cga fa2 完整课件汇总（9章全）

Lesson1 Financial reporting and accounting concepts,Learning objectives,Describe the international accounting standard-setting process. (3)Describe the attempts to harmonize accounting standards throughout the world. (3)Identify financial statement users and their needs, and describe how users needs are usually satisfied. (1)Explain the importance of ethical behaviour in financial reporting. (2)Evaluate whether accounting practices properly reflect the underlying assumptions and qualitative characteristics of accounting information. (1),Learning objectives,Evaluate whether measurement principles are correctly applied and apply recognition criteria.(1).Determine whether an item meets the definition of a financial statement element.(1).Exercise professional judgment in accounting situations. (2)Perform all steps of the accounting cycle and describe the interrelationships between the financial statements.,Harmonization,Harmonization means that standard-setting bodies around the world would strive to eliminate differences in standards for the same economic event.,Recognition,Recognition means the actual recording of the monetary amount of the element in the appropriate financial statement.,TOPIC 1.1 The environment of accounting,Accounting is the process of identifying ,measuring, recording and communicating financial information about an economic entity to interested user groups.,Financial accounting VS. Management accounting,Financial accounting is designed to provide information to external users.Management accounting is designed to provide information to internal users.,Financial Accounting provides information to decision makers who are not involved in the day to day operations of the organization.Financial reports should be prepared on a comparable and consistent basis.,As a result of the need for consistent and comparable external financial reporting, a somewhat standardized system of financial accounting has developed over the years. This standardized system is referred to as generally accepted accounting principles,Necessity of IFRS,Globalization demands a single set of high-quality international accounting standards.LN1 P4Chapter P6,Global Markets,Significant number of foreign companies are found on national exchanges.,TOPIC 1.2 Financial statement users and objectives of financial reporting,Objective: Provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers.,Capital Providers (Investors),Investors are the primary user group.,General-Purpose Financial Statements,Provide financial reporting information to a wide variety of users. Provide the most useful information possible at the least cost.,Greater emphasis is being placed on the quality of earnings information rather than simply the numbers that result from GAAP accounting.cash flow earnings are considered to better represent quality of earnings.There is a trend to require management to provide more information to allow users to determine the quality of earnings reported in the financial statements.,TOPIC1.4 Accounting assumptions and qualitative characteristics,Accounting assumptions,Entity conceptAccrual basis of accounting Time- period assumption Going concern assumption,Entity concept,Accounting reports may be prepared for any separate entity whether or not it is a separate legal entity.,Time-Period Assumption,Time-Period Assumption: Meaningful information can be assembled and reported for a time period that is less than the enterprises life span.Time-Period Assumption is closely related to the accrual accounting assumption.,Going concern assumption,The enterprise will continue in existence for the foreseeable future.This assumption provides a conceptual basis for many of the measurement methods used in accounting.Further analysis LN1 P10,Accrual basis of accounting,The accrual basis of accounting specifies that economic events and financial transactions are recorded in the financial statements in the period in which they have their primary economic impact, and not necessarily when cash is received or paid.,accrual basis versus the cash basisExample,Suppose a used-car dealer starts business in October of a particular year. The following are the significant transactions that the used-car dealer engages in over the next three months.Three used cars (A, B, and C) are purchased in October. The used-car dealer pays 12,000 cash for car A and 14,000 cash for car B in October. The 15,000 purchase price for car C is paid in November. No cars are sold by the dealer in October. In November, the used-car dealer sells cars A and C for 20,000 and 22,000 respectively. The customers pay for these purchases in December. Car B is sold in December for 18,000 and the customer pays cash at the time of sale.,Continued,Cash Accounting October November December TotalCash received 0 0 60,000 60000Cash paid 26,000 15,000 0 41,000Profit (Loss) ( 26,000) ( 15,000) 60,000 19,000,Continued,Accrual Accounting October November December Total Income 0 42,000 18,000 60,000Cost of cars sold 0 27,000 14,000 41,000Profit (Loss) 0 15,000 4,000 19,000,Fundamental qualities,Relevance Faithful representation.,Relevance is one of the two fundamental qualities that make accounting information useful for decision-making.,Relevance,Relevance,Confirmatory value means that the information in the financial statements should confirm the companys past predictions or actions.,Faithful representation means that the numbers and descriptions match what really existed or happened.,Faithful Representation,Completeness,Completeness means that significant information must be included in the preparation of financial statements.,Neutrality,Neutrality means the information in the financial statements should not be biased; the information should not be designed to achieve a particular outcome on the part of the decision-maker.particular outcome（example)：Income maximizationIncome minimizationBig bathIncome smoothing,Enhancing qualities,ComparabilityVerifiabilitytimeliness,Verifiablity,Verifiablity occurs when independent measurers, using the same methods, obtain similar results.,Comparability,For accounting information to be useful, it must be comparable in two ways:A company must present its financial information in a consistent manner from one accounting period to the next.The presentation of financial information must be consistent across firms.,The requirements of comparability,Entities should disclose their accounting policies, especially where alternatives exist.The entities must disclose every change in accounting policy from that of a prior period and outline the effect of that change on the firms performance.,Topic 1.5 Measurement methods and recognition criteria,Measurement methods,Valuation methods for the measurement of financial statementsHistorical costCurrent costNet Realizable valuePresent valueFair value,Measurement of financial elements is important as the valuation of the item determine both the time and magnitude of income. LN1 P12,Current cost,Under this method of measurement: Assets are valued at the amount of consideration that would have to be given up currently to acquire the same or equivalent asset.Liabilities are valued at the undiscounted amount of consideration that would have to be given up currently to settle the liability.,Current cost,A piece of land may have originally been acquired for 100,000. If it would now cost 140,000 to acquire a similar piece of land, the land would be valued at 140,000 in the statement of financial position under the current cost measurement basis. If an entity originally issued bonds payable for 10,000,000 and they were now trading in the market for 10,150,000 they would be recorded in the statement of financial position at 10,150,00 under the current cost measurement basis.,Realizable value,Realizable value measurement method is similar to current cost, except assets are valued at the considered amount of an asset if it is sold or otherwise disposed of ,rather than the replacement cost.,Fair value,The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date .,Present value,Under this method of measurement, both assets and liabilities are valued at the discounted value of the expected future cash flow from, or to, the item.,Revenue recognition principle,Revenue should be recognized when the criteria (definition, measurement, and probability) have been met.,Recognition criteria -sales revenue,For a sale of goods, revenue is to be recognized only when all of the following criteria have been satisfied: the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity; andthe costs incurred or to be incurred in respect of the transaction can be measured reliably.,Expense recognition (Matching ),Expenditures that create future verifiable economic benefits are recorded as an asset and expensed as used. while those that either create a current benefit or do not create a benefit are immediately expensed.,Elements of financial statements,Asset,An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.,Liability,A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.A liability may exist even when the present obligation is not known with certainty.,Equity,Equity is “the residual interest in the assets of the entity after deducting all its liabilities.,Income,Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.Income includes both revenue and gains.,Expenses,Expenses is decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.Expense includes expenses incurred in the normal course of business and losses.,Notice,The difference between revenues and gains and between expenses and losses is the nature of the activity that gave rise to them.,Presentation complete!,Lesson 2 Statement of comprehensive income and statement of financial position,Learning objectives,Differentiate between economic income and accounting income. (2)Prepare a statement of comprehensive income in good form，including proper presentation of net income and other comprehensive income.(1)Describe the accounting treatment of discontinued operations and calculate amounts.(1)Calculate the earnings per share figure and explain its relevance.(2)Prepare a statement of changes in equity in good form.(1)Prepare a statement of financial position in good form. (1)Describe the proper presentation for accounting changes and accounting errors.(2)Describe the type of information typically disclosed in the notes to the financial statements.(2),Topic 2.1 Nature of income,Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Includes: all revenues and gains, expenses and losses reported in net income, and all gains and losses that bypass net income but affect equity (other comprehensive income).,Comprehensive Income,Other comprehensive income,Other comprehensive income comprises items of income and expense that are not recognized in profit or loss as required or permitted by IFRSs.,Other Comprehensive Income,Unrealized gains and losses on available-for-sale securities.Translation gains and losses on foreign currency.Plus others LN2 P2,+,Reported in Equity,Comprehensive Income,Net Income,Alternative viewpoints of profit,Accounting profit is defined as the difference between revenues and expenses for a period of time.Economic profit is defined as the maximum amount of real wealth that an owner of a business can remove from the business during a period of time and leave the business exactly as well off as it was at the beginning of the period.,Topic 2.2 Presentation of the statement of comprehensive income,Evaluate past performance.,Income Statement,Help assess the risk or uncertainty of achieving future cash flows.,Predicting future performance.,Usefulness,Companies omit items that cannot be measured reliably.,Income Statement,Limitations,Income measurement involves judgment.,Income is affected by the accounting methods employed.,Other Reporting Issues,Comprehensive IncomeTwo-statement format: Comprehensive Income,Other Reporting Issues,Comprehensive IncomeCombined statement format: Comprehensive Income,IAS 1 requires inclusion of the following line items on the face of the statement of comprehensive income: (a) revenue;(b) finance costs;(c) share of the profit or loss of associates and joint ventures accounted for using the equity method;(d) tax expense;,(e) a single amount comprising the total of (i) the post-tax profit or loss of discontinued operations and (ii) the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group (s) constituting the discontinued operation;,(f) profit or loss;(g) each component of comprehensive income classified by nature (excluding amounts in (h);(h) share of the other comprehensive income of associates and joint ventures accounted for using the equity method; and(i) total comprehensive income.,Reporting Within the Income Statement,Financing costs must be reported on the income statement.,Reported byNature, orFunction,Expense Classification(LN2 P8),Expense Classification,Illustration: Assume that the accounting firm of Telaris Co. provides audit, tax, and consulting services. It has the following revenues and expenses.,Expense Classification (Nature-of-Expense Approach),Expense Classification (Function-of-Expense Approach),The function-of-expense method is generally used in practice although many companies believe both approaches have merit.,Format of the Income Statement,Intermediate Components,Common for companies to present some or all of these sections and totals within the income statement.,Illustration,Format,Includes all of the major items in the list above, except for discontinued operations.,Reporting Within the Income Statement,Allocation to Non-Controlling Interest,If a company prepares a consolidated income statement that includes a partially own subsidiary. IFRS requires that net income of the subsidiary be allocated to the controlling and non-controlling interest. This allocation is reported at the bottom of the income statement after net income.,(amounts given),Topic 2.3 Discontinued operations,The purpose of the separate disclosure of discontinued operations is to alert the reader that these items are not expected to exist in the future.,Discontinued Operations,A component of an entity that either has been disposed of, or is classified as held-for-sale, and:Represents a major line of business or geographical area of operations, orIs part of a single, co-coordinated plan to dispose of a major line of business or geographical area of operations, orIs a subsidiary acquired exclusively with a view to resell.,Held for sale asset,An entity shall classify a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally through a sale transaction ratherthan through continuing use.,Example,Assume that Softso Inc has experienced losses with certain brands in its beauty-care products group. Softso decides to sell that part of its business .It will discontinue any continuing involvement in the product group after the sale, and reports the product group as discontinued operation.Assume Softso decides to remain in the beauty-care business but will discontinue the brands that experienced losses. Softso does not report classify any gain or loss on the sale of the brands as a discontinued operation.,Reporting within the statement of comprehensive income- discontinued operations,As specified in paragraph 33 of IFRS 5,Information which must be provided with respect to the income statement impact of a discontinuance includes: (a) the post-tax profit or loss of discontinued operations and (b) the post-tax gain or loss recognized on the measurement to fair value less costs to sell or on the disposal of the assets or disposal group (s) constituting the discontinued operation.The analysis may be presented in the notes or in the statement of comprehensive income.（LN2 P10）,An entity is required to provide the IFRS 5 disclosures beginning with the year in which the component is classified as held for sale.,Total loss on discontinued operations800,000,Illustration: Multiplex Products, a highly diversified company, decides to discontinue its electronics division. During the current year, the electronics division lost $300,000 (net of tax). Multiplex sold the division at the end of the year at a loss of $500,000 (net of tax).,Income from continuing operations$20,000,000,Discontinued operations:,Loss from operations, net of tax300,000,Los