会计学人大出版英文版第23版Chap001.ppt

Copyright 2011bytheMcGraw HillCompanies Inc Allrightsreserved McGraw Hill Irwin EnvironmentandTheoreticalStructureofFinancialAccounting 1 Questions Whatisfinancialaccounting Who Towhom How FinancialAccountingEnvironment Profit orientedcompaniesNot for profitentitiesHouseholds ProvidersofFinancialInformation ExternalUserGroups InvestorsCreditorsEmployeesLaborunionsCustomersSuppliersGovernmentagenciesFinancialintermediaries FinancialAccountingEnvironment Relevantfinancialinformationisprovidedprimarilythroughfinancialstatementsandrelateddisclosurenotes BalanceSheetIncomeStatementStatementofCashFlowsStatementofShareholders Equity TheEconomicEnvironmentandFinancialReporting Asoleproprietorshipisownedbyasingleindividual Apartnershipisownedbytwoormoreindividuals Acorporationisownedbyshareholders Investment CreditDecisions ACashFlowPerspective ShareholdersReceiveCash DividendsSaleofStock CreditorsReceiveCash InterestLoanRepayment Accountinginformationshouldhelpinvestorsandcreditorsevaluatetheamount timing anduncertaintyoftheenterprise sfuturecashflows CashversusAccrualAccounting CashBasisAccountingRevenueisrecognizedwhencashisreceived Expensesarerecognizedwhencashispaid OROROR OR AccrualAccountingRevenueisrecognizedwhenearned Expensesarerecognizedwhenincurred CashversusAccrualAccounting CashBasisAccountingCarterCompanyhassalesonaccounttotaling 100 000peryearforthreeyears Cartercollected 50 000inthefirstyearand 125 000inthesecondandthirdyears Thecompanyprepaid 60 000forthreeyears rentinthefirstyear Utilitiesare 10 000peryear butinthefirstyearonly 5 000waspaid Paymentstoemployeesare 50 000peryear Let slookatthecashflows CashversusAccrualAccounting CashBasisAccounting Cashflowsinanyoneyearmaynotbeapredictoroffuturecashflows CashversusAccrualAccounting AccrualBasisAccounting NetIncomeisconsideredabetterindicatoroffuturecashflows TheDevelopmentofFinancialAccountingandReportingStandards Concepts principles andproceduresweredevelopedtomeettheneedsofexternalusers GAAP HistoricalPerspectiveandStandards CurrentStandardSetting SupportedbytheFinancialAccountingFoundationFivefull time independentvotingmembersAnswerableonlytotheFinancialAccountingFoundationMembersnotrequiredtobeCPAs FinancialAccountingStandardsBoard FASBAccountingStandardsCodification Theobjectiveofthecodificationprojectwastointegrateandorganizebytopicsallrelevantaccountingpronouncementsintoasearchable onlinedatabase EstablishmentofAccountingStandardsAPoliticalProcess GAAP InternalRevenueServicewww irs gov AmericanInstituteofCPAswww aicpa org SecuritiesandExchangeCommissionwww sec gov AmericanAccountingAssociationwww aaa edu org GovernmentalAccountingStandardsBoardwww gasb org FinancialExecutivesInternationalwww fei org InternationalAccountingStandardsBoardwww iasb org FASB sStandard SettingProcess Boardreceivesrecommendationsforprojects Boardvotestoaddtheprojecttoitsagenda Boarddeliberatestheissuesataseriesofpublicmeetings BoardissuesanExposureDraft ED BoardholdsapublicroundtablemeetingontheED StaffanalyzesfeedbackandtheBoardre deliberatestheproposedrevisionsatpublicmeetings BoardissuesaStandardsUpdatedescribingamendmentstotheCodification TowardGlobalAccountingStandards ThemainobjectiveoftheInternationalAccountingStandardsBoard IASB istodevelopasinglesetofhighquality understandableandenforceableglobalaccountingstandardstohelpparticipantsintheworld scapitalmarketsandotherusersmakeeconomicdecisions RoleoftheAuditor AuditorsserveasindependentintermediariestohelpinsurethatmanagementhasappropriatelyappliedGAAPinpreparingthecompany sfinancialstatements FinancialReportingReform Asaresultofnumerousfinancialscandals CongresspassedthePublicCompanyAccountingReformandInvestorProtectionActof2002 Sarbanes OxleyAct Thegoalwastorestorecredibilityandinvestorconfidenceinthefinancialreportingprocess AMoveAwayfromRules BasedStandards Rulesbasedaccountingstandardsvs objectives orientedapproachObjectivesoriented principles based approachstressedprofessionaljudgment EthicsinAccounting Forfinancialinformationtobeuseful itshouldpossessthefundamentaldecision specificqualitiesofrelevanceandfaithfulrepresentation Managementmaybeunderpressuretoreportdesiredresultsandignoreorbendexistingrules AnalyticalModelforEthicalDecisions Determinethefactsofthesituation Identifytheethicalissueandthestakeholders Identifythevaluesrelatedtothesituation Specifythealternativecoursesofaction Evaluatethecoursesofaction Identifytheconsequencesofeachcourseofaction Makeyourdecisionandtakeanyindicatedaction TheConceptualFramework TheConceptualFrameworkhasbeendescribedasaconstitution acoherentsystemofinterrelatedobjectivesandfundamentalthatleadtoconsistentaccountingstandards FASBConceptualFramework StatementsofFinancialAccountingConcepts ObjectivesofFinancialReporting SFACNo 1 QualitativeCharacteristics SFACNo 2 ElementsofFinancialStatements SFACNo 6 RecognitionandMeasurement SFACNo 5andSFACNo 7 TheConceptualFramework FASBandIASBJointConceptualFrameworkProject EightPhases ObjectiveandQualitativeCharacteristicsElementsandRecognitionMeasurementReportingEntityPresentationandDisclosureFrameworkforaGAAPHierarchyApplicabilitytotheNot For ProfitSectorRemainingIssues ObjectiveToprovidefinancialinformationthatisusefultocapitalproviders Elements RecognitionandMeasurementConcepts Constraints FinancialStatements TheConceptualFramework FundamentalandEnhancingQualitativeCharacteristics Relevance Faithfulrepresentation QualitativeCharacteristicsofAccountingInformation Decisionusefulness PracticalBoundaries Constraints toAchievingDesiredQualitativeCharacteristics CostEffectiveness Materiality ElementsofFinancialStatements ElementsofFinancialStatements RecognitionandMeasurementConcepts RecognitionProcessofadmittinginformationintothebasicfinancialstatements DefinitionMeasurabilityRelevanceReliability Measurementinvolvesboththechoiceofaunitofmeasureandthechoiceofanattributetobemeasured UnderlyingAssumptionsandAccountingPrinciples EvolutionofAcco