ACCAF3课堂PPT

Financial AccountingStudy text 2009-2010 Aim of F3Develop knowledge and understanding of the basic principles and concepts relating to financial accounting Develop technical proficiency in the use of double-entry accounting techniques including the preparation of basic financial statementsSyllabus（http:/ context and purpose of financial reporting(A)The qualitative characteristics of financial information and the fundamental bases of accounting(B)The use of double entry and accounting systems(C)Recording transactions and events(D)Preparing a trail balance(E)Preparing basic financial statements(F)Types of business entity The users of financial reporting Financial accounting and management accounting 234What is financial reporting 1Chapter 1 Introduction to accounting 5The main elements of financial reporting 1.1 What is financial reporting Financial reporting is a way of recording ,analyzing ,and summarizing financial data.Business entityTransactionsBooks of prime entryLedgersFinancial statementsusersRecordAnalyzeSummarizeSole trader-a biz is owned and operated by one person with or without employees.The contributor is himself.Partnership-several people jointly operate the biz.The contributors are partners.Company-usually are limited companies.The contributors are called shareholders or members of the company.shareholderss liabilities are limited to the money they have put into the company.1.2 Types of business entity1.2 Types of business entityOwner(s)Personal liabilitySole tradersOne Personally liablepartnershipsMore than one Personally liableLimited liability companiesShareholders or membersAre responsible for their sharesBusinesses of whatever size or nature exist to make a profit.1.2 Types of business entityCompanies nAs a group they elect the directors who run the business.shareholders directors companies Advantage and Disadvantage(P6)electrunrunWhich of the following are differencies between sole traders and liability companies?1 a sole traders finacial statements are private,a companies financial statenments are sent to shareholders.2 only companies have capital invested into the business.3 sole trader has fully and personally liably for any losses that the business might make;a companys shareholder are not personally liable for any losses that the company might make.External：shareholdersProviders of finance to the company Government Taxation authoritiesThe public.Users of information Internal:Managers of the company Employee 1.3 Users of accounting information Managers need financial information for planning and decision-makingEmployees need financial information to safeguard their jobs and incomeShareholders and potential shareholders need financial information for investment decisionProviders of finance need financial information to safeguard loans that they have made or intend to makeGovernment and their agencies need financial information to monitor the economy and to collect tax1.3 Users of accounting information 1.4 The category of accounting Financial accounting Management accounting Accounting 项目项目 管理会计管理会计财务会计财务会计n必要性可选择要求n目的协助管理为外部使用者n使用者小群体，了解大群体，不了解n基本结构依信息的使用会计恒等式n遵循的原则 对管理层有用会计准则n时间范围历史、未来历史n信息内容货币及非货币的 货币的Financial accounting and management accountingContinue.项目项目 管理会计管理会计 财财务会计务会计n报告频率 按月或按周 按季或按年n报告时限 报告期结束后 延迟数周或数月n报告主体 责任中心 组织整体n潜在责任 无诉讼危险 存在诉讼危险1.5 the main elements of financial reportsKey term:nThe balance sheet(the statement of financial position)is simply a list of all assets and liabilities at a particular data,it is a snapshot of the financial position of the business at a particular moment.monetary amounts are attributed to each of the assets and liabilities.Key term:nThe income statement(the statement of comprehensive income)is a record of revenue and expenditure incurred over a given period.The statement shows whether the business has had more revenue than expenditure(a profit)or vice versa(loss).1.5 the main elements of financial reportChapter 2 The regulatory framework2.1 the regulatory systemNational legislation Accounting concepts and individual judgement Accounting standardsOther international influencesGAAP(generally accepted accounting principles)Fair presentation The IASB and financial reportingIASB(国际会计准则理事会）nInternational Accounting Standards BoardnResponsible for issuing IFRSs and IAS(国际会计准则的制定机构)nIndependent private sector body The structure of IASB 国际财务报告解释委员会国际财务报告解释委员会（IFRICIFRIC）国际会计准则理事会国际会计准则理事会（IASBIASB）准则咨询委员会准则咨询委员会（SACSAC）IASCIASC基金会基金会 (IASCF)(IASCF)The objective of the IASBDevelop a single set of global accounting standardsTo promote the rigorous application of those standardsTo bring about convergence of national standards致力于：对国际会计准则的研究与制定致力于：对国际会计准则的研究与制定工作工作,联合各国会计准则制定机构，实联合各国会计准则制定机构，实现会计准则的国际趋同。现会计准则的国际趋同。SAC:(准则咨询委员会）nStandards Advisory CouncilIFRIC:（国际财务报告解释委员会）nInternational Financial Reporting Interpretations CommitteeIASCF：(国际会计准则委员会基金会）nInternational Accounting Standards Committee Foundation IMF：（国际货币基金组织）nInternational Monetary Fund International Harmonisation IASB 近年来倾向于逐步缩小会计处理方法的选择余地。欧盟所有成员国将于2005年1月1日起采用国际财务报告准则编制合并报表(consolidated accounts)，澳大利亚、俄罗斯等国也有类似决定。是一些国家制定本国准则的基础（如我国）Chapter 3 Accounting conventions Criticisms of accounting cinventionsBases of valuation 2341IAS 1 IAS 1:Presentation of Financial StatementsThe IASBs FrameworkFramework VS.Standardsn基本指导思想-frameworkn具体实施规范-standards The framework is not an IFRS and so does not overrule any individual IFRS.In the cases of conflict between an IAS and the framework,the IAS or IFRS willprevail.(p36)Sources of accounting conventions2.Conventions involved in IAS12.1 Objective of IAS12.2 Purpose of financial statements2.3 The most important concepts:nFair presentation nCompliance with IASs/IFRSsFair presentation(true and fair view)Financial statements should be”fairly presented”(公允列报）nCompliance with IASs/IFRSnDeparture from the IAS/IFRS is requied when management dicides that compliance with a requirement of an IAS/IFRS would be misleading.2.4 Qualitative characteristics of financial statements(both in framewok and IAS1)RelevanceReliabilityComparabilityunderstandability2.4.1 Relevance(P38)Relevance is one of the two basic requirements that financial information must have.(the other is reliability).Only relevant information can be usefulfinancial information is relevant if it can assist users decision-making by help them to evaluate past,present or future events.2.4.2 ReliabilityTo be reliable,it must be free from bias and error.The subsidiary qualities that make information reliable are:nFair presentationnSubstance over formnNeutralitynPrudencencompleteness2.4.2.1 Substance over formnsome transactions have a real nature that differs from their legal form.nIt indicate that transactions are accounted for in accordance with their substance and economic reality and not with its legal form.Information must be free from bias to be reliable.Neutrality is lost if the financial statements are prepared so as to influence the userer to make a judgement or decision in order to achieve a predetermined outcome.2.4.2.2 Neutrality2.4.2.3 Prudence(P32)n caution must be exercised in preparing financial statement and in estimating the outcome of uncertain events.nsuch that assets or income are not overstated and liabilities or expenses are not understated.nThis does not mean,however,that the approach should be over-cautious.(P39)exampleWhich of the following explanations of the prudence concept must closely follows that in the IASB s framework?A.the application of a degree of caution in exercising judgment under conditions of uncertaintyB.revenue and profits are not recognised until realised,and provision is made for all known liabilitiesContinueC.All legislation and accounting standards have been complied with D.understatement of assets or gains and overstatement of liabilities or lossesAnswer:A2.4.2.4 CompletenessThe information in financial statements must be complete within the restrictions of materiality and cost.Omission may cause information to be misleading.Listed below are some characteristics of financial information.(1)Neutrality (2)Prudence (3)Completeness (4)Timeliness Which of these characteristics contribute to reliability,according to the IASBs Framework for the Preparation and Presentation of Financial Statements?A(1),(2)and(3)only B(1),(2)and(4)onlyC(1),(3)and(4)only D(2),(3)and(4)onlyDec 02-Q122.4.3 Comparabilityfinancial statement should be comparable with the financial statements of other companies and with the financial statements of the same company for earlier periods.To achieve comparability we need consistency and disclosure of accounting policiesIf a company changes its accounting policies there must be full disclosure of the effect of the change.2.4.4 UnderstandabilityAn essential quality of the information provided in financial statements is that it should be readily understandable by users.Understandability is dependent upon users abilitiesComplex matters should not be left out of financial statements simply due to its difficult if it is relevant information.2.5 Some other important conceptfrom IAS1Materiality and aggregation(P31)nThis is a threshold quality.If information could influence users decisions,it is material.nIn the income statement an item is normally regarded as material.nTo assess whether or not an item is material,the value of the item and the context are all important.2.6 The fundamental assumption Fair presentation Going concern AccrualsConsistency2.6.1 Going concernThe going concern assumption is that an enterprise will continue in operational existence for the foreseeable future.The entity has neither the intention nor the necessity of liquidation or of curtailing materially the scale of its operations.The main significance is that the assets should not be vlued at their“break-up”value2.6.2 AccrualsThe accruals basis of accounting means that assets,liabilities,equity,income and expense are recognized when they occur and not when cash is received or paid.Matching convention nrevenue must be matched against the expenditure incurred in earning it.2.6.3 ConsistencyThe presentation and classification of items in the financial statements should be retained from one period to the nextExcept as follows:nThere is a significant change in the nature of the operations.nA change is required buy an IFRs2.7 OffsettingAssets and liabilities can not to be offset.Income and expenses can be offset only when one of the following applies:nAn IFRS requires nGains,losses and related expenses arising from the same transactions are not material3.The IASB s frameworkKey elements:nFinancial statements should provide useful information to usersnFinancial position is show in the statement of financial positionnFinancial performance is show in the income statement nChanges in the financial position are shown in the cash flow statement Continue.The main underlying assumption are:nAccrualsnGoing concernnBusiness entity conceptFinancial statement should be:nUnderstandablenRelevantnReliable nComparablebusiness entity(Reporting entity)The entity concept requires that a business is treated as being separate from its owners.is an entity for which there are users who rely on the financial statements as their major source of financial information about the entity.p383.19 Concept of capital and capital maintenanceFinancial capital maintenance(财务资本保全）Physical capital maintenance(实物资本保全）3.15 Constraints on relevant and reliable informationTimelinessnFinancial statements should be produced within a time interval that enables users to make relevant economic decisionsn越及时的信息相关性越好，但可能没有对信息作出完整的证实，因而失去一定的可靠性 Balance between benefits and costn这说明会计信息的提供其实并非越相关可靠就越应加以提供，它需要在效益和成本之间加以权衡，以符合经济利益最大化的目标。4 Criticisms of accounting convention 4.1 criticisms of the Prudence conceptWith accrualsWith going concernWith consistence 4.2 criticisms of the Accruals assumptionWith historical 5 bases of valuation Historical cost(历史成本）Replacement cost（重置成本）Net realisable value（可变现净值）Economic value （经济价值）5.5 Disadvantages of Historical cost Advantabes:nCan be proved(eg.by the invoice)DisadvantagesnNon-current asset value are unrealistic through inflation nDepreciation is inadequate to finance the replacement of non-current assetsnIt overstates profits when prices are rising through inflation