会计学人大出版英文版第23版Chap001.ppt

1、Copyright 2011 by the McGraw-Hill Companies, Inc. All rights reserved.,McGraw-Hill/Irwin,Environment and Theoretical Structure of Financial Accounting,1,Questions,What is financial accounting? Who ? To whom? How?,Financial Accounting Environment,Profit-oriented companies Not-for-profit entities Hous

2、eholds,Providers of Financial Information,External User Groups,Investors Creditors Employees Labor unions Customers Suppliers Governmentagencies Financialintermediaries,Financial Accounting Environment,Relevant financial information is provided primarily through financial statements and related disc

3、losure notes. Balance Sheet Income Statement Statement of Cash Flows Statement of Shareholders Equity,The Economic Environment and Financial Reporting,A sole proprietorshipis owned by asingle individual.,A partnership isowned by two ormore individuals.,A corporation is ownedby shareholders.,Investme

4、nt-Credit Decisions A Cash Flow Perspective,Shareholders Receive Cash,Dividends Sale of Stock,Creditors Receive Cash,Interest Loan Repayment,Accounting information should help investors and creditors evaluate the amount, timing, and uncertainty of the enterprises future cash flows.,Cash versus Accru

5、al Accounting,Cash Basis Accounting Revenue is recognized when cash is received. Expenses are recognized when cash is paid.,OROROR,OR,Accrual Accounting Revenue is recognized when earned.Expenses are recognized when incurred.,Cash versus Accrual Accounting,Cash Basis Accounting Carter Company has sa

6、les on account totaling $100,000 per year for three years. Carter collected $50,000 in the first year and $125,000 in the second and third years. The company prepaid $60,000 for three years rent in the first year. Utilities are $10,000 per year, but in the first year only $5,000 was paid. Payments t

7、o employees are $50,000 per year.Lets look at the cash flows.,Cash versus Accrual Accounting,Cash Basis Accounting,Cash flows in any one year may notbe a predictor of future cash flows.,Cash versus Accrual Accounting,Accrual Basis Accounting,Net Income is considered a better indicator of future cash

8、 flows.,The Development of Financial Accounting and Reporting Standards,Concepts, principles, and procedures were developed to meet the needs of external users (GAAP).,Historical Perspective and Standards,Current Standard Setting,Supported by the Financial Accounting Foundation Five full-time, indep

9、endent voting members Answerable only to the Financial Accounting Foundation Members not required to be CPAs,Financial Accounting Standards Board,FASB Accounting Standards Codification,The objective of the codification project was to integrate and organize by topics all relevant accounting pronounce

10、ments into a searchable, online database.,Establishment of Accounting StandardsA Political Process,GAAP,Internal Revenue S,American Institute of CPA,Securities and Exchange C,American Accounting Association ,Governmental Accounting St

11、andards B,Financial Executives I,International Accounting Standards Board ,FASBs Standard-Setting Process,Board receives recommendations for projects. Board votes to add the project to its agenda . Board deliberates the issues at a series of public

12、meetings. Board issues an Exposure Draft (ED). Board holds a public roundtable meeting on the ED. Staff analyzes feedback and the Board re-deliberates the proposed revisions at public meetings . Board issues a Standards Update describing amendments to the Codification.,Toward Global Accounting Stand

13、ards,The main objective of the International Accounting Standards Board (IASB) is to develop a single set of high quality, understandable and enforceable global accounting standards to help participants in the worlds capital markets and other users make economic decisions.,Role of the Auditor,Audito

14、rs serve as independent intermediaries to help insure that management has appropriately applied GAAP in preparing the companys financial statements.,Financial Reporting Reform,As a result of numerous financial scandals, Congress passed the Public Company Accounting Reform and Investor Protection Act

15、 of 2002, (Sarbanes-Oxley Act). The goal was to restore credibility and investor confidence in the financial reporting process.,A Move Away from Rules-Based Standards?,Rules based accounting standards vs. objectives-oriented approach Objectives oriented (principles-based) approach stressed professio

16、nal judgment,Ethics in Accounting,For financial information to be useful, it should possess the fundamental decision-specific qualities of relevance and faithful representation. Management may be under pressure to report desired results and ignore or bend existing rules.,Analytical Model for Ethical

17、 Decisions,Determine the facts of the situation. Identify the ethical issue and the stakeholders. Identify the values related to the situation. Specify the alternative courses of action. Evaluate the courses of action. Identify the consequences of each course of action. Make your decision and take a

18、ny indicated action.,The Conceptual Framework,The Conceptual Framework has been described as a constitution, a coherent system of interrelated objectives and fundamental that lead to consistent accounting standards.,FASB Conceptual Framework (Statements of Financial Accounting Concepts) Objectives o

19、f Financial Reporting (SFAC No. 1) Qualitative Characteristics (SFAC No. 2) Elements of Financial Statements (SFAC No. 6) Recognition and Measurement (SFAC No. 5 and SFAC No. 7),The Conceptual Framework,FASB and IASB Joint Conceptual Framework Project,Eight Phases: Objective and Qualitative Characte

20、ristics Elements and Recognition Measurement Reporting Entity Presentation and Disclosure Framework for a GAAP Hierarchy Applicability to the Not-For-Profit Sector Remaining Issues,Objective To provide financial information that is useful to capital providers.,Elements,Recognition andMeasurementConc

21、epts,Constraints,FinancialStatements,The Conceptual Framework,Fundamental and EnhancingQualitative Characteristics,Relevance,Faithful representation,Qualitative Characteristics ofAccounting Information,Decision usefulness,Practical Boundaries (Constraints) to Achieving Desired Qualitative Characteri

22、stics,CostEffectiveness,Materiality,Elements of Financial Statements,Elements of Financial Statements,Recognition and Measurement Concepts,Recognition Process of admitting information into the basic financial statements,Definition Measurability Relevance Reliability,Measurement involves both the choice of a unit of measure and the choice of an attribute to be measured.,Underlying Assumptions and Accounting Principles,Evolution of Accounting PrinciplesThe