中级财务会计英文Accouting-Principles-----Financial-Accounting PPT课件

1 FinancialAccounting 5e JohnWiley Sons Inc Weygandt Kieso Kimmel 2 CHAPTER7ACCOUNTINGPRINCIPLES STUDYOBJECTIVESAfterstudyingthischapter youshouldunderstand 3 STUDYOBJECTIVE1GAAP CONCEPTUALFRAMEWORK GAAPisasetofstandardsandrulesrecognizedasageneralguideforfinancialreportingsupportedby FASBDevelopsGAAP SECMandatesGAAP Collaborate 4 GAAP CONCEPTUALFRAMEWORK TheFASBdevelopedaCONCEPTUALFRAMEWORKtoresolveaccountingandreportingproblems ConceptualFramework FinancialReportingObjectives QualitativeCharacteristics FinancialStatementElements AssumptionsPrinciplesConstraints 5 STUDYOBJECTIVE2FINANCIALREPORTINGOBJECTIVES Toprovideinformation Assets Liabilities Stockholders Equity 6 STUDYOBJECTIVE3QUALITATIVECHARACTERISTICS Usefulinformationis RELEVANTRELIABLECOMPARABLECONSISTENT 7 Makesadifferenceinadecision Haspredictivevalueandfeedbackvalue Istimely RELEVANCE RELEVANTINFORMATION 8 RELIABILITY RELIABLEINFORMATION Isdependableandverifiable Isfreeoferrorandbias Isafaithfulrepresentation Isfactual 9 COMPARABILITY Accountinginformationfromtwosimilarcompaniesshouldbecomparable Differentcompaniesinsimilarindustriesshouldusethesameaccountingprinciples GM FORD COMPARABLEINFORMATION 10 CONSISTENCY 2000 2001 2002 Companiesshouldusethesameaccountingprinciplesfromyeartoyear Changesinaccountingprinciplesmustbejustifiable CONSISTENTINFORMATION 11 STUDYOBJECTIVE4BASICACCOUNTINGASSUMPTIONS Monetaryunit Economicentity Timeperiod Goingconcern 12 Onlytransactiondatathatcanbeexpressedintermsofmoneybeincludedintheaccountingrecords MONETARYUNITASSUMPTION Hiringanemployee Payinganemployee Donotrecord Record 13 Theactivitiesoftheentityaretobekeptseparateanddistinctfromtheactivitiesoftheownerandallothereconomicentities ECONOMICENTITYASSUMPTION Economiceventscanbeidentifiedwithaparticularunitofaccountability BMW Benz 14 Theeconomiclifeofabusinesscanbedividedintoartificialtimeperiods QTR1QTR2QTR3QTR4 JANFEBMARAPRMAYJUNJULAUGSEPTOCTNOVDEC TIMEPERIODASSUMPTION 15 Theenterprisewillcontinueinoperationlongenoughtocarryoutitsexistingobjectives GOINGCONCERNASSUMPTION NOW FUTURE 16 STUDYOBJECTIVE5BASICACCOUNTINGPRINCIPLES REVENUERECOGNITIONMATCHINGFULLDISCLOSURECOST Assets Liabilities Stockholders Equity 17 REVENUERECOGNITIONPRINCIPLE Revenueshouldberecognizedintheaccountingperiodinwhichitisearned Whenasaleisinvolved revenueisrecognizedatthepointofsale 18 Expensesarematchedwithrevenuesintheperiodinwhicheffortsaremadetogeneraterevenues MATCHINGPRINCIPLE Typesofcosts ExpiredCostsGeneraterevenuesonlyinthecurrentaccountingperiod UnexpiredCostsGeneraterevenuesinfutureaccountingperiods 19 CostIncurred Asset Expense Operatingexpensescontributetotherevenuesoftheperiodbuttheirassociationwithrevenuesislessdirectthanforcostofgoodssold BenefitsDecrease ProvidesFutureBenefit ProvidesNoApparentFutureBenefits EXPENSERECOGNITIONPATTERN 20 Businessinsightonpage298 21 FULLDISCLOSUREPRINCIPLE Body Data Notes SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIESUSUALLYTHEFIRSTFOOTNOTE Requiresthatcircumstancesandeventsthatmakeadifferencetofinancialstatementusersaretobedisclosedinoneoftwoplaces 22 Isthemoredisclosurethebetter 23 eBusinessinsightonpage299 24 COSTPRINCIPLE COSTisrelevantbecauseitrepresents PRICEPAIDorASSETSSACRIFICEDorCOMMITMENTMADE COSTisreliablebecauseitis OBJECTIVELYMEASURABLEandFACTUALandVERIFIABLE Requiresassetstoberecordedatcost 25 Whataresomecriticismofcostprinciple 26 RevenueRecognition Duringproduction Atendofproduction Atpointofsale Attimecashreceived Revenueshouldberecognizedintheaccountingperiodinwhichitisearned generallyatpointofsale Matching CostsMatchingSalesRevenue Expensesshouldbematchedwithrevenues CEMENT Cost Assetsshouldberecordedatcost FullDisclosure Circumstancesandeventsthatmakeadifferencetofinancialstatementusersshouldbedisclosed FinancialStatements BalanceSheet IncomeStatement RetainedEarningsStatement CashFlowStatement BASICACCOUNTINGPRINCIPLES 27 Forsmallamounts GAAPdoesnothavetobefollowed Conservatism Whenindoubt choosethesolutionthatwillbeleastlikelytooverstateassetsandincome BASICACCOUNTINGCONSTRAINTSStudyObjective6 28 Examplesofmaterialityconstraint 29 Examplesofconservatismconstraintswelearned 30 SUMMARYOFCONCEPTUALFRAMEWORK ObjectivesofFinancialReporting Assumptions Principles OperatingGuidelines QualitativeCharacteristicsofAccountingInformation ElementsofFinancialStatements 31 REVIEWQUESTION Valuingassetsattheirliquidationvalueratherthantheircostisinconsistentwithwhichofthefollowing TimeperiodassumptionMatchingprincipleGoingconcernassumptionMaterialityconstraint Answer GoingconcernassumptionLiquidationvalueswouldsuggestthecompanyisgoingoutofbusiness 32 STUDYOBJECTIVE7ANALYZINGCLASSIFIEDFINANCIALSTATEMENTS ClassifiedBalanceSheet 33 Howdothebalancesheetofaproprietorshipandpartnershiplooklike 34 ANALYZINGCLASSIFIEDFINANCIALSTATEMENTS ClassifiedIncomeStatement AlsoincludedaretaxexpenseandEPS 35 INCOMESTATEMENTWITHTAXEXPENSE Leads IncIncomeStatementFortheYearEndedDecember31 2006 36 Adjustingentryforincometax 37 Usingthefollowinginformation computeoperatingexpensesandincometaxexpense REVIEWQUESTION Grossprofit incomefromoperations operatingexpenses584 600 240 000 344 600Incometaxexpense Incomebeforetaxes NetIncome276 000 179 400 96 600 38 EARNINGSPERSHARE EPS Netincome Commonsharesoutstanding AssumingLeads Inc had54 600sharesofcommonstockoutstanding EPSwouldbe 109 200 54 600 2 00 39 EPSisreportedbelownetincome 40 FINANCIALSTATEMENTSGENLYTE INC Genlyte Inc BalanceSheetDecember31 2006 ThefollowingratioanalysisusesGenlytedata 41 FINANCIALSTATEMENTSGENLYTE INC Genlyte Inc IncomeStatementFortheYearEndedDecember31 2006 42 Threemajorcharacteristicsareevaluated ANALYZINGFINANCIALSTATEMENTS LIQUIDITY PROFITABILITY SOLVENCY Eachcanbeevaluatedbyfinancialstatementratios 43 LIQUIDITY LIQUDITYRATIOSmeasureacompany sAbilitytopayitsmaturingobligationsandmeetunexpectedneedsforcash CurrentRatioCurrentassets Currentliabilities WorkingcapitalCurrentassets Currentliabilities 156 000 70 000 2 23to1 156 000 70 000 86 000 44 Iscurrentrationthehigherthebetter 45 Profitability ROS Profitmarginpercentage 46 Businessinsightonpage307 47 PROFITABILITY PROFITABILITYRATIOSmeasuretheoperatingsuccessofacompanyforagivenperiodoftime ROA returnonassets NetIncome TotalAssets 14 000 244 000 5 7 ROE returnonequity NetIncome CommonEquity 14 000 60 000 23 3 48 SOLVENCY SOLVENCYRATIOSmeasuretheabilityofacompanytosurviveoverthelongterm DTA debttototalassets TotalDebt TotalAssets 184 000 244 000 75 4 DTE debttoequity TotalDebt TotalEquity 184 000 60 000 3 06to1 49 Solvency Assetliabilitymanagement 50 Worldmarketsarebecomingincreasinglyintertwined Firmsthatconductoperationsinmorethanonecountrythroughsubsidiaries divisions orbranchesinabroadarereferredtoasmultinationalcorporations InternationaltransactionsmustbetranslatedintoU S dollars STUDYOBJECTIVE8INTERNATIONALOPERATIONS 51 Internationalinsightonpage309 Uniformityinstandards IASB 52 Demonstrationproblem1 53 Demonstrationproblem2 54 Homework Problems P7 1A 55 Exercises Toberelevant accountinginformationmusta improvethecompany sinternalcontrol b bepresentedonthebalancesheet c berecordedathistoricalcost d becapable