Stockholders’Equity(中级会计学-赖红宁).ppt

1 TheBalanceSheetandtheStatementofChangesinStockholders Equity C hapter 3 AnelectronicpresentationbyDouglasCloudPepperdineUniversity 2 1 Understandthepurposesofthebalancesheet 2 Definetheelementsofabalancesheet 3 Explainhowtomeasuretheelementsofabalancesheet 4 Classifytheassetsofabalancesheet 5 Classifytheliabilitiesofabalancesheet 6 Reportthestockholders equityofabalancesheet Objectives Continued 3 7 Prepareastatementofchangesinstockholders equity 8 Understandtheotherdisclosureissuesforabalancesheet 9 DescribetheSECintegrateddisclosures 10 Explainthereportingtechniquesusedinanannualreport Objectives 4 FASBStatementofConceptsNo 5 FASBStatementofConceptsNo 5recommendsthatafullsetoffinancialstatementsforanaccountingperiodshouldshowacompany s 5 1 Financialpositionattheendoftheperiod 2 Netincomefortheperiod 3 Comprehensiveincomefortheperiod 4 Cashflowsfortheperiod 5 Investmentsbyanddistributionstoownersfortheperiod FASBStatementofConceptsNo 5 6 InterrelationshipofFinancialStatements BeginningBalanceSheetAssetsLiabilitiesStockholders Equity Continued 7 TransactionsandEvents Continued InterrelationshipofFinancialStatements 8 IncomeStatementRevenuesExpenses StatementofCashFlowsOperatingActivitiesInvestingActivitiesFinancingActivities InterrelationshipofFinancialStatements 9 BasicAccountingEquation Assets 10 Liquidity Thetermliquidityisusedtodescribehowquicklyanassetcanbeconvertedintocashoraliabilitypaid 11 FinancialFlexibility Financialflexibilityreferstotheabilityofacompanytouseitsfinancialresourcestoadapttochange 12 OperatingCapability Operatingcapabilityreferstotheabilityofacompanytomaintainagivenphysicallevelofoperations 13 Three StageProcessforDisclosingInformationontheBalanceSheet 1 Identificationofwhatitemsmeetthedefinitionoftheelements 2 Measurement valuation oftheelements 3 Reporting classification oftheelements 14 ElementsoftheBalanceSheet Assets Assetsareprobablefutureeconomicbenefitsobtainedorcontrolledbyacompanyasaresultofpasttransactionsorevents 15 1 Theresourcemustbeabletocontributedirectlyorindirectlytothecompany sfuturenetcashinflows 2 Thecompanymustbeabletoobtainthefuturebenefitandcontrolothers accesstoit 3 Thetransactionoreventgivingthecompanytherighttoorcontroloverthebenefitmusthaveoccurred ElementsoftheBalanceSheet Assets 16 Assetsmaybenaturalorman made tangibleorintangible andexchangeableorusefulonlyinthecompany sactivities ElementsoftheBalanceSheet Assets 17 Liabilitiesareprobablefuturesacrificesofeconomicbenefitsarisingfrompresentobligations L ElementsoftheBalanceSheet Liabilities ofacompanytotransferassetsorprovideservicestootherentitiesinthefutureasaresultofpasttransactionsorevents 18 ElementsoftheBalanceSheet Stockholders Equity Assets Liabilities Equityisresidualinterestintheassetsofacompanythatremainafterdeductingliabilities 19 MeasurementoftheElementsoftheBalanceSheet HistoricalCost CurrentCost CurrentMarketValue NetRealizableValue PresentValue 20 MeasurementoftheElementsoftheBalanceSheet Assets Thehistoricalcostofanassetistheexchangepriceinthetransactioninwhichtheassetwasacquired Thecurrentcostofanassetistheamountofcash orequivalent thatwouldberequiredonthedateofthebalancesheettoobtainthesameasset Thecurrentmarketvalueofanassetistheamountofcash orequivalent thatcouldbeobtainedonthedateofthebalancesheetbysellingtheassetinanorderlyliquidation Thenetrealizablevalueofanassetistheamountofcash orequivalent intowhichtheassetisexpectedtobeconvertedintheordinaryoperationsofthecompany lessanyexpectedconversioncosts Thepresentvalueofanassetisthenetamountoffuturecashinflowsintowhichtheassetisexpectedtobeconvertedlessthepresentvalueoffuturecashoutflowsnecessarytoobtainthoseinflows 21 MeasurementoftheElementsoftheBalanceSheet Liabilities Initially theamountofcashreceivedwhenanobligationwasincurred historicalproceeds subsequenttoincurrence thehistoricalamountmaybeadjustedforamortization Thecurrentproceedsistheamountofcashthatwouldbeobtainedifthesameobligationwereincurred Thecurrentmarketvalueofaliabilityistheamountofcashthatwouldberequiredcurrentlytoeliminatetheliability Thenetrealizablevalueofaliabilityistheamountofcashexpectedtobepaidtoeliminatetheliabilityinduecourseofbusiness Thepresentvalueoffuturecashoutflowstoeliminatetheliabilityinduecourseofbusiness 22 LimitationsoftheBalanceSheet Useofhistoricalcosttovalueassetsandliabilitiesdoesnothelpassessthelikelyamountsoffuturecashflows Humanresources or intellectualcapital suchashigh qualitymanagementorhighlycreativeemployeesarenotincludedasassets Manyoftheamountsthatacompanyreportsarebasedonestimates Inperiodsofinflation theamountslisteddonotshowthe purchasingpower ofitsassetsandliabilities 23 CurrentAssets Currentassetsarecashandotherassetsthatareexpectedtobeconvertedintocash sold orconsumedwithinoneyearorthenormaloperatingcycle whicheverislonger 24 OperatingCycle Anoperatingcycleistheaveragetimetakenbyacompanytospendcashforinventory processandselltheinventory andcollectthereceivables convertingthembackintocash 25 OperatingCycleFlow MakeCollectionsofAccountsReceivable1 Collectcash2 Incurbaddebts MakeSales Revenues1 Collectcash2 Increaseaccountsreceivable3 ReducedeferredrevenuesIncurCostofGoodsSold1 Reduceinventory AcquireInventory1 Paycash2 Incuraccountspayable 26 CurrentAssets Cashincludescashonhandandreadilyavailableincheckingandsavingsaccounts Cashequivalentsarerisk freesecurities suchasmoneymarketfundsandtreasurybillsthatwillmatureinthreemonthsorlessfromthedateacquiredbytheholder 27 CurrentAssets Temporaryinvestmentsinmarketablesecuritiesincludedebtandequitysecuritiesthatareclassifiedas tradingsecurities and available for salesecurities 28 CurrentAssets Receivablesincludeaccountsreceivableandnotesreceivablewithshort termmaturitydates Theyarelistedattheirestimatedcollectibleamounts netrealizablevalues Inventoriesincludegoodsheldforresaleinthenormalcourseofbusinessplus inthecaseofamanufacturingcompany rawmaterialsandgoodsinprocessinventories Prepaiditemsincludeinsurance rent officesuppliesandtaxesthatwillnotbeconvertedintocashbutwillbeconsumed 29 CurrentLiabilities Currentliabilitiesarethoseobligationswhoseliquidationisexpectedtorequiretheuseofexistingcurrentassets orthecreationofothercurrentliabilities 30 CurrentLiabilities Obligationsforitemsthathaveenteredintotheoperatingcycle accountspayableandsalariespayable Advancecollectionsforthefuturedeliveryofgoodsorperformancesofservice unearnedrentandunearnedticketsales 3 Otherobligationsthatwillbepaidwithinoneyearortheoperatingcycle estimatedliabilitiesforshort termproductwarranties 31 WorkingCapital CurrentAssetsCurrentLiabilities WorkingCapital 32 Long TermInvestments Investmentitemsthatmanagementexpectstoholdformorethanoneyearortheoperatingcycle whicheverislonger areclassifiedaslong term noncurrent investments 33 Thecompanyexpectsthemarketvalueoftheinvestmenttoincrease Thecompanywishestoreceiveincomefrominterestordividends Thecompanymaydesiretoexercisecontroloveranothercompanyorasupplier Thecompanymayacquireproperty plant orequipmentforfutureoperations Long TermInvestments Acompanymakesinvestmentsforavarietyofreasons 34 Property Plant andEquipment Property plant andequipmentincludesthetangibleassetsusedinthefirm soperations Alsocalledfixedassets 35 IntangibleAssets Intangibleassetsarethosenoncurrenteconomicresourcesthatareusedintheoperationsofthebusinessbuthavenophysicalexistence 36 IntangibleAssets Acompanymayhavethreecategoriesofintangibleassets 1 Intangibleassetswithfiniteusefullives 2 Intangibleassetswithindefinitelives 3 Goodwill 37 OtherAssets TheOtherAssetssectionoccasionallyisusedtoreportmiscellaneousassetsthatmaynotbereadilyclassifiedwithinoneoftheprevioussections Sometimesreferredtoas deferredcharges 38 Long TermLiabilities Long termliabilitiesarethoseobligationsthatarenotexpectedtorequiretheuseofcurrentassetsornotexpectedtocreatecurrentliabilitieswithinoneyearorthenormaloperatingcycle whicheverislonger 39 OtherLiabilities Deferredtaxliabilitiesandobligationsofacomponentofthecompanythatisbeingdiscontinuedareexamplesofitemsthatmightbeincludedasotherliabilities 40 ConceptualGuidelines Reportingassetsaccordingtotheirtypeorexpectedfunctioninthecentraloperationsorotheractivitiesofthecompany Reportingasseparateitemsassetsandliabilitiesthataffectthefinancialflexibilityofthecompanydifferently Reportingassetsandliabilitiesaccordingtomeasurementmethodusedtovaluetheitems FASBsuggestedguidelinesfordevelopinghomogeneousclassesofassetsandliabilities 41 Stockholders Equity Stockholders equityistheresidualinterestofthestockholdersintheassetsofthecorporation Asoleproprietorshipisasingle ownercompany Thecorporationisacomplexbusinessorganization Usuallythereisabsenteeownership 42 ContributedcapitalRetainedearningsAccumulatedothercomprehensiveincome Stockholders Equity ComponentsofStockholders Equity 43 Stockholders Equity Legalcapitalistheminimumamountofstockholders equitythatthecorporationmaynotdistributeasdividends Preferredstockreceivespreferenceindeclareddividends Commonstockcarriestherighttovoteattheannualstockholders meetingandtoshareinresidualprofits ContributedCapital 44 Stockholders Equity Acorporationsells100sharesofits 5parcommonstockfor 30pershare Cash3 000CommonStock 5par500AdditionalPaid inCapitalonCommonStock2 500 ContributedCapital 45 Acorporationsells20sharesofits 100parpreferredstockfor 110pershare Cash2 200PreferredStock 100par2 000AdditionalPaid inCapitalonPreferredStock200 Stockholders Equity ContributedCapital 46 Acorporationsells100sharesofitsno parcommonstockat 50pershare Cash5 000CommonStock No ParValue5 000 Stockholders Equity ContributedCapital 47 Retainedearningsisthetotalamountofcorporatenetincomethathasnotbeendistributedtostockholdersasdividends Usesofnetincome Touseindailyoperations Tomaintainitsproductivefacilities Forgrowth Stockholders Equity 48 1 Unrealizedincreases gains ordecreases losses inthemarketvalueofinvestmentsinavailable for salesecurities 2 Transactionadjustmentsfromconvertingthefinancialstatementsofacompany sforeignoperationsintoU S dollars 3 Certaingainsandlosseson derivative financialinstruments 4 Certainpensionliabilityadjustments Comprehensiveincomeincludesbothnetincomeandothercomprehensiveincome Accumulatedothercomprehensiveincomemightincludefouritems Stockholders Equity 49 Ifacorporationhasmorethanoneitemofothercomprehensiveincome itmayreporttheamountofeachiteminstockholders equity Stockholders Equity 50 Or itmayreportthetotalamountofaccumulatedothercomprehensiveincomeforalltheitemsinstockholders equity Thisapproachrequiresanotetothestatements Stockholders Equity 51 StatementofChangesinStockholders Equity Acorporationmustdisclosethechangesinitsstockholders equityaccountwhenissuingfinancialstatements Thisstatementshouldshowinvestmentsbyanddistributionstoownersduringtheperiod amongotheritems 52 StatementofChangesinStockholders Equity FASBStatementofConceptsNo 6definedinvestmentsbyownersanddistributionstoowners asfollows Investmentsbyownersareincreasesintheequityofacompanyresultingfromtransfersofsomethingvaluabletothecompanyfromotherentitiesinordertoobtainorincreaseownershipinterests Distributionstoownersaredecreasesintheequityofacompanycausedbytransferringassets renderingservices orincurringliabilitiestoowners 53 Balance Jan 1 2004 65 000 143 400 64 900 10 000 283 300Unrealizedincreaseinvalueofavailable for salesecurities2 0002 000Netincome62 50062 500Cashdividendspaid 11 200 11 200 Commonstockissued6 50030 50037 000Balance Dec 31 2004 71 500 173 900 116 200 12 000 373 600 StatementofChangesinStockholders Equity SCHEDULEACARONMANUFACTURINGCOMPANY AccumulatedCommonAdditionalOtherStockPaid inRetainedComprehensive 5parCapitalEarningsIncomeTotal StatementofChangesinStockholders EquityForYearEndedDecember31 2004 Exhibit3 8 54 SummaryofAccountingPolicies Aselectionfromexistingacceptablealternatives Principlesandmethodspeculiartotheindustryinwhichthecompanyoperates UnusualorinnovativeapplicationsofGAAP APBOpinionNo 22requiresthatacompanyincludeadescriptionofallsignificantaccountingpoliciesasanintegralpartofitsfinancialstatements Inparticular whentheseprinciplesandmethodsinvolve 55 DerivativeFinancialInstruments FASBStatementNo 107requiresacompanytodisclosethefairvalueofallitsfinancialinstruments whetherrecognizedornotonitsbalancesheet TheStatementalsorequiresacompanytodiscloseallsignificantconcentrationsofcreditriskduetoitsfinancialinstruments Acompanytypicallymakesthesedisclosuresinthenotestoitsfinancialstatements 56 DerivativeFinancialInstruments FASBStatementNo 133requiresacompanytorecognizeallderivativefinancialinstrumentsaseitherassetsorliabilitiesonthebalancesheet Theseinstrumentsshouldbemeasuredatfairvalue Fairvalueistheamountatwhichtheinstrumentcouldbepurchasedorsoldinacurrenttransactionbetweenwillingparties 57 Thetypeofderivativeinstrumentsitholds Itsobjectivesinholdingtheinstruments Itsstrategiesforachievingtheseobjectives DerivativeFinancialInstruments FASBStatementNo 133alsorequiresthefollowinginformation 58 ContingentLiabilitiesandAssets Loss Disclosure 59 SubsequentEvents Asubsequenteventisonethatoccursbetweenthebalancesheetdateandthedateofissuanceoftheannualreport 60 SECIntegratedDisclosures TheSecuritiesandExchangeCommissionhasthelegalauthoritytoprescribeaccountingprinciplesandreportingpracticesforallregulatedcompanies Are