西方财务会计 chapter1

西方财务会计WESTERNFINANCIALACCOUNTINGChapter1TheFinancialAccountingConceptualFrameworkAndTheAccountingEquation1.1ACCOUNTINGAserviceactivity----ProvideusefulinformationabouteconomicentitiestointerestedpartiesAndameasurement-communicationactivity----Theusefulnessofaccountinginformationdependsoneffectivemeasurementoftheeconomicactivitiesandeffectivecommunicationofthosemeasurementstousersofthatinformation.AccountinginformationanddecisionmakersAccountinginformationFinancialaccountingManagementAccountingExternalDecisionmakersInternalDecisionmakers1.2COMPARISONBETWEENFINANCIALANDMANAGEMENTACCOUNTINGManagementAccounting----Theprocessofdevelopingandreportingaccountinginformationforinternaluserswhohavedirectaccesstotheinformationpreparing.1.2COMPARISONBETWEENFINANCIALANDMANAGEMENTACCOUNTINGFinancialAccounting----TheprocessofdevelopingandreportingfinancialinformationforexternaluserswhodonothavedirectaccesstotheinformationpreparingwhichshouldbeinaccordancewithGeneralAcceptedAccountingPrinciples(GAAP).GAAPGenerallyacceptedaccountingprinciplesarethemeasurementrulesusedtodeveloptheinformationinfinancialstatement.Theyarethoseguidelineswhichindicatehowtoreporteconomicevents.Theyconsistofanumberofconcepts,principlesandprocedures.GenerallyAcceptedAccountingPrinciplesTheSecuritiesandExchangeCommission(SEC)hastheauthoritytodeterminethefinancialstatementstobeprovidedtostockholdersandthemeasurementrulesappliedinproducingthestatements.TheFinancialAccountingStandardsBoard(FASB)iscurrentlyrecognizedasthegroupresponsibleforestablishingGAAP.TheConceptualFrameworkTheFinancialAccountingStandardsBoard(FASB)issuesStatementsofFinancialAccountingConcepts.Thesestatementsconstitutetheconceptualframeworkofaccounting.1.3THEFASB’SFINANCIALACCOUNTINGCONCEPTUALFRAMEWORK1.3-1ObjectivesoftheConceptualFrameworkTheFrameworkistobethefoundationforbuildingasetofcoherentaccountingstandardsandrules.TheFrameworkistobeareferenceofbasicaccountingtheoryforsolvingemergingpracticalproblemsofreporting.1.3-2OverviewoftheConceptualFramework----ThreelevelsofobjectiveselementsandprinciplesThefirstlevelconsistsofobjectives.Thesecondlevelexplainsfinancialelementsandcharacteristicsofinformation.Thethirdlevelincorporatesrecognitionandmeasurementcriteria.LevelI.BasicObjectivesofFinancialReportingToprovideinformation:abouteconomicresources,theclaimsonthoseresourcesandchangesinthemthatisusefultothosemakinginvestmentandcreditdecisions,suchaspresentandfutureinvestors,creditorsinassessingfuturecashflows;Andtoindividualswhoreasonablyunderstandbusinessandeconomicactivities.LevelII.BasicElementsAndQualitativeCharacteristicsofAccountinginformationLiabilities:ProbablefuturesacrificesofeconomicbenefitsEquity:ResidualorownershipinterestInvestmentbyOwners:IncreasesinnetassetsDistributionstoOwners:DecreasesinnetassetsComprehensiveIncome:Changesinequityfromnon-ownersourcesRevenues:Inflowsfromentity’songoingoperationsExpenses:Outflowsfromentity’songoingoperationsGains:IncreasesinequityfromincidentaltransactionsLosses:DecreasesinequityfromincidentaltransactionsAssets:Probablefutureeconomicbenefits(i)ElementsinFinancialStatements(i)Elementsinfinancialstatements1.Revenues2.Expensesincomestatement3.Gains4.Losses5.Comprehensiveincome6.Assets7.Liabilitiesbalancesheet8.Owner’sequity9.Investmentbytheowners10.DistributionstoownersREVENUESRevenuesarethegrossincreasesinowners’(stockholders’)equitythatresultfromoperatingthebusiness.Generally,revenuesresultfromthesaleofmerchandise,theperformanceofservices,therentalofproperty,orthelendingofmoney.Revenuesusuallyresultinanincreaseinanasset.EXPENSESExpensesarethedecreasesinowners’(stockholders’)equitythatresultfromoperatingthebusiness.Theyarethecostofassetsconsumedorservicesusedintheprocessofearningrevenue.Examplesofexpensesincludeutilityexpense,rentexpense,suppliesexpense,andtaxexpense.Whenrevenuesexceedexpenses,netincomeresults.Whenexpensesexceedrevenues,anetlossresults.Gainsandlosses(con.)Gains:increaseinequityfromincidentalorperipheraltransactionsnotassociatedwiththecompany’smajororcentrallinesofbusiness,e.g.gainfromdisposaloffixedasset.GainsandlossesLosses:decreaseinequityfromincidentalorperipheraltransactionsnotassociatedwiththecompany’smajororcentrallinesofbusiness,e.g.lossfromdisposaloffixedasset.ASSETSAssetsareresourcesownedbyabusiness.Theyarethingsofvalueusedincarryingoutsuchactivitiesasproduction,consumptionandexchange.Thecommoncharacteristicspossessedbyallassetsisthecapacitytoprovidefutureservicesorbenefitstotheentitiesthatusethem.LIABILITIESLiabilitiesareclaimsagainstassets.Theyareexistingdebtsandobligations.Mostclaimsofcreditorsattachtototalenterpriseassetsratherthantothespecificassetsprovidedbythecreditor.Owner’sequityClaimonnetassetsOwner’sequity=totalassets-totalliabilitiesDifferentOEProprietorshipandpartnership:Capital(subdivisions:Capital;Drawing)Corporation:Stockholders’equity(subdivisions:Paid-incapital;Retainedearnings)InvestmentsbyOwnersRevenuesOwners’EquityDrawingExpensesINCREASESANDDECR