某公司财务会计及财务管理知识分析(英文版)课件

The Financial StatementsChapter 11Learning Objective 1Use accounting vocabulary.2Accounting LanguageAccounting is an information system that:Measures business activitiesProcess data into reports(financial statements)Communicates results to decision makers3Accounting LanguageFinancial Statements:Financial information about a business entity that is prepared in a systematic report format that can be used by decision makers to make decisionsIncomeStatementBalanceSheetStatement ofCash Flow4The Flow of Accounting Information3.Businesses report their results.2.Business transactions occur.1.People make decisions.5IndividualsUsers of Financial StatementsInvestors andcreditorsGovernmentregulatoryagenciesNon-profitorganizationsTax Authorities6Financial AccountingSummarize business transactions of business entity for a specified periodUsers External decision makersInformation must:Be presented in systematic reports meet GAAP standards for relevance and reliability 7Management AccountingFinancial and operating data about an organizations activities,processes,operating units products services and customersUsers -internal decision makersInformation-can generated using assumptions-Future oriented -not governed by GAAP8Ethics in AccountingInformation must be:1.RelevantInformation has predictiveor feedback valueCan influence a decisionTimely2.ReliableInformation is verifiableInformation must be objective9Ethics in AccountingIntegrity is built in financial accounting as follows:Generally accepted accounting principles(GAAP)Audits of financial statementsSecurities commissionsInternal Control StructureAccounting Standards Board of the Canadian Institute of Chartered Accountants10Ethics in Accounting and BusinessStandards of professional conduct for accountantsSelf-regulating bodies of accountants11ProprietorshipsPartnershipsCorporationsHow to Organize a Business12CorporationsStocksShareholdersCanadian Business Corporation ActBoard ofDirectorsChief Operating Officers,Presidents,Managers13How to Do Accounting:Principles and ConceptsThe rules that govern accounting are called GAAP(generally accepted accounting principles).Accountants follow professional guidelines.14GAAPCICA Handbook:official source of GAAP;sanctioned by federal and provincial governments and the Canadian Securities AdministratorsAccounting Standards Board(AcSB)Public Sector Accounting Standards Board Emerging Issues Committee(EIC)International Accounting Standards Board(IASB)15International Accounting Standards Board(IASB)IASB is charged with setting International Financial Reporting Standards(IFRSs)Canadian GAAP will converge with IFRSs1st year for reporting under IFRS-based standards will be 201116Learning Objective 2Learnaccounting conceptsand principles.17Conceptual Framework Information must be useful for decision makersRelevanceReliabilityComparabilityUnderstandabilityGAAP18GAAP Requirements for Financial InformationGAAP requires:business entity conceptcost principlegoing concern assumptionobjectivity principleadequate disclosurestable dollar assumption19The Business Entity Concept20The Cost Principle21The Going-Concern Concept22(1)are verifiable and(2)can be confirmed by anindependent observer.The Objectivity Principle23Adequate Disclosure24The Stable-Monetary-Unit Concept25Learning Objective 3Apply the accounting equation to business organizations.26The Accounting Equation27The Accounting EquationAssets=Liabilities+Owners Equity28The Accounting EquationAssets are the economic resourcesof a business that are expected toproduce a benefit in the future.Liabilities are“outsider claims”or economic obligationspayable to outsiders.Owners equity represents the“insider claims”of a business.29The Accounting EquationFor a corporation,shareholders equityis divided into two main categories.Contributed capitalRetained earningsAssets=Liabilities+Shareholders equityAssets=Liabilities+Contributed capital+Retained earnings30The Accounting EquationContributed capital is the amount investedin the corporation by its owners.The basic component of contributedcapital is common shares.Retained earnings is the amount earnedby income-producing activities andkept for use in the business.31The Accounting Equation:Net incomeRevenues are increases in retainedearnings from delivering goodsor services to customers.Expenses are decreases in retainedearnings that result from operations.32Components of Retained EarningsRevenues forthe periodExpenses forthe period=Net income(or Net loss)for theperiodDividendsfor theperiodEndingbalance ofretainedearningsEnd ofthe periodStart ofthe periodBeginningbalance ofretainedearnings+or=33Learning Objective 4Evaluate business operations.34The Financial Statements35Information Reported on the Financial Statements1.How well did the company perform (or operate)during the period?Revenues Expenses Net income(Net loss)IncomestatementQuestionAnswerFinancialStatement2.Why did the companys retained earnings change during the period?Beginning Retained Earnings+Ne