中级财务会计双语第一章

1、中级财务会计双语第一章第一页，共64页。Financial Accounting Environment Providers of financial informationProfit-oriented companiesNot-for-profit entitiesHouseholdsFinancial accountingGovernmental and nonprofit accounting第二页，共64页。Financial Accounting Environment Users of financial information (external)pInvestors pCre

2、ditors (banks, bondholders)pEmployees pLabor unionspCustomerspSupplierspGovernment regulatory agencies (Securities and Exchange Commission)pFinancial intermediaries (financial analysts, credit-rating organizations)Primary users第三页，共64页。Financial Accounting Environment Users of financial information

3、(external) Users of financial information (internal)pManagers, CFO, CEOpthe board of directorsFinancial AccountingManagerial Accounting第四页，共64页。Financial Accounting EnvironmentFinancial information: financial statements and related disclosure notesFinancial statements: Balance sheet or statement of

4、financial position The income statement or statement of operation The statement of cash flowsa. The statement of shareholders equity第五页，共64页。Objective of Financial Accounting The objective of financial accounting is to provide financial information about the reporting entity that is useful to presen

5、t and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers. Who: Reporting entity Do what: Provide financial information (useful in decision-making) To whom: Capital providers第六页，共64页。Objective of Financial Accounting Useful information:

6、Provide insight into future cash flow (future performance)helps decision makers identify the companys financial strengths and weaknesses and assess liquidity and solvency. Financial information (financial reports): three major financial statements第七页，共64页。Objective of Financial Accounting Capital pr

7、oviders: investors + creditors (lenders)Acquired capitalFrom creditors by borrowingFrom investors in exchange for ownershipLiability Shareholders equity第八页，共64页。Cash VS. Accrual Accounting Two accounting methods:Cash Basis AccountingAccrual Basis Accounting第九页，共64页。Cash Basis Accounting Cash Basis A

8、ccounting 收付实现制收付实现制 One of the accounting methods Revenue is recorded when cash is received, expenses are recorded when cash is paid out. Net operating cash flow=cash receipts-cash disbursement 净经营性现金流量净经营性现金流量=现金收入现金收入-现金支出现金支出 NOCF0 A major drawback: over short periods of time, operating cash flo

9、ws may not be indicative of the companys long-run cash-generating ability. 企业短企业短期的经营性现金流量可能不能很好反映其长期获取现金的能力。期的经营性现金流量可能不能很好反映其长期获取现金的能力。第十页，共64页。Cash Basis Accounting123TotalSales (on credit)100,000100,000100,000300,000Cash receipts50,000125,000125,000300,000Three years rent-60,00000-60,000salaries

10、-50,000 -50,000 -50,000-150,000Utilities -5,000-15,000 -10,000-30,000第十一页，共64页。Accrual Basis Accounting Accrual Basis Accounting One of the accounting methods Revenue is recorded when earned, expenses are recorded when incurred. Net income=revenues-expenses 净利润净利润=收入收入-费用费用 （or net loss if expenses

11、are greater than revenues.） Net income Net operating cash flow第十二页，共64页。Accrual Basis Accounting 123TotalRevenues100,000100,000100,000300,000Cash receipts50,000125,000125,000300,000Rent-20,000 -20,000 -20,000-60,000Salaries-50,000 -50,000 -50,000-150,000Utilities -10,000 -10,000 -10,000-30,000Net in

12、come第十三页，共64页。Exercise The company incurred utility costs of $35,000 in year one, and the insurance covers a three-year period.12Revenues170,000220,000Cash receipts160,000190,000Salaries-90,000-100,000Utilities -30,000 -40,000Purchase of insurance-60,0000第十四页，共64页。Qualitative Characteristics of Fina

13、ncial ReportsQualitative CharacteristicsDecision usefulnessRelevance相关性相关性Faithful representation如实反映如实反映OverridingobjectivePrimarycharacteristics第十五页，共64页。Qualitative Characteristics of Financial ReportsRelevance相关性相关性Faithful representation如实反映如实反映PredictiveValue预测价值预测价值ConfirmatoryValue验证价值验证价值Co

14、mpleteness完整性完整性Neutrality中立性中立性Free frommaterial error无重大错报无重大错报PredictiveValue预测价值预测价值Neutrality中立性中立性第十六页，共64页。Qualitative Characteristics of Financial ReportsQualitative CharacteristicsDecision usefulnessRelevance相关性相关性Faithful representation如实反映如实反映OverridingobjectiveComparability可比性可比性Verifiab

15、ility可验证性可验证性Timeliness及时性及时性Understandability可理解性可理解性EnhancingcharacteristicsPrimarycharacteristics第十七页，共64页。Constraints to Achieving Qualitative Characteristics Two constraints: 两个约束条件两个约束条件 Cost Effectiveness 成本效益原则成本效益原则s Segment reportMateriality 重要性重要性s Dollar amount of an item (bad debts)s Na

16、ture of an item (unlawful transaction) One practical justification: 一个实务判断一个实务判断Conservatism 谨慎性谨慎性第十八页，共64页。Elements of Financial Statements In America, it has 10 elements of financial statements. Assets Liabilities Equity (or net assets) Investments by owners 业主投资 Distributions to owners 业主派得Compr

17、ehensive income 综合收益 Revenues ExpensesGains 利得 Losses 损失第十九页，共64页。Elements of Financial Statements Assets Future economic benefits Obtained or controlled 拥有或控制拥有或控制Our company purchased a building. (obtain)Capital lease (control) Past transactions or eventsOur company is planning to purchase an equi

18、pment next year. (future transaction) 第二十页，共64页。Elements of Financial Statements Liabilities Future sacrifices of economic benefits Present obligations 现时义务现时义务Exp. Company A purchased $100,000 of inventories on credit from company B.Company A has the obligation to pay $100,000 to company B. Past tr

19、ansactions or events第二十一页，共64页。Elements of Financial Statements Equity (or net assets) shareholders equity or stockholders equity residual interest 剩余权益剩余权益 (equity=assets-liabilities). Exp. We open a new company. Its total assets are $10 million. All the assets are coming from two capital providers

20、: one part is from creditor, $4 million; the other part is from investor, $6 million.第二十二页，共64页。Elements of Financial StatementsAfter two years:$10 million$12 million$8 million from creditor$4 million from creditorliabilitiesIs it still $6 million?equityAt the beginning:$10 million$4 million from cr

21、editor$6 million from investorEquity is the residual interest, Equity=Assets- Liabilities=$12-$8=$4$6Stockholders equity is decreasing during two years.第二十三页，共64页。Elements of Financial Statements Revenues Inflows/enhancements of assets/settlements of its liabilities（收入的产生可以是现金流入（收入的产生可以是现金流入/资产的增加资产

22、的增加/负债的减少）负债的减少） Inflows: sell $1000 products in cash. Enhancements of assets: sell $1000 products on credit. Settlements of its liabilities: Company A planned to sell $1000 products to Company B. On Jan. 2, Company B paid $1000 to Company A in advance. On Jan. 10, Company A delivered the products t

23、o Company B.第二十四页，共64页。Elements of Financial Statements Revenues & Gains 收入&利得 They are all benefits for the company. Revenues are coming from the companys ongoing major or central operations. 收入来源于公司持续经营的收入来源于公司持续经营的主营业务主营业务。Exp 1. BMW sells $1000 million of cars on credit. Gains are coming

24、 from peripheral or incidental transactions of a company. 利得来源于公司的利得来源于公司的非主营活动非主营活动或偶然交易或偶然交易。Exp 2. BMW sold its old equipment, and got $6 million in cash.第二十五页，共64页。Elements of Financial Statements Expenses Outflows/using up of assets/incurrence of liabilities（费用的产生可以是现金流出（费用的产生可以是现金流出/资产的减少资产的减少

25、/负债的增加）负债的增加） Outflows: pay $1000 interest expense in cash. Using up of assets: $100 depreciation Incurrence of liabilities: on Jan. 31, the company should pay $1000 wages to employee, but wages will be paid on Feb. 4. 第二十六页，共64页。Elements of Financial Statements Expenses & Losses They are all de

26、crease in benefits for the company. Expenses are coming from the companys ongoing major or central operations. 费用来源于公司持续经营的主费用来源于公司持续经营的主营业务。营业务。 Losses are coming from peripheral or incidental transactions of a company. 损失来源于公司的非主营活动或偶损失来源于公司的非主营活动或偶然交易。然交易。Exp. Failure in lawsuit （诉讼败诉）（诉讼败诉）, it

27、cost the company $10 million (paid in cash).第二十七页，共64页。Recognition and Measurement concepts Two important concepts in accounting: Recognition 会计确认会计确认 Measurement 会计计量会计计量第二十八页，共64页。Recognition Recognition 会计确认会计确认 Refers to the process of admitting information into the basic financial statement. 将信

28、息加以记录并列入财务报表的过将信息加以记录并列入财务报表的过程。程。 Simply, “recognition” is which economic events should be recorded. Four criteria in “recognition”: 会计确认的四个标准会计确认的四个标准Definition MeasurabilityRelevanceReliability第二十九页，共64页。Recognition Definition 可定义性可定义性The item meets the definition of an element of financial state

29、ment. 被确定的项目应符合财务报表某个要素的被确定的项目应符合财务报表某个要素的定义。定义。Our company purchased an equipment today.Can bring future benefitsObtained by our companyResulting from past eventsThis item meets the definition of “which element”?The equipment meets the definition of “Assets”.第三十页，共64页。Recognition Measurability 可计量性

30、可计量性 The item has a relevant attribute measurable with sufficient reliability. 被确定的项目应具有相关的计量属性，足以充分被确定的项目应具有相关的计量属性，足以充分可靠地予以计量。可靠地予以计量。Our company purchased an equipment today.It cost $100 million.The equipment is measurable.第三十一页，共64页。Recognition Measurability 可计量性可计量性Our company hired an enginee

31、r (工程师工程师) today.But is the engineer measurable or not?Can bring future benefitsControlled by our companyResulting from past eventsThe engineer meets the definition of “Assets”.第三十二页，共64页。Recognition Relevance 相关性相关性 The information about it is capable of making a difference in user decisions. 被确定的会

32、计要素应当对信息的使用者有用。被确定的会计要素应当对信息的使用者有用。 Only the useful information should be recorded. (information must be relevant to the decision.)第三十三页，共64页。Recognition Reliability 可靠性可靠性 The information is representationally faithful, verifiable, and neutral. 被确定的会计信息是如实反映的、可验证的和不偏不倚被确定的会计信息是如实反映的、可验证的和不偏不倚的。的。第三

33、十四页，共64页。Measurement Measurement 会计计量会计计量 is the process of associating numerical amounts to the elements. 确定会计要素金额的过程。确定会计要素金额的过程。 Simply, “measurement” is: at what amount economic events should be measured? Two elements in “measurement”: 会计计量的两个要会计计量的两个要素素 Unit of measurement 计量单位计量单位 Attribute of

34、 measurement 计量属性计量属性第三十五页，共64页。Measurement Unit of measurement 计量单位计量单位The unit of measurement used in financial statements is nominal units of money without any adjustment for changes in purchasing power. 财务报表中财务报表中用名义货币作为计量单位，不调整不同时期货币的购买力。用名义货币作为计量单位，不调整不同时期货币的购买力。 Without considering the influe

35、nce of inflation 不考虑通货膨不考虑通货膨胀的影响胀的影响第三十六页，共64页。MeasurementAttribute of measurement 计量属性计量属性Some commonly-used attributes: 一些常用的计量属性一些常用的计量属性 Historical cost Net realizable value Present value Fair value第三十七页，共64页。Measurement Historical cost 历史成本历史成本The original cost (or the price) of an asset when

36、acquired by the company. 企业购置资产时的初始企业购置资产时的初始成本或买价。成本或买价。Exp. The equipment is purchased at the price of $100 million.$100 million is the historical cost.第三十八页，共64页。Measurement Net realizable value 可变现净值可变现净值Net realizable value is usually used to evaluate the inventory. 可变现净值常用于估计存货的价值。可变现净值常用于估计存货

37、的价值。Net realizable value of inventory=selling price of the inventory - estimated costs of completion disposal costs 存货净现值存货净现值=存货售价存货售价-至完工时估计至完工时估计将要发生的成本将要发生的成本-处置成本处置成本(销售费用销售费用)Exp. At a companys year end, inventory is expected to sell for $100, but it will take an additional $20 to complete and

38、 $10 of disposal costs.NRV=$100-$20-$10=$70第三十九页，共64页。Measurement Net realizable value 可变现净值可变现净值Net realizable value can also be used to measure the accounts receivable. 可变现净值也可用来衡量应收可变现净值也可用来衡量应收账款的价值。账款的价值。Net realizable value of AR=all the AR allowance for bad debts 应收账款净现值应收账款净现值=应收账应收账款总额款总额 坏

39、账准备坏账准备Exp. At a companys year end, the company has $1,000,000 of AR, and the allowance for bad debts is $100,000 in that year.NRV of AR=$1,000,000-$100,000=$900,000第四十页，共64页。Measurement Present value 现值现值The current worth of future cash flows given a specified interest rate. 在给定的利率水平下，未来的在给定的利率水平下，

40、未来的现金流量折现到现在时刻的价值。现金流量折现到现在时刻的价值。Exp. On Jan. 1, 2011, our company bought an equipment, we signed a note requiring $50,000 to be paid on Dec. 31, 2012. (suppose the annual interest rate is 10%.)On Jan. 1, was the equipment worth $50,000?$50,000 will be paid two years from now, we should use the pres

41、ent value as the cost of this equipment.The cost of equipment=$50,0000.8264=$41,320第四十一页，共64页。Measurement Fair value 公允价值公允价值The price that would be received to sell assets or paid to transfer a liability in an orderly transaction between market participants at measurement date. 公平交易中，熟悉情况的双方自愿进行的资产

42、交换和债公平交易中，熟悉情况的双方自愿进行的资产交换和债务清偿的金额。务清偿的金额。Companies usually value some of its financial assets and liabilities at fair value. 公司通常对金融资公司通常对金融资产和金融负债以公允价值入账。产和金融负债以公允价值入账。Exp. Our company bought 1000 shares of stock, the stock price is $10 per share.Fair value of the stock=$101000=$10,000第四十二页，共64页。F

43、our basic assumptions The economic entity assumption The going concern assumption The periodicity assumption The monetary unit assumption第四十三页，共64页。Economic Entity Assumption 经济主体假设经济主体假设 Economic Entity Assumption: all economic events can be identified with a particular economic entity. 记录的会计业务应为某个

44、特定的经济记录的会计业务应为某个特定的经济主体服务。主体服务。 From whose perspective 站在谁的角度站在谁的角度Exp. Dell sold 10 computers to KFC, KFC promised to pay $50,000 ten days later.From Dells perspective, $50,000 is accounts receivable. From KFCs perspective, $50,000 is accounts payable.第四十四页，共64页。Economic Entity Assumption 经济主体假设经济主

45、体假设 Economic Entity Assumption Legal entity & accounting entity 法律主体法律主体&会计主体会计主体Exp. Suppose Dell is a group company (集团公司集团公司). It has one parent (母公司母公司) and three subsidiaries (子公司子公司). One parent and three subsidiaries are four legal entities, also four accounting entities.Dell (the gro

46、up company) is not the legal entity but is the accounting entity. Legal entity is definitely the accounting entity, but accounting entity may not be the legal entity. 法律主体一法律主体一定是会计主体，但会计主体不一定是法律主体。定是会计主体，但会计主体不一定是法律主体。第四十五页，共64页。Economic Entity Assumption 经济主体假设经济主体假设 Economic Entity Assumption the

47、 distinction between the economic activities of owners and those of the company. Exp. Uncle Jim opened a company. He bought 10 computers for the company. He then spent $10 million to buy a house for personal use. In this case, buying 10 computers is the companys economic activity, which should be re

48、corded in accounting.Buying a personal house is uncle Jims economic activity, which should not be recorded in accounting.第四十六页，共64页。Economic Entity Assumption 经济主体假设经济主体假设p Exercise: right or wrong?p Don Smith is the sole owner of a company called Hardware City. The company recently paid a $150 util

49、ity bill for Smiths personal residence and recorded a $150 expense.第四十七页，共64页。Going Concern Assumption 持续经营假设持续经营假设 Going Concern Assumption: it is anticipated that a business entity will continue to operate indefinitely. 企业的生产经营活动将无限期地延续下去。企业的生产经营活动将无限期地延续下去。 historical costs & current liquidat

50、ion valuesExp. If we expect that the company will continue to operate forever, then we can measure all the assets using historical costs.But, if we know that the company will go bankrupt (破破产产) next year, then assets should be measured at their current liquidation values (当前清算价值当前清算价值). Exp. Depreci

51、ation If depreciation of a building covers 20 years, that means the company should operate at least 20 years.第四十八页，共64页。Periodicity Assumption 会计分期假设会计分期假设 The periodicity assumption allows the life of a company to be divided into artificial time periods to provide timely information. 会计分期假设将公司会计分期假

52、设将公司的持续经营活动人为地划分为若干个会计期间以提供的持续经营活动人为地划分为若干个会计期间以提供及时的会计信息。及时的会计信息。 Corporations should provide financial information to the market on a quarterly and annual basis. calendar year 日历年度日历年度 & fiscal year 会计年度会计年度In China, calendar year = fiscal yearIn America, fiscal year may ends at the end of Jan

53、uary.第四十九页，共64页。Monetary Unit Assumption 货币计量假设货币计量假设 The monetary unit assumption states that financial statement elements should be measured in terms of the United States dollar.In China, financial statement elements should be measured in terms of RMB.第五十页，共64页。Broad Accounting Principles 会计基本原则会计

54、基本原则 Four important broad accounting principles:The historical cost principleThe realization principle (also known as the revenue recognition principle)The matching principleThe full-disclosure principle第五十一页，共64页。Broad Accounting Principles 会计基本原则会计基本原则 Historical cost principle 历史成本原则历史成本原则It says

55、 asset and liability measurements should be based on the amount given or received in the exchange transaction. 企业的资产和负债在取得时应企业的资产和负债在取得时应该按实际成本计量。该按实际成本计量。Sometimes, a departure from historical cost valuation is allowed. 有时，资产的价值也可能偏离历史有时，资产的价值也可能偏离历史成本。成本。 Exp. Our company sells $10,000 products on

56、 credit. So, $10,000 is the historical cost for accounts receivable. One year later, we estimates $2,000 in bad debts. Then, AR should be valued at $8,000. (net realizable value)第五十二页，共64页。Broad Accounting Principles 会计基本原则会计基本原则Realization principle 收入实现原则收入实现原则 Two criteria should be satisfied bef

57、ore revenue can be recognized: 收入确认时应满足的两个条件收入确认时应满足的两个条件 The earnings process is judged to be complete or virtually complete. (the selling activity is finished) There is reasonable certainty as to the collectibility of the asset to be received. (almost 100% sure that we can receive the cash)第五十三页，共

58、64页。Broad Accounting Principles 会计基本原则会计基本原则Realization principle 收入实现原则收入实现原则Critical event before revenue can be recognized: 收收入可以被确认的入可以被确认的关键性事件关键性事件The goods or services sold to the buyer are delivered. p Exercise: right or wrong?p Davis Bicycle Company received a large order for the sale of 1,

59、000 bicycles at $100 each. The customer paid Davis the entire amount of $100,000 on March 15. however, Davis did not record any revenue until April 17, the date the bicycles were delivered to the customer.第五十四页，共64页。Broad Accounting Principles 会计基本原则会计基本原则p Exercise: right or wrong?p At the end of i

60、ts 2011 fiscal year, Dower Company received an order from a customer for $45,350. The product will be shipped early in 2012. Because the sale was made to a long-time customer, the accountant recorded the sale in 2011.p The Klingon Company sells farm machinery. Revenue from a large order of machinery from a new buyer was reco