CFA一级复习精华材料(FSA部分).docx

The Framework of FRSStandard-setting bodies1. Financial Accounting Standards Board (FASB)2. The Statement of Financial Accounting Standards (SFAS)3. Generally Accepted Accounting Principle(GAAP)Desirable attributes of standard-setters:1. Observe high professional standards.2. Have adequate authority, resources, and competencies to accomplish its mission.3. Have clear and consistent standard-setting processes.4. Guided by a well-articulated framework.5. Operate independently while still seeking input from stakeholders.6. Should not be compromised by special interests.7. Decisions are made in the public interest.1. International Accounting Standards Board (IASB)2. The International Accounting Standards (IAS)，The International Financial Reporting Standards (IFRS)3. IFRSRegularly authoritiesl The Securities and Exchange Commission (SEC) in the U.S.l The Financial Service Authority (FSA) in the U.K.l Most national authorities belong to the International Organization of Securities Commissions (IOSCO)A core objective of IOSCO is to ensure that markets are fair, efficient, and transparent.IOSCO are to:(1) protect investors; (2) ensure the fairness, efficiency, and transparency of markets; and(3) reduce systemic risk, and it has a goal of uniform financial regulations across countries.Barriers to developing one universally accept set of financial reporting standard： 1. Different standard-setting bodies and the regulatory authorities of different countries can and do disagree on the best treatment of a particular item or issue.2. Political pressures that regulatory bodies face from business groups and others who will be affected by changes in reporting standards.IASB conceptual frameworkFundamental principles for preparing F/S: AA CC FG MN R1. Going concern basis2. Accrual basis of accounting 3. Fair presentation4. Consistency5. Materiality：free of misstatements or omissions，重大性，重大的才是相关的6. Comparative information7. Aggregation：Aggregation of similar items and separation of dissimilar items.8. No offsetting，不允许相互抵消9. Reporting frequency： Coherent financial reporting framework：1. Transparency； 2. Comprehensiveness； 3. ConsistencyBarriers to creating a coherent financial reporting framework：1. Valuation； 2. Standard setting： principles-based approach （IFRS）； rules-based approach （GAAP）；objectives-oriented approach；3. Measurement： asset/liability approach； revenue/expense approach；GAAP与IFRS的区别frameworkIASB：lists income and expenses as elements related to performanceFASB：Revenues, expenses, gains, losses, and comprehensive income.defines an assetIASB：a resource from which a future economic benefit is expected to flowFASB：future economic benefit， uses the word probablevaluationFASB：does not allow the upward valuation of most assets.revenue recognizedIASB：For sale of goods, revenue is recognized when:1. The risk and reward of ownership is transferred.2. There is no continuing control or management over the goods sold.3. Revenue can be reliably measured.4. There is a probable flow of economic benefits.5. The cost can be reliably measured.For services rendered, revenue is recognized when:1. The amount of revenue can be reliably measured.2. There is a probable flow of economic benefits.3. The stage of completion can be measured.4. The cost incurred and cost of completion can be reliably measured.FASB：realized or realizable, and earnedSEC: 1. There is evidence of an arrangement between the buyer and seller.2. The product has been delivered or the service has been rendered.3. The price is determined or determinable.4. The seller is reasonably sure of collecting money.B/S formatIFRS和GAAP都要求分别列示current and noncurrent assets and liabilities。 IFRS允许公司选择使用liquidity-base format，主要用于banking industryFinancial position Financial performance Change in financial positionThe balance sheet The income statementThe cash flow statementAssets = liabilities + owners equityRevenue - Expenses = Net incomeOperating cash flowsInvesting cash flowsFinancing cash flowsNet cash inflow or outflow for the financial yearIS表也被叫做PL表,profit and loss财务比率一般是：存/存，流/存，流/流五大财务报表The balance sheet a point in time.Owners equity is the residual interest in the net assetsThe income statementover a period of time.The cash flow statementOperating cash flows include the cash effects of transactions that involve the normal business of the firm.Investing cash flows are those resulting from the acquisition or sale of property, plant, and equipment; of a subsidiary or segment; of securities; and of investments in other firms.Financing cash flows are those resulting from issuance or retirement of the firms debt and equity securities and include dividends paid to stockholders.The statement of comprehensive income综合收益表reports all changes in equity expect for shareholder transactionscomprehensive income = other comprehensive income + Net incomeUnder IFRS： Income statement can be combined with other comprehensive income （其它综合收益）and presented as a single statement of comprehensive income. Alternatively, the income statement and the statement of comprehensive income can be presented separately.Under U.S. GAAP: firms can choose to report comprehensive income in the statement of shareholders equity.The statement of changes in equityThe statement of changes in equity reports the amounts and sources of changes in equity investors investment in the firm over a period of time.Measurement of financial elementshistorical costthe amount originally paid for the asset最初获得资产的时候花了多少钱会计的基本原理是历史成本amortized costhistorical cost adjusted for depreciation, amortization, depletion, and impairmentD/A=折旧（有形资产）与摊销（无形资产，如专利），depletion是矿产方面的current costthe amount the firm would have to pay today for the same asset如果今天买要多少钱realizable valuethe amount for which the firm could sell the asset今天卖能卖多少钱，卖可能会有成本费用，即可实现净值present valuethe discounted value of the assets expected future cash flows未来现金流的折现fair valuethe amount at which two parties in an arms-length transaction would exchange the asset公允价值，非关联方的交易，充分信息交易，不一定是公允价值，所以要arms-length transactionOther relevant informationFinancial statement notes (Footnotes)注解Are audited1. accounting methods, assumptions, and estimates 会计方法，会计假设和会计估计2. business acquisitions or disposal 收购兼并，资产处置3. legal actions 法律行动4. employee benefit plans 员工福利计划 会兼法员客关公5. significant customers 重要客户6. sales to related parties 关联交易7. segments of the firm 公司分部Supplementary schedules补充信息1. Operating income or sales by region or business segment2. Reserves for an oil and gas company 石油储备3. hedging activities and financial instrumentsManagements Discussion and Analysis (MD&A)管理层探讨与分析或叫做：management commentary，包括了以下：companys objectives, strategies and significant risks1. Providing an assessment of the financial performance and condition of a company from the perspective of its management2. trends in sales and expense 销售和费用的趋势 3. trends in cash flow 现金流的趋势4. business overview based on known trends5. Material events and uncertainties 重大事项和重大不确定性Quarterly or semiannual reportsupdated information on the major financial statements and footnotesSecurities and Exchange Commission (SEC) filings1. Form 8-K 重大事项公告： Acquisitions or disposals of major assets；Changes in its management；Changes in corporate governance2. Form 10-K 年报： Annual financial statements3. Form 10-Q 季报： Quarterly financial statements4. Form S-1： Registration statement filed prior to the sale of new securities to the public5. Form DEF-14A： Proxy statementsProxy statements1. require a shareholder vote2. Information about the board members, managements, compensation and the issuance of stock options.Corporate reports and press releases新闻稿Public relations，如社会责任公告书Other necessary informationInformation on economic conditions, industry and competitors.AuditingObjective: auditor provides reasonable assurance that the financial statements are fairly presented.A principal agent relationshipThe standard auditors opinionUnqualified (clean) opinion: free from material errors, fraud, or illegal actsQualified opinion: if statements make any exceptions to the accounting principles, can issue qualified opinion and explain the exceptionsAdverse opinion: if not presented fairly or not materially conforming to accounting standards.Disclaimer of opinion: If the auditor is unable to express an opinion (e.g., in the case of a scope limitation), a disclaimer of opinion is issued.Financial statement analysis frameworkPhaseSources of infoOutput1. Articulate the purpose and context of the analysisNature Needs & concernGuidelinesStatement of purposes and objectivesA list of specific questionsTimetable & budgeted resources2.Collect dataFinancial dataDiscussionVisitsOrganized F/SFinancial data tableComplete questionnaires3.Process dataData from previous phaseAdjusted F/SCommon size statementsRatios & Forecasts4.Analyze/interpret the processed dataInput dataProcessed dataAnalytical results5.Conclusions & recommendationsAnalytical resultsAnalytical reportsrecommendation6.Follow upPeriodically repeatingUpdated reports & recommendations各个科目Assets1. Cash and cash equivalents: Liquid securities with maturities of 90 days or less are considered cash equivalents2. Accounts receivable. Accounts receivable often have an allowance for bad debt expense or allowance for doubtful accounts as a contra account.3. Inventory4. Financial assets such as marketable securities.更长期的债券或股票5. Prepaid expenses，比如租金，是预付的6. Property, plant, and equipment （PP&E，即机器、厂房和设备）. Includes a contra-asset account for accumulated depreciation. 注意，美国土地是不折旧的，中国是要折旧的。7. Investment in affiliates accounted for using the equity method. （投资比例大于20%的，进这里，小于20%的，进Financial assets）8. Deferred tax assets.9. Intangible assets. Such as patents, trademarks, licenses, and goodwill. Except for goodwill, these values may be reduced by accumulated amortization.Liability1. Accounts payable and trade payables.2. Financial liabilities such as short-term notes payable.3. Unearned revenue. Items that will show up on future income statements as revenues.4. Income taxes payable. The taxes accrued during the past year but not yet paid.5. Long-term debt such as bonds payable.6. Deferred tax liabilities.7. Beginning balance allowance + Bad expenses write-offs = Ending balance allowance Bad debt 会增加 allowance for debtful accounts（contra-assets accounts）Bad debt 注销会减少 gross receivable and allowance accountOwnersequity1. Capital. Par value of common stock.2. Additional paid-in capital. Proceeds from common stock sales in excess of par value. （对比面值溢价的部分） (Share repurchases that the company has made are represented in the contra account treasury stock.)Capital 和 Additional paid-in capital是股东最早出资的部分。若一个公司发行1000股，股票面值是1块，股票市场价值20块，那么capital就20000，additional paid-in capital 就是19000。3. Retained earnings. Cumulative net income that has not been distributed as dividends.4. Other comprehensive income.(主要是资产负债表里面有些项目以公允价值计量，造成的误差，这种误差不调利润表，直接调权益) Changes resulting from foreign currency translation, minimum pension liability adjustments, unrealized gains and losses from cash flow hedging derivatives, or unrealized gains and losses from available-for-sale.组成Other comprehensive income的四个部分，在GAAP里面：1. Foreign currency translation：合并外国子公司报表时的货币转换导致的差异，如果是汇总形成的差异，叫做transaction，是进利润表。这个translation只进股东权益。2. Minimum pension liability adjustments(DB在，DC不在)：养老金：DC，defined contribution, 社会来支付社保，跟公司没关系； DB, defined benefit，公司来支付养老金3. Unrealized gains and losses from cash flow hedging derivatives: 如果unrealizedcash flow有一个不符合，就进Income Statement，与这里的cash flow相对的就是fair value4. Unrealized gains and losses from available-for-sale: 金融资产分为三类，一是available-for-sale，二是held to maturity, 三是trading security在IFRS里面，还多了一项：certain changes in the value of long-lived assets that are measured using the revaluation model rather than the cost model总体来说，相对长期的进入OCI，相对短期的进入I/SExpenses1. Cost of goods sold(即COGS)，主要包括原材料、工人工资等SalesSales-COGS(含了生产过程的折旧和摊销)-COGS(不含D&A的)=gross profit-SG&A(不含D&A的)-SG&A(含了销售和管理过程的折旧和摊销)-D&A=operating profit=operating profit+Other income/expense+Other income/expense=EBIT=EBIT-Interest-Interest=EBT=EBT-Tax-Tax=net income=net income2. Selling, general, and administrative expenses（即SG&A）. These include such expenses as advertising, management salaries, rent, and utilities.3. Depreciation and amortization. To reflect the using up of tangible and intangible assets. 固定资产是折旧，无形资产是摊销4. Tax expense.5. Interest expense.6. Losses. Decreases in assets from transactions incidental to the firms day-to-day activities.RevenueAssets =Liabilities+Contributed capital（这个capital是广义的）+Beginning retained earnings+ Revenue- Expenses- Dividend所有的Balance sheet科目，都符合BASE法则：B + A S = EBeginning + Addition Subtraction = Ending比如： 期初RE + NI DIV（declare的） = 期末RE如果declare之后的没发，那就是div payableCash received in advanceUnearned revenueCash paid in advancePrepaid expense Cash received in arrearsAccrued revenueCash paid in arrearsAccrued expenseFlow of information in an accounting systemSources of documents 原始文件Day books/ General Journal日记账listing of all the journal entries, by daysGeneral Ledger总分类账Sorts the entries in the general journal by account. Debit借，Credit贷Trial Balance试算平衡Financial Statements财务报表I/S报表Net income =(revenues - ordinary expenses) + (other income - other expense) + (gains losses)RevenueRevenue less adjustments for estimated returns and allowances is known as net revenue.Gross and Net Reporting of Revenue：gross revenue reporting, the selling firm reports sales revenue and cost of goods sold revenue reporting, only the difference in sales and cost is reported. While profit is the same, sales are higher using gross revenue reporting.注意把net revenue reporting与net revenue分开理解The following criteria must be met in order to use gross revenue reporting under U.S. GAAP.7 The firm must:1. Be the primary obligor under the contract.2. Bear the inventory risk and credit risk.3. Be able to choose its supplier.4. Have reasonable latitude to establish the price.Expenses1. Include cost of goods sold, operating expenses, interest, and taxes.2. By nature: Presenting all depreciation expense from manufacturing and administration together in one line of the income statement.3. By function: Combining all costs associated with manufacturing (raw materials, depreciation, labor, etc.) as cost of goods sold.Gain or lossDifference between the sales price and book value is reported as a gain or loss on the income statement.Non-controlling interestIf a firm has a controlling interest in a subsidiary, the pro rata share of the subsidiarys income not owned by the parent is reported in parents income statement as the non-controlling interest (also known as minority interest or minority owners interest).这其实是属于股东权益Gross profitGross profit = Revenue COGS l In a single-step statement, all revenues are grouped together and all expenses are grouped together.l A multi-step format includes gross profit, revenues minus cost of goods sold.l operating profit在90%的情况下是与EBIT相等的，要注意只有不考虑Other income/expense才一样SalesSales-COGS(含了生产过程的折旧和摊销)-COGS(不含D&A的)=gross profit-SG&A(不含D&A的)-SG&A(含了销售和管理过程的折旧和摊销)-D&A=operating profit=operating profit+Other income/expense+Other income/expense=EBIT=EBIT-Interest-Interest=EBT=EBT-Tax-Tax=net income=net incomel Subtracting interest expense and income taxes from operating profit results in the firms net income, sometimes referred to as earnings or the bottom line.I/S报表ItemsThe pointsNet revenuesThe top line-COGS(Cost of goods sold)=Gross profit-Other operating Expenses (SG&A)=Operating income+/-Other income and revenues/expense=EBIT-Financing Costs即interest=EBTThe best indicator of future earnings+/-Unusual or Infrequent Itemsl nonrecurring items，Either unusual or infrequent but not both, 要注意or；l “above the line” and pretax basisl GL from sales of the assets or part of business.l Impairments（减损）, write-offs（报废）, write-downs（减值）, restructuring costs（重组）=Pretax income-Income tax expense=Net incomeThe bottom line+/-Income from discontinuing operations(net of tax)l 一定是可独立运营的部门或子公司，生产线不算l The time between l Any income or loss from discontinued operations, during the Phase out period. l Phase out period = Measurement date 决定日与 Disposal date处置日 之间l Thecompanywillaccrueanyestimatedlossduringthephaseoutperiodandanyestimatedlossonthesaleofthebusiness.l Anyexpectedgainonthedisposalcannotbereporteduntilafterthesaleiscompleted.+/-Extraordinary Items(net of tax)Only GAAPl Both unusual and infrequent:l 1. Loss from expropriation of assets; 资产被充公l 2. Gains or losses from early retirement of debt; 最好补充说明：不准备提前还的债务，被提前还造成的利得或损失l 3. Uninsured losses from natural disasters. 没被保险所cover的自然灾害损失，最好补充说明：是极罕见的灾害=Net Incomel 原本Accounting changes放在I/S，现在放在了footnotes，主要是包括：l 1. Accounting principle (=accounting methods, might be retrospective). 追溯l 2. Accounting estimate (prospective and not a below line item). 不用追溯l 3. 之前有error的，要restate financial statement; Notes disclos