北美财务报告(PPT 33页)

1,FINANCIALACCOUNTINGANDREPORTINGINNORTHAMERICA,PresentedatSchoolofManagement,UESTCByGeorgeLan,PhDAssociateProfessorofAccountingUniversityOfWindsorWindsor,Ontario,CanadaMarch19,2003,2,OutlineofPresentation-1,Rolesofstandardsettingbodies(FASB,CICA),Managers,AuditorsandSuppliersofCapital(InvestorsandCreditorsorlenders)SeeDiagramInformationEconomicsApproachandEfficiencyofcapitalmarketsWorldCom,EnronandArthurAndersenIncentivesofManagementtoManageEarnings,3,OutlineofPresentation-2,Stepstopreventscandalsfromoccurringinthefuture?SomeEthicalPrinciplesAnEthicalCaseQuestionsregardingpresentationoranyother(accounting)questions.,4,InformationEconomicsApproach,InformationAsymmetryexistsbetweenthepartiesinbusinesstransactions.Themanagers(agents)havemoreinformationthantheinvestors(principals).Managersmayattempttoselectpoliciesortoreleasebiasedinformationthatbenefitthemselvestotheexpenseoftheowners.RoleofAccounting:toprovideinformationusefulforrationaldecision-making.,5,DecisionUsefulnessApproach,Section1000ofCICAHandbook(par.1000.15):Theobjectiveoffinancialstatementsistocommunicateinformationthatisusefultoinvestors,members,contributors,creditorsandotherusersinmakingtheirresourceallocationdecisionsand/orassessingmanagementstewardship.,6,ObjectivesofFinancialStatements,StatementsofFinancialAccountingConcepts(1978)(SFAC1):Toprovideinformationthatisusefultopresentandpotentialinvestorsandcreditorsandotherusersinmakingrationalinvestment,credit,andsimilardecisions.Toprovideinformationtohelppresentandpotentialinvestorsandcreditorsinassessingtheamounts,timinganduncertaintyofprospectivecashreceiptsfromdividendsorinterest.,7,RelevanceandReliability,Tobeuseful,accountinginformationshouldprovideaninformativeinformationsystemthatlinkscurrentfinancialstatementswithfuturestaterealizationsandpayoffs.AccountinginformationshouldberelevantI.e.hasthecapacitytoaffectinvestorsbeliefsaboutfuturereturns.Accountinginformationshouldbereliablei.e.shouldfaithfullyrepresentswhatitpurportstomeasure.Itshouldbepreciseandfreefrombias.,8,ElementsofFinancialStatements,Assets:Probablefutureeconomicbenefitsobtainedorcontrolledasaresultofpasttransactions.Liabilities:ProbablefuturesacrificesofeconomicbenefitsOwnersEquity:residualInterestinassetsafterdeductingliabilitiesi.e.A=L+O.E.orO.E=AL.Revenues:inflowsofassets(orsettlementofliabilities)arisingfromtheentitysmajororongoingactivities.,9,AccountingPrinciples-1,HistoricalCostPrinciplei.e.recognise(recordandreport)assetsandliabilitiesinitiallyatthecash-equivalentcost.RevenueRecognitionPrinciplei.e.recogniserevenueswhenearned(earningprocessiscompleteandanexchangehastakenplace).Allnecessarycostshavebeenincurredandcollectionisassuredusuallyatpointatsale.,10,AccountingPrinciples-2,MatchingPrinciplei.e.recogniseallexpensesincurredinproducingrevenuesinthesameperiodastherevenues.FullDisclosurePrinciplei.e.discloseallrelevantinformation.,11,LANSCLOTHINGCOMPANY,Invest10,000Yuans(Y)tostartthebusinessBuy1000shirtsat5Yeach.Paywagesof1000Yforthefirstmonth.Sell400shirtsat20Yeach.Payrentof600Yforthefirst6months.Incurredmiscellaneousexpensesof500Y.Borrowed4800Yandboughtatruck.Truckwilllastfor4years.Whatismynetincomeforfirstmonth?,LansClothingNetIncomeforfirstmonth,NetIncomebeforetaxes=RevenuesExpenses=400X20(sales)-400X5(costofshirtssold)1000(wagesexpense)600/6(rentforonemonth)500(miscellaneousexpenses)-4800/48(amortisationexpensefor1month)=4,300Yuans,13,StandardSettingrevenuesrecognizedbeforetheyareearned.Liabilitieshiddenfrombalancesheet.Gamblingonenergyfuturescontracts.SherriWatkins(Enronmanager)blewthewhistlebutnoonelistened.,19,ArthurAndersen(Former“BigFive”AccountingFirm),Issuedunqualifiedopiniontofinancialstatements.Didnotdiscloseaccountingirregularities.Shreddeddocumentstohideevidence.Guiltyofobstructingjustice.,20,ManagementsIncentivestoManageEarnings,IncometaxesPostponepaymentbyminimizingreportedincomeBonusMaximizetheirbonusesbyincreasingreportedincomeDebtAgreementsEasiertomeetdebtagreements(covenants)byincreasingincomeandassetsStockoptions(giveyoutherighttopurchaseastockatafixedpriceinsomefutureperiod)maximizeshareprices(believedtoberelatedtoreportedincome).,21,AccrualsandEarningsManagement,AmortizationexpenseIncreaseinnetreceivablesIncreaseininventoryDecreaseinaccountspayableandaccrualliabilities,22,Whatcouldbedone?,Betteraccountingstandardsandbetterdisclosure.Lessemphasisonhistoricalcostandmoreemphasisoncurrentmarketvalueofassetsandliabilitiesonbalancesheet.Foreexample,recordallstockoptionsasanexpenseonincomestatement,whenissued.Restrictionsonauditorse.g.auditorsnotallowedtodoconsultingworkforfirmtheyauditGreateraccountabilityofboardofdirectorsandmorepunishmentforwrongdoings.,23,Ethicsandaccounting,EthicsRulesOfProfessionalConductLegalWhatislegalormeettherulesofprofessionalconductmaynotbeconsideredethical.,24,SomePrinciplestoEvaluateOnesActions-1,Non-Maleficence:AmIcausingharmbyfailingtodosomethingoragreeingwithit?Beneficence:Domyactionsbenefitotherpersonsbesidesmyself?Justice:DoItreatthoseforwhomIamresponsibleequitably(fairly)?,25,SomePrinciplestoEvaluateOnesActions-2,Fidelity:DoIupholdmypartoftherelationship?ActConsciously:DoIknowtheassumptionsonwhichIbasemyactionsandaretheyvalid?UtilitarianismDeontology,26,ConsequencesorNatureofActions?,Utilitarianism:BritishPhilosopherJohnStuartMill(1806-1873)Domyactionspromote“theGreatestGoodfortheGreatestNumberofIndividuals”?Deontology:GermanPhilosopherImmanuelKant(1724-1804)Examinethenatureofactionsratherthantheoutcomesachieved.Doingtherightthingwhatevertheconsequences.,27,AnEthicalDilemma(conflictinduties),SupposeyouaretheauditorofABCauditingcompanyandyouaredoinganauditofXYZCompany(yourclient).TheCFOofXYZCorefusestowritedownsomeinventoryyoustronglybelievetobeobsoleteandnotworthmuch.YoudiscussthesituationwithyourownbossatABC.Yourboss(agoodfriendoftheCFO)tellsyoutoagreewiththeCFO.Whatshouldyoudo?,28,AnEthicalCaseAnalysisFramework,Whatarethefacts?Whoarethestakeholders(thoseaffected)?Whatarethealternatives?WhatEthicalPrinciplesApply?Examinepros(advantages)andcons(disadvantages)ofeachalternative.Makeadecision,29,ApplyingtheFramework,Stakeholders:yourselfandfamily,yourbossandcompany,yourclient,thepublic(investorsandcreditors)whodependonfinancia