会计英文教材第一集.ppt

INTERMEDIATEACCOUNTING,6thEDITION,LannyG.ChasteenRichardE.FlahertyMelvinC.OConnor,2,FINANCIALREPORTING,3,LearningObjectives,Describethepurposeoffinancialreportingandidentifytheprimaryfinancialstatements.ExplainthefunctionofaccountingstandardsanddescribetheroleoftheFASBinsettingthesestandardsintheUnitedStates.RecognizetheimportancetofinancialreportingoftheSEC,AICPA,AAA,andIRS.,4,LearningObjectives,RealizethegrowingimportanceandrelevanceofinternationalaccountingissuestothepracticeofaccountingintheUnitedStatesandunderstandtheroleoftheIASCininternationalaccountingstandardsetting.UnderstandthesignificanceoftheFASBsconceptualframeworkinoutliningthequalitiesofgoodaccountinginformation,definingtermssuchasassetandrevenue,andprovidingguidanceaboutappropriaterecognition,measurement,andreporting.,5,LearningObjectives,Identifycareeropportunitiesrelatedtoaccountingandfinancialreportinginthefieldsofpublicaccounting,corporateaccounting,financialanalysis,banking,andconsulting.,6,DefinitionforAccounting,“Accountingisaserviceactivity.Itsfunctionistoprovidequantitativeinformation,primarilyfinancialinnature,abouteconomicentitiesthatisintendedtobeusefulinmakingeconomicdecisions-inmakingreasonedchoicesamongalternativecoursesofaction.”(APB4.40).,7,Accountingprovidesavitalserviceintodaysbusinessenvironment.Accountingisconcernedprimarilywithquantitativefinancialinformationthatisusedinconjunctionwithqualitativeevaluationsinmakingjudgments.,DefinitionforAccounting,Keyfeaturesofthisdefinition:,8,Accountinginformationisusedinmakingdecisionsabouthowtoallocatescarceresources.Althoughaccountantsplacemuchemphasisonreportingwhathasalreadyoccurred,thispastinformationisintendedtobeusefulinmakingeconomicdecisionsaboutthefuture.,DefinitionforAccounting,Keyfeaturesofthisdefinition:,9,UsersofAccountingInformation,Allpartiesinterestedinthefinancialhealthofacompanyarecalledstakeholders.,10,UsersofAccountingInformation,Internalusers,whomakedecisionsdirectlyaffectingtheinternaloperationsoftheenterprise.,Externalusers,whomakedecisionsconcerningtheirrelationshiptotheenterprise.,Twomajorclassificationsofstakeholders,11,Investors,Community,BoardofDirectorsManagementEmployees,Suppliers,Employees,Creditors,Customers,Analysts,Government,MajorInternalandExternalStakeholderGroups,12,FinancialReporting,Thebalancesheetreports,asofacertainpointintime,theresourcesofacompany(theassets),thecompanysobligations(theliabilities),andtheequityoftheowners.,Theincomestatementreports,foracertaininterval,thenetassetsgeneratedthroughbusinessoperations(revenues),thenetassetsconsumed(theexpenses),andthenetincome.,Thestatementofcashflowsreports,foracertaininterval,theamountofcashgeneratedandconsumedbyacompanythroughoperating,financing,andinvestingactivities.,13,Accountingestimatesandjudgmentsareoutlinedinthenotestofinancialstatements.,FinancialReporting,14,FinancialStatementRelationships,15,RelativeFrequencyofAuditOpinions(1998),Companies,Unqualified5,978UnqualifiedWithExplanatoryLanguage1,030Qualified6Noopinion2Adverse0Total7,016,16,AccountingStandard-SettingOrganizations,FASAC,FASB,FAF,SEC,AcSEC,AICPA,IASC,IAPC,Other,EITF,GASAC,GASB,U.S.Govt,17,SecuritiesandExchangeCommission(1934-present),1929stockmarketcrashblamedonnonstandardaccounting.1934SecuritiesActestablishedSECtostandardizeaccounting.Createdtoprotecttheinterestsofinvestorsbyensuringfullandfairdisclosure.GrantedlegalauthoritytodictateGAAP.HastendedtodefersettingGAAPtotheaccountingprofession.,18,U.S.AccountingStandard-SettingBodies,CommitteeonAccountingProcedures(CAP),Born:1939Died:1959,Pronouncements:AccountingResearchBulletins,19,U.S.AccountingStandard-SettingBodies,AccountingPrinciplesBoard(APB),Born:1959Died:1973,Pronouncements:APBOpinions,20,U.S.AccountingStandardsSettingBodies,FinancialAccountingStandardsBoard(FASB),Born:1973Died:,Pronouncements:StatementsofFinancialAccountingStandards,21,FASAC,FASB,FAF,SEC,AcSEC,AICPA,IASC,IAPC,Other,EITF,GASAC,GASB,U.S.Govt,AccountingStandard-SettingOrganizations,22,FinancialAccountingStandardsBoard(1973-present),Sevenfull-timememberscomprisethisindependentbody.IssuesStatementsofFinancialAccountingStandards.DeterminesGAAPby“dueprocess.”Workswithintheconceptualframework.,FASB,FASBAuthoritySources-Overview,23,24,Maintainspowertoregulateregistrantcompanies.,Congress,FASBAuthoritySources-SEC,25,FASBAuthoritySources-AICPA,ProvidesauthoritytotheFASBthroughitsCodeofProfessionalConductRule203.AICPAmembersmustshowthatclientfinancialstatementscomplywithFASBpronouncements(GAAP).AICPAgrantscontinuingmembershiptoitsmemberswhocomplywithRule203.,26,AICPA,FASB,MembersoftheAICPA,EndorsementofFASBthroughRule203,GAAP,FASBAuthoritySources-AICPA,27,FASB“DueProcess”,Topicorprojectaddedtoagenda.Taskforceassembledtostudytopic.ResearchandanalysisperformedbyFASBtechnicalstaff.DiscussionMemorandumdraftedandreleased.Publichearing,usually60dayslater,isheld.,28,Boardanalyzesandevaluatespublicresponse.ExposureDraftpreparedandreleased.Sixty-dayexposureperiodallowsforpubliccomment.Committeestudiespublicresponsetoexposuredraftandpreparesfinaldraft.Boardvotesonfinaldraft(5-2marginrequiredforpassage).,FASB“DueProcess”,29,SECAuthoritativeLiterature,FinancialReportingReleasesStaffAccountingBulletinsAccountingandAuditingEnforcementReleasesAccountingSeriesReleases,30,WhatisGAAP?,LevelAFASBStatementsandInterpretationsAPBOpinionsCAPAccountingResearchBulletinsLevelBFASBTechnicalBulletinsAICPAIndustryAuditandAccountingGuidesAICPAStatementsofPosition,LevelCConsensusPositionsofEITFAICPAPracticeBulletinsLevelDAICPAAccountingInterpretationsFASB“QuestionandAnswer”guidesOtherwidelyrecognizedindustrypractices,31,InternationalAccountingStandardsCommittee,TheInternationalAccountingStandardsCommittee(ISAC)wasformedin1973todevelopworldwideaccountingstandards.,TheaccountingstandardsproducedbytheInternationalAccountingStandardsCommitteearereferredtoasInternationalAccountingStandards(IASs).,32,ConceptualFrameworkOverview,ObjectivesofFinancialReporting,QualitativeCharacteristicsofInformationAccounting,ElementsofFinancialStatements,RecognitionandMeasurementConcepts,Assumptions,Principles,Constraints,33,ObjectivesofFinancialReporting,Usefulness.Understandability.Targetaudience:investorsandcreditors.Assessingfuturecashflows.Evaluatingeconomicresources.Primaryfocusonearnings.,34,ObjectivesofFinancialReporting,Usefulness,Financialreportingshouldprovideinformationthatisusefultopresentandpotentialinvestorsandcreditorsandotherusersinmakingrationalinvestment,credit,andsimilardecisions.,35,ObjectivesofFinancialReporting,Understandability,Financialreportingshouldprovideinformationthatisunderstandabletoonewhohasareasonableknowledgeofaccountingandbusinessandwhoiswillingtostudyandanalyzetheinformationpresented.,36,ObjectivesofFinancialReporting,TargetAudience,Whiletherearemanypotentialusersoffinancialreports,theobjectivesaredirectedprimarilytowardinvestorsandcreditors.,37,ObjectivesofFinancialReporting,AssessingFutureCashFlows,Financialreportingshouldprovideinformationthatisusefulinassessingamounts,timing,anduncertainty(risk)ofprospectivecashflows.,38,ObjectivesofFinancialReporting,EvaluatingEconomicResources,Financialreportingshouldalsoprovideinformationaboutanenterprisesassets,liabilities,andownersequitytohelpinvestors,creditors,andothersevaluatethefinancialstrengthsandweaknessesoftheenterpriseanditsliquidityandsolvency.,39,ObjectivesofFinancialReporting,PrimaryFocusonEarnings,Informationaboutenterpriseearnings,measuredbyaccrualaccounting,generallyprovidesabetterbasisforforecastingfutureperformancethandoesinformationaboutcurrentcashreceiptsanddisbursements.,40,QualitativeCharacteristicsofAccountingInformation,PrimaryQualitiesA.Relevance1.PredictiveValue2.FeedbackValue3.TimelinessB.Reliability1.Verifiability2.RepresentationalFaithfulness3.NeutralitySecondaryQualitiesA.ComparabilityB.Consistency,41,Comparability,Consistency,Predictive,Value,Feedback,Value,Timeliness,Relevance,Verifiability,Neutrality,Representational,Faithfulness,Reliability,Decision,Usefulness,Understandability,DecisionMakers,QualitativeCharacteristicsofAccountingInformation,BenefitsCost,Materiality,42,WhatAboutConservatism?,Theconceptofconservatismcanbesummarizedasfollows:Whenindoubt,recognizealllossesbutdontrecognizeanygains.,43,ElementsofFinancialStatements,AssetsLiabilitiesEquityInvestmentDistributionComprehensi