統(tǒng)計學課件英語

1、,Identify the major financial statements and other means of financial reporting.Explain how accounting assists in the efficient use of scarce resources.Identify the objective of financial reporting.Explain the need fo

2、r accounting standards.Identify the major policy-setting bodies and their role in the standard-setting process.,LEARNING OBJECTIVES,Explain the meaning of generally accepted accounting principles (GAAP) and the role of

3、the Codification for GAAP.Describe the impact of user groups on the rule-making process.Describe some of the challenges facing financial reporting.Understand issues related to ethics and financial accounting.,After st

4、udying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,PREVIEW OF CHAPTER,1,Financial Statements and Reporting,What is accounting?Essential characteristics of accounting are:the ide

5、ntification, measurement, and communication of financial information about economic entities to interested parties.Financial vs. mgr.,LO 1 Identify the major financial statements and other means of financial reporti

6、ng.,,Financial InformationAccountingIdentifiesand Measuresand Communicates,,,Balance SheetIncome StatementStatement of Cash FlowsStatement of Owners’ or Stockholders’ EquityNote Disclosures,President’s le

7、tter ProspectusesReports filed with governmental agenciesNews releasesForecasts Environmental impact statements (e.g. CSR) Etc.,GAAP,,Financial Statements,Additional Information,Economic Entity,,LO 1 Ident

8、ify the major financial statements and other means of financial reporting.,Financial Statements and Reporting,,,LEARNING OBJECTIVES,Explain the meaning of generally accepted accounting principles (GAAP) and the role of t

9、he Codification for GAAP.Describe the impact of user groups on the rule-making process.Describe some of the challenges facing financial reporting.Understand issues related to ethics and financial accounting.,After stu

10、dying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,Identify the major financial statements and other means of financial reporting.Explain how accounting assists in the efficient u

11、se of scarce resources.Identify the objective of financial reporting.Explain the need for accounting standards.Identify the major policy-setting bodies and their role in the standard-setting process.,Resources are lim

12、ited. Good accounting can accurately measure performance so that the right companies get the valuable resources.,LO 2 Explain how accounting assists in the efficient use of scare resources.,Illustration 1-1

13、Capital Allocation Process,Accounting and Capital Allocation,,Financial Statements and Reporting,It promotes productivity, encourages innovation, and provides an efficient and liquid market for buying and selling securit

14、ies and obtaining and granting credit.,,“It’s the accounting.” That’s what many investors seem to be saying these days. Even the slightest hint of any accounting irregularity at a company leads to a subsequent pounding o

15、f the company’s stock price. For example, the Wall Street Journal has run the following headlines related to accounting and its effects on the economy. Stocks take a beating as accounting woes spread beyond Enron.Quart

16、erly reports from IBM and Goldman Sachs sent stocks tumbling.VeriFone finds accounting issues; stock price cut in half.Bank of America admits hiding debt.Facebook, Zynga, Groupon: IPO drops due to accounting, not valu

17、ation.It now has become clear that investors must trust the accounting numbers, or they will abandon the market and put their resources elsewhere. With investor uncertainty, the cost of capital increases for companies w

18、ho need additional resources. In short, relevant and reliable financial information is necessary for markets to be efficient.,IT’S THE ACCOUNTING,LO 2 Explain how accounting assists in the efficient use of scare resourc

19、es.,,LEARNING OBJECTIVES,Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.Describe the impact of user groups on the rule-making process.Describe some of t

20、he challenges facing financial reporting.Understand issues related to ethics and financial accounting.,After studying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,Identify the maj

21、or financial statements and other means of financial reporting.Explain how accounting assists in the efficient use of scarce resources.Identify the objective of financial reporting.Explain the need for accounting stan

22、dards.Identify the major policy-setting bodies and their role in the standard-setting process.,,LO 3 Identify the objectives of financial reporting.,Provide financial information about the reporting entity that is usef

23、ul to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers.,Objectives of Financial Reporting (General-Purpose),Financial Statements and Repo

24、rting,,Equity Investors and Creditors as the primary user group.,Objective of Financial Accounting,General-Purpose Financial StatementsWide variety of users: shareholders, creditors, suppliers, employees, and regulator

25、s,LO 3 Identify the objectives of financial reporting.,,Decision-Usefulness,Investors are interested in assessing the company’s ability to generate net cash inflows and management’s ability to protect and enhance the

26、capital providers’ investments.,Entity Perspective vs. proprietary perspective,LO 3 Identify the objectives of financial reporting.,Companies viewed as separate and distinct from their shareholders or creditors. Shareh

27、olders & creditors vs. shareholders only,Objective of Financial Accounting,,,In addition to providing decision-useful information about future cash flows, management also is accountable to investors for the custody a

28、nd safekeeping of the company’s economic resources and for their efficient and profitable use. For example, the management of The Hershey Company has the responsibility for protecting its economic resources from unfavora

29、ble effects of economic factors, such as price changes, and technological and social changes. Because Hershey’s performance in discharging its responsibilities (referred to as its stewardship responsibilities) usually af

30、fects its ability to generate net cash inflows, financial reporting may also provide decision-useful information to assess management performance in this role.,DON’T FORGET STEWARDSHIP,LO 3 Identify the objectives of fi

31、nancial reporting.,,LEARNING OBJECTIVES,Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.Describe the impact of user groups on the rule-making process.Des

32、cribe some of the challenges facing financial reporting.Understand issues related to ethics and financial accounting.,After studying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,I

33、dentify the major financial statements and other means of financial reporting.Explain how accounting assists in the efficient use of scarce resources.Identify the objective of financial reporting.Explain the need for

34、accounting standards.Identify the major policy-setting bodies and their role in the standard-setting process.,,,Various users need financial information,The accounting profession has attempted to develop a set of standa

35、rds that are generally accepted and universally practiced.,,Financial StatementsBalance SheetIncome StatementStatement of Stockholders’ EquityStatement of Cash FlowsNote Disclosure,Generally Accepted Accounting Prin

36、ciples (GAAP),LO 4 Explain the need for accounting standards.,The Need To Develop Standards,,*Including rules and practices,LO 1 Identify the major financial statements and other means of financial reporting.,,,Review

37、question 1,The financial statements most frequently provided include all of the following except thea.balance sheet.b.income statement.c.statement of cash flows.d.statement of retained earnings.,The objective of

38、financial reporting identifies ______________ as the primary users for general-purpose financial statements.,a.Managers.b.Regulators (IRS and SEC).c.Investors and creditors.d.Employees.,Review question 2,Question

39、 2,LO 2 Explain how accounting assists in the efficient use of scare resources.,,,,LO 1 Identify the major financial statements and other means of financial reporting.,,,Review question 3,GAAP stands for:(a) governme

40、ntal auditing and accounting practices.(b) generally accepted attest principles. (c) government audit and attest policies. (d) generally accepted accounting principles.,,LEARNING OBJECTIVES,Explain the meaning of g

41、enerally accepted accounting principles (GAAP) and the role of the Codification for GAAP.Describe the impact of user groups on the rule-making process.Describe some of the challenges facing financial reporting.Underst

42、and issues related to ethics and financial accounting.,After studying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,Identify the major financial statements and other means of financ

43、ial reporting.Explain how accounting assists in the efficient use of scarce resources.Identify the objective of financial reporting.Explain the need for accounting standards.Identify the major policy-setting bodies a

44、nd their role in the standard-setting process.,Parties Involved In Standard Setting,Three organizations:Securities and Exchange Commission (SEC).American Institute of Certified Public Accountants (AICPA).Financial Acc

45、ounting Standards Board (FASB).,LO 5 Identify the major policy-setting bodies and their role in the standard-setting process.,,,,Securities Act of 1933,Securities Act of 1934,Established by federal government.Accountin

46、g and reporting for public companies.,Encouraged private standard-setting body.SEC requires public companies to adhere to GAAP.SEC Oversight: over 12,000 companies on three exchangesEnforcement Authority.,LO 5 Identi

47、fy the major policy-setting bodies and their role in the standard-setting process.,Securities and Exchange Commission (SEC),http://www.sec.gov/,Parties Involved In Standard Setting,,LO 5,Committee on Accounting Procedure

48、s,Accounting Principles Board,1939 to 1959Issued 51 Accounting Research Bulletins (ARBs)Problem-by-problem approach failed,1959 to 1973Issued 31 Accounting Principle Board Opinions (APBOs)18 to 21 membersWheat Commi

49、ttee recommendations adopted in 1973,http://www.aicpa.org/,American Institute of CPAs (AICPA),National professional organizationEstablished the following:,Parties Involved In Standard Setting,,,,Wheat Committee’s recomm

50、endations resulted in creation of FASB.,Financial Accounting Foundation,Selects members of the FASB. Funds their activities. Exercises general oversight.,,Financial Accounting Standards Board,Financial Accounting Stand

51、ards Advisory Council,Mission to establish and improve standards of financial accounting and reporting.,,Consult on major policy issues.,,LO 5,Financial Accounting Standards Board (FASB),Parties Involved In Standard Sett

52、ing,,Missions is to establish and improve standards of financial accounting and reporting. Differences between FASB and APB include:,Financial Accounting Standards Board,Smaller Membership.Full-time, Remunerated Member

53、ship.Greater Autonomy.Increased Independence.Broader Representation.,LO 5 Identify the major policy-setting bodies and their role in the standard-setting process.,http://www.fasb.org/,,Illustration 1-3The Due Proces

54、s System of the FASB,LO 5 Identify the major policy-setting bodies and their role in the standard-setting process.,Financial Accounting Standards Board,,Types of Pronouncements,Accounting Standards Updates.Financial Ac

55、counting Concepts.,LO 5 Identify the major policy-setting bodies and their role in the standard-setting process.,Financial Accounting Standards Board,,,LEARNING OBJECTIVES,Explain the meaning of generally accepted accou

56、nting principles (GAAP) and the role of the Codification for GAAP.Describe the impact of user groups on the rule-making process.Describe some of the challenges facing financial reporting.Understand issues related to e

57、thics and financial accounting.,After studying this chapter, you should be able to:,Financial Accounting and Accounting Standards,1,Identify the major financial statements and other means of financial reporting.Explain

58、how accounting assists in the efficient use of scarce resources.Identify the objective of financial reporting.Explain the need for accounting standards.Identify the major policy-setting bodies and their role in the st

59、andard-setting process.,Principles that have substantial authoritative support.,Major sources of GAAP:,FASB Standards, Interpretations, and Staff Positions.APB Opinions.AICPA Accounting Research Bulletins.,LO 6 Expla

60、in the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.,Generally Accepted Accounting Principles,,Illustration 1-4 GAAP Documents,LO 6 Explain the meaning of gener

61、ally accepted accounting principles (GAAP) and the role of the Codification for GAAP.,Generally Accepted Accounting Principles,,,Should the accounting profession have principles-based standards or rules-based standards?

62、Critics of the profession today say that over the past three decades, standard-setters have moved away from broad accounting principles aimed at ensuring that companies’ financial statements are fairly presented.Instead

63、, these critics say, standard-setters have moved toward drafting voluminous rules that, if technically followed in “check-box” fashion, may shield auditors and companies from legal liability. That has resulted in compani

64、es creating complex capital structures that comply with GAAP but hide billions of dollars of debt and other obligations. To add fuel to the fi re, the chief accountant of the enforcement division of the SEC noted, “One c

65、an violate SEC laws and still comply with GAAP.”In short, what he is saying is that it is not enough just to check the boxes. This point was reinforced by the Chief Accountant of the SEC, who remarked that judgments sho

66、uld result in “accounting that reflects the substance of the transaction, as well as being in accordance with the literature.” That is, you have to exercise judgment in applying GAAP to achieve high-quality reporting.,YO

67、U HAVE TO STEP BACK,LO 6 Explain the meaning of generally accepted accounting principles (GAAP) and the role of the Codification for GAAP.,Goal in developing the Codification is to provide in one place all the authorita

68、tive literature related to a particular topic.Creates one level of GAAP, which is considered authoritative.All other accounting literature is considered non-authoritative.,FASB Codification,LO 6,FASB has developed the

69、Financial Accounting Standards Board Codification Research System (CRS). CRS is an online real-time database that provides easy access to the Codification.we will use the Codification framework (http://aaahq.org/asclogi