西方财务会计1.ppt

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,2020/8/6 Thursday,#,2026/11/5,西方财务会计1,Chapter 1,The Financial Accounting Conceptual Framework And The Accounting Equation,1.1 ACCOUNTING,A service activity-Provide useful information about economic entities to interested parties,And a measurement-communication activity-The usefulness of accounting information depends on effective measurement of the economic activities and effective communication of those measurements to users of that information,.,Accounting information and decision makers,Accounting,information,Financial,accounting,Management,Accounting,External,Decision,makers,Internal,Decision,makers,1.2 COMPARISON BETWEEN FINANCIAL AND MANAGEMENT ACCOUNTING,Management Accounting,-The process of developing and reporting accounting information for internal users who have direct access to the information preparing.,1.2 COMPARISON BETWEEN FINANCIAL AND MANAGEMENT ACCOUNTING,Financial Accounting,-The process of developing and reporting financial information for external users who do not have direct access to the information preparing which should be in accordance with General Accepted Accounting Principles(GAAP).,GAAP,Generally accepted accounting principles,are the measurement rules used to develop the information in financial statement.,They are those guidelines which indicate how to report economic events.,They consist of a number of concepts,principles and procedures,.,Generally Accepted Accounting Principles,The Securities and Exchange Commission,(,SEC,)has the authority to determine the financial statements to be provided to stockholders and the measurement rules applied in producing the statements.,The Financial Accounting Standards Board,(,FASB,)is currently recognized as the group responsible for establishing GAAP.,The Conceptual Framework,The Financial Accounting Standards Board(FASB)issues,Statements of Financial Accounting Concepts,.,These statements constitute the conceptual framework of accounting.,1.3 THE FASBS FINANCIAL ACCOUNTING CONCEPTUAL FRAMEWORK,1.3-1,Objectives of the Conceptual Framework,The Framework is to be the,foundation,for building a set of coherent accounting standards and rules.,The Framework is to be a,reference of basic accounting theory,for solving emerging practical problems of reporting.,1.3-2 Overview of the Conceptual Framework-Three levels of objectives elements and principles,The first level consists of,objectives,.,The second level explains,financial elements and characteristics of information.,The third level incorporates,recognition and measurement criteria.,Level I.,Basic Objectives of FinancialReporting,To provide information:,about economic resources,the claims on those resources and changes in them,that is useful to those making investment and credit decisions,such as present and future investors,creditors in assessing future cash flows;,And to individuals who reasonably understand business and economic activities.,Level II.Basic Elements And Qualitative Characteristics of Accounting information,Liabilities,:Probable future sacrifices of economic benefits,Equity,:Residual or ownership interest,Investment by Owners,:Increases in net assets,Distributions to Owners,:Decreases in net assets,Comprehensive Income:,Changes in equity from non-owner sources,Revenues,:Inflows from entitys ongoing operations,Expenses,:Outflows from entitys ongoing operations,Gains,:Increases in equity from incidental transactions,Losses,:Decreases in equity from incidental,transactions,Assets,:Probable future economic benefits,(i)Elements in Financial Statements,Elements in financial statements,Revenues,Expenses,income statement,Gains,Losses,Comprehensive income,Assets,Liabilities,balance sheet,Owners equity,Investment by the owners,Distributions to owners,REVENUES,Revenues,are the gross increases in owners(stockholders)equity that result from operating the business.,Generally,revenues result from the sale of merchandise,the performance of services,the rental of property,or the lending of money.,Revenues usually result in an increase in an asset.,EXPENSES,Expenses,are the decreases in,owners(stockholders),equity that result from operating the business.,They are the cost of assets consumed or services used in the process of earning revenue.,Examples of expenses include utility expense,rent expense,supplies expense,and tax expense.,When revenues exceed expenses,net income,results.,When expenses exceed revenues,a,net loss,results,.,Gains and losses(con.),Gains,:increase in equity from,incidental or peripheral,transactions not associated with the companys major or central lines of business,e.g.gain from disposal of fixed asset.,Gains and losses,Losses,:decrease in equity from,incidental or peripheral,transactions not associated with the companys major or central lines of business,e.g.loss from disposal of fixed asset.,ASSETS,Assets,are resources owned by a business.,They are things of value used in carrying out such activities as production,consumption and exchange.,The common characteristics possessed by all assets is the capacity to provide future services or benefits to the entities that use them.,LIABILITIES,Liabilities,are claims against assets.,They are existing debts and obligations.,Most claims of creditors attach to total enterprise assets rather than to the specific assets provided by the creditor,.,Owners equity,Claim on net assets,Owners equity=total assets-total liabilities,Different OE,Proprietorship,and partnership,:,Capital,(subdivisions:,Capital;Drawing,),Corporation,:,Stockholders equity,(subdivisions:,Paid-in capital;Retained earnings,),Investments by Owners,Revenues,Owners Equity,Drawing,Expenses,INCREASES AND DECREASES INOWNERS EQUITY,INCREASE,DECREASE,Investments by Stockholders,Revenues,Stockholders Equity,Dividends to,Stockholders,Expenses,INCREASES AND DECREASES INSTOCKHOLDERS EQUITY,INCREASE,DECREASE,(ii).Qualitative Characteristics of Accounting Information,1.Primary qualities are,Relevance,and,Reliability,of accounting information.,Relevance of information,means“information,c,apable of making a difference in a decision context.”,The information must be,timely,to be relevant.,The information should have,predictive value,:(be helpful in making predictions about ultimate outcomes of past,present and future events).,The information should have,feedback value,(helps users to confirm prior expectations.),Information is,reliable,when it can be relied on to represent the true,underlying situation,.,To be reliable,information must be,:,*,verifiable,*,faithful,and,*,neutral,2.Secondary characteristics are:,comparability and consistency,of reported information.,For information to be,c,omparable,it must be:,1)measured and reported in a similar manner for different enterprises.,2)useful in the allocation of resources to the areas of greatest benefit.,3)useful to users in identifying real differences between enterprises,.,Accounting information is,consistent,if,the same accounting principles are applied in a similar manner from one period to the next.,Accounting principles may be changed,if the change results in better reporting.,If principles are changed,the justification for,and the nature and effect of the change,must be disclosed.,Level III.Recognition and Measurement Criteria,(I).Environmental Assumptions,1.Economic Entity Assumption,An economic entity can be any organization or unit in society.The business is distinct from:,(1)its owners and,(2)all other economic entities.,A business enterprise may be organized as,solo proprietorship,partnership and corporation,.,Solo-proprietorship,A business owned by one person.,The owner is often the manager/operator of the business.,Small service-type businesses or small retail stores.,Solo-proprietorship,Usually only a limited amount of money(capital)is necessary to start in business,and the owner receives any profits,suffers any losses,and is personally liable for all debts of the business.,Partnership,When a business is owned by two or more persons(partners).,When a partnership is created,there should be an agreement setting forth such terms as initial investment of each partner,duties of each partner,division of profits or losses,and settlement to be made upon death or withdrawal of a partner,.,Partnership,Each partner generally has unlimited personal liability for the debts of the partnership.,The partnership affairs must be kept separate from the personal activities of the partners.,Corporation,A business organized as a separate legal entity under state corporation law and its ownership divided into transferable shares of stock is called a corporation.,The holders of the shares enjoy limited liability;they are not personally liable for the debts of the corporate entity,.,2.Going Concern Assumption,The business is assumed to continue indefinitely unless terminated by owners.,The basis of recording financial elements is historical accounting.,Liquidation accounting(based on liquidation values)is not followed unless so indicated.,3.Monetary Unit(Unit Of Measurement),Money is the,common unit of measure,of economic transactions.,Use of a monetary unit is relevant,and simple to understand.,4.Time Period Assumption,(to be explained in Chapter 2),22,22,(iii).Implementation Principles,1.Cost Principle(Historical Cost Principle),Transaction is recorded at its,acquisition price,.,It is not changed to reflect market price.,The principle applies to assets and liabilities.,Users of financial statements may find,current fair value,information to be useful as well.,A“mixed attribute”system reports historical cost,fair value,and lower of cost or market values,applied to inventory valuation(to be explained in Chapter 7).,2.Revenue Recognition Principle,Revenue is recognized when it is,earned or realizable,the sellers major task has completed and the amount can be objectively determined.,24,24,3.The Matching Principle,Expenses in one period are matched to revenues of the same period,so as to determine the profit in the cureent period appropriately.,4.The Full Disclosure Principle,Financial statements must report what a,reasonable person,would need to know to make an informed decision.,Disclosure may be made:,within the,body,of the financial statements,as,notes,to those statements,or,as,supplementary,information.,Implementation Constraints,1.Cost-Benefit Relationship,*The cost of providing information should not outweigh the benefit derived.,*Costs and benefits are not always obvious or quantifiable.,*Sound judgment must be used in providing information,.,2.Materiality,refers to an items importance to a firms overall financial operations,.,3.,Industry Practices,The nature of some industries may sometimes require departures from basic accounting theory.,If application of accounting theory results in statements that are not comparable or consistent,then industry practices must examined for possible explanations.,4.,Conservatism,suggests that the preparer,when in doubt,choose a,conservative solution,.,This solution will be,least likely,to overstate assets and income.,Conservatism,does not suggest,that net assets or net income be deliberately understated.,1.4 The Accounting Equation And Transactions,The Accounting Equation:,Assets=Liabilities+Owners Equity,Transactions,are the economic events of the enterprise.,They may be identified as external or internal.,1 External transactions,involve economic events between the company and some outside enterprise or party.,2 Internal transactions,are economic events that occur entirely within one company.,TRANSACTION ANALYSIS,Rex Nelson,decided to open a computer programming company which named as,Softroom.,He invested,$150,000,cash in the business.,TRANSACTION ANALYSIS TRANSACTION,1,There is an increase in the asset,Cash,$15,000,and an equal increase in the stockholders equity,R.N.Capital,$150,000,.,TRANSACTION ANALYSIS TRANSACTION,1,SOLUTION,(1),+150,000 =+150,000 Capital,Assets,=,Liabilities,+,Owners Equity,R.Nelson,Cash,Capital,TRANSACTION ANALYSIS TRANSACTION,2,Softroom,purchased computer equipment for,$70,000,cash.,Cash,is decreased,$70,000,and the asset,Equipment,is increased,$70,000,.,TRANSACTION ANALYSIS TRANSACTION,2,SOLUTION,=,+,70,000,=,(2),-70,000 +70,000,Assets,=,Liabilities,+,R.N.Capital,Cash,+,Equipment,Old Bal.,150,000,150,000,New Bal,.,80,000,150,000,Owners Equity,Softroom,purchased computer paper and other supplies expected to last several months from,Adam Supply Company,for$16,000 on credit.,TRANSACTION ANALYSIS TRANSACTION,3,Adam,Supply Company,Softroom,Inc.,The asset,Supplies,is increased,$16,000,and the liability,Accounts Payable,is increased by the same amount.,TRANSACTION ANALYSIS TRANSACTION,3,SOLUTION,+,=,+,(3),+16,000 +16,000,Assets,=,Liabilities,+,Owners Equity,Accounts,R.N.Capital,Cash,+,Supplies,+,Equipment,=,Payable,+,Old Bal.,80,000,70,000,150,000,New Bal.,80,000,16,000,+,70,000,16,000,150,000,Softroom,received,$12,000,cash from customers for programming services it has provided.,TRANSACTION ANALYSIS TRANSACTION,4,Softroom,Cash,is increased,$12,000,and,R.N.Capital,is increased,$12,000,.,Assets,=,Liabilities,+,Stockholders Equity,Accounts,Cash,+,Supplies,+,Equipment,=,Payable,+,Old Bal.,80,000,16,000,70,000,16,000,150,000,New Bal.,92,000,+,16,000,+,70,000,=,16,000,+,162,000,R.N.Capital,TRANSACTION ANALYSIS TRANSACTION,4,SOLUTION,(4),+12,000 +12,000 Service Revenue,Softroom,received a bill for,$2,500,from the,Daily News,for advertising the opening of its business but postponed payment of the bill until a later date.,Softroom,Daily,News,Bill,TRANSACTION ANALYSIS TRANSACTION,5,Accounts Payable,is increased,$2,500,and,R.N.Capital,is decreased,$2,500,.,TRANSACTION ANALYSIS TRANSACTION,5,SOLUTION,Assets,=,Liabilities,+,Accounts,Cash,+,Supplies,+,Equipment,=,Payable,+,Old Bal.,92,000,16,00,70,000,16,000,162,000,New Bal.,92,000,+,16,000,+,70,000,=,18,500,+,159,500,Stockholders Equity,R.N.Capital,+2,500 -2,500 Advertising Expense,Softroom,provided programming services of,$35,000,for customers.,Cash amounting to,$15,000,was received from customers,and the balance of,$20,000,was billed to customers on account.,Softroom,Bill,TRANSACTION ANALYSIS TRANSACTION,6,TRANSACTION ANALYSIS TRANSACTION 6 SOLUTION,Assets =Liabilities +Owners Equity,Cash +A/R +Supplies +Equipment =Accounts Payable +R.N Capital,Old bal.,92,000 16,000 70,000 18,500 159,500,+15000 +20000,+35,000 Service Revenue,Cash was increased$15 000;Accounts Receivable was increased$20 000;and Capital was increased$35000,Expenses paid in cash for September were store rent,$6,000,salaries of employees,$9,000,and utilities,$2,000,.,Softroom,Inc.,$6,000,$9,000,$2,000,TRANSACTION ANALYSIS TRANSACTION,7,Rent Exp.,Salaries Exp.,Utilities Exp.,A count of supplies on September 30 indicated that$4,000 of supplies had been used in developing software for clients.,TRANSACTION ANALYSIS TRANSACTION,8,Assets =Liabilities +Owners Equity,Cash +A/R +Supplies +Equipment =Accounts Payable +R.N Capital,-4,000,-4,000 Suppl