofeachpartner,divisionofprofitsorlosses,andsettlementtobemadeupondeathorwithdrawalofapartner.,Partnership,Eachpartnergenerallyhasunlimitedpersonalliabilityforthedebtsofthepartnership.Thepartnershipaffairsmustbekeptseparatefromthepersonalactivitiesofthepartners.,Corporation,Abusinessorganizedasaseparatelegalentityunderstatecorporationlawanditsownershipdividedintotransferablesharesofstockiscalledacorporation.Theholdersofthesharesenjoylimitedliability;theyarenotpersonallyliableforthedebtsofthecorporateentity.,2.GoingConcernAssumptionThebusinessisassumedtocontinueindefinitelyunlessterminatedbyowners.Thebasisofrecordingfinancialelementsishistoricalaccounting.Liquidationaccounting(basedonliquidationvalues)isnotfollowedunlesssoindicated.,3.MonetaryUnit(UnitOfMeasurement)Moneyisthecommonunitofmeasureofeconomictransactions.Useofamonetaryunitisrelevant,andsimpletounderstand.,4.TimePeriodAssumption(tobeexplainedinChapter2),22,22,(ii).ImplementationPrinciples1.CostPrinciple(HistoricalCostPrinciple)Transactionisrecordedatitsacquisitionprice.Itisnotchangedtoreflectmarketprice.Theprincipleappliestoassetsandliabilities.Usersoffinancialstatementsmayfindcurrentfairvalueinformationtobeusefulaswell.A“mixedattribute”systemreportshistoricalcost,fairvalue,andlowerofcostormarketvaluesappliedtoinventoryvaluation(tobeexplainedinChapter7).,2.RevenueRecognitionPrincipleRevenueisrecognizedwhenitisearnedorrealizable,thesellersmajortaskhascompletedandtheamountcanbeobjectivelydetermined.,24,24,3.TheMatchingPrincipleExpensesinoneperiodarematchedtorevenuesofthesameperiodsoastodeterminetheprofitinthecureentperiodappropriately.,4.TheFullDisclosurePrincipleFinancialstatementsmustreportwhatareasonablepersonwouldneedtoknowtomakeaninformeddecision.Disclosuremaybemade:withinthebodyofthefinancialstatements,asnotestothosestatements,orassupplementaryinformation.,(iii)ImplementationConstraints1.Cost-BenefitRelationship*Thecostofprovidinginformationshouldnotoutweighthebenefitderived.*Costsandbenefitsarenotalwaysobviousorquantifiable.*Soundjudgmentmustbeusedinprovidinginformation.2.Materialityreferstoanitemsimportancetoafirmsoverallfinancialoperations.,3.IndustryPracticesThenatureofsomeindustriesmaysometimesrequiredeparturesfrombasicaccountingtheory.Ifapplicationofaccountingtheoryresultsinstatementsthatarenotcomparableorconsistent,thenindustrypracticesmustexaminedforpossibleexplanations.,4.Conservatismsuggeststhatthepreparer,whenindoubt,chooseaconservativesolution.Thissolutionwillbeleastlikelytooverstateassetsandincome.Conservatismdoesnotsuggestthatnetassetsornetincomebedeliberatelyunderstated.,1.4TheAccountingEquationAndTransactions,TheAccountingEquation:Assets=Liabilities+OwnersEquity,Transactionsaretheeconomiceventsoftheenterprise.Theymaybeidentifiedasexternalorinternal.1Externaltransactionsinvolveeconomiceventsbetweenthecompanyandsomeoutsideenterpriseorparty.2Internaltransactionsareeconomiceventsthatoccurentirelywithinonecompany.,TRANSACTIONANALYSIS,RexNelsondecidedtoopenacomputerprogrammingcompanywhichnamedasSoftroom.Heinvested$150,000cashinthebusiness.,TRANSACTIONANALYSISTRANSACTION1,ThereisanincreaseintheassetCash,$15,000,andanequalincreaseinthestockholdersequity,R.N.Capital,$150,000.,TRANSACTIONANALYSISTRANSACTION1SOLUTION,(1)+150,000=+150,000Capital,TRANSACTIONANALYSISTRANSACTION2,Softroompurchasedcomputerequipmentfor$70,000cash.,Cashisdecreased$70,000andtheassetEquipmentisincreased$70,000.,TRANSACTIONANALYSISTRANSACTION2SOLUTION,=,+,70,000,=,(2)-70,000+70,000,Assets,=,Liabilities,+,R.N.Capital,Cash,+,Equipment,OldBal.,150,000,150,000,NewBal.,80,000,150,000,OwnersEquity,SoftroompurchasedcomputerpaperandothersuppliesexpectedtolastseveralmonthsfromAdamSupplyCompanyfor$16,000oncredit.,TRANSACTIONANALYSISTRANSACTION3,TheassetSuppliesisincreased$16,000andtheliabilityAccountsPayableisincreasedbythesameamount.,TRANSACTIONANALYSISTRANSACTION3SOLUTION,+,=,+,(3)+16,000+16,000,Assets,=,Liabilities,+,OwnersEquity,Accounts,R.N.Capital,Cash,+,Supplies,+,Equipment,=,Payable,+,OldBal.,80,000,70,000,150,000,NewBal.,80,000,16,000,+,70,000,16,000,150,000,Softroomreceived$12,000cashfromcustomersforprogrammingservicesithasprovided.,TRANSACTIONANALYSISTRANSACTION4,Cashisincreased$12,000andR.N.Capitalisincreased$12,000.,Assets,=,Liabilities,+,StockholdersEquity,Accounts,Cash,+,Supplies,+,Equipment,=,Payable,+,OldBal.,80,000,16,000,70,000,16,000,150,000,NewBal.,92,000,+,16,000,+,70,000,=,16,000,+,162,000,R.N.Capital,TRANSACTIONANALYSISTRANSACTION4SOLUTION,(4)+12,000+12,000ServiceRevenue,Softroomreceivedabillfor$2,500fromtheDailyNewsforadvertisingtheopeningofitsbusinessbutpostponedpaymentofthebilluntilalaterdate.,TRANSACTIONANALYSISTRANSACTION5,AccountsPayableisincreased$2,500,andR.N.Capitalisdecreased$2,500.,TRANSACTIONANALYSISTRANSACTION5SOLUTION,Assets,=,Liabilities,+,Accounts,Cash,+,Supplies,+,Equipment,=,Payable,+,OldBal.,92,000,16,00,70,000,16,000,162,000,NewBal.,92,000,+,16,000,+,70,000,=,18,500,+,159,500,StockholdersEquity,R.N.Capital,+2,500-2,500AdvertisingExpense,Softroomprovidedprogrammingservicesof$35,000forcustomers.Cashamountingto$15,000wasreceivedfromcustomers,andthebalanceof$20,000wasbilledtocustomersonaccount.,TRANSACTIONANALYSISTRANSACTION6,TRANSACTIONANALYSISTRANSACTION6SOLUTION,Assets=Liabilities+OwnersEquity,Cash+A/R+Supplies+Equipment=AccountsPayable+R.NCapital,Oldbal.92,00016,00070,00018,500159,500,+15000+20000,+35,000ServiceRevenue,Cashwasincreased$15000;AccountsReceivablewasincreased$20000;andCapitalwasincreased$35000,Expensespai