高级财务会计 陈信元 Introduction and chapter 1

2019/9/261IntroductiontoAdvancedAccounting1.ClassificationofFinancialAccountingFundamentalaccounting:Basicproceduresandtechniquesofaccountingareintroduced.Intermediateaccounting:Basictheoriesandmethodsoffinancialaccountingarediscussed.Advancedaccounting:Applicationoffinancialaccountingtheoriesandmethodsinspecificindustriesandtransactionsisdescribed.2019/9/2622.TopicsofAdvancedAccountingBusinesscombinationandCFSPartnershipandbranchaccountingIssuesinspecialreportingAccountingforforeignoperationsGovernmentalandnonprofitorganizationaccountingothertopics3.ReferencesFloydA.Beams:AdvancedAccounting,10thed.2009Legalrequirements,accountingstandards(CAS,2006)andsystemsinPRC2019/9/263NewspapersandJournals-JournalofAccountancy-JournalofAccountingEducation-会计研究-财务与会计4.GradingpolicyYourgradeinthiscoursewillbedeterminedasfollows:Classparticipationandtest10%Assignments20%Termexamination70%Total100%2019/9/264Chapter1BusinessCombinationadditionalreadings:CASNo.201.Concepts,ReasonsandLegalFormofB.C.11.Concepts1)definitionsgeneralmeaning:theunionofbusinessentitiesFASBStatementNo.141:p.21oftextbook2)characteristicstheeconomicentityisformedonesinglemanagementteamcontrol2019/9/2653)classificationhorizontalintegrationverticalintegrationconglomeration12.Reasons1)profitability2)operatingefficiencies3)diversificationofbusinessrisksbusinessexpansionthru.combinationorconstruction?costadvantagelowerriskfeweroperatingdelaysavoidanceoftakeoversintangibleassetsacquisitiontaxadvantages2019/9/26613.LegalformofB.C.1)mergeracquisitionofnetassetstheacquiringcompanycontinuestobeaSLE.theacquiredcompanyceasestoexistasaSLE,anditsbooksareclosed.theacquiringfirmrecordsseparateassetsandliabilitiesA+B=A2)consolidationanewfirmisformedtheacquiredfirmsnormallyceasetocontinueasSLEs.thenewfirmrecordstheseparateassetsandliabilitiesA+B=C2019/9/2673)acquisitionmajority(50%)equityinterestacquisitionthepositionofSLEofeachcompanyisunchangedtheacquiringcompanyrecordsan‘InvestmentinS’theacquiredcompanymaintainsitsbooksasbefore14.Typesofconsiderationsgivenup:cashnon-cashassetsdebtstock15.AntitrustLaw1)Proposedbusinesscombinationsarereviewedbyfederalagencies.2)Stateagenciesreviewbusinesscombinationsforpossibleviolationsofstatestatutes.2019/9/2682.BriefBackgroundonAccountingforB.C.1)muchofthecontroversyconcerningaccountingrequirementsforB.C.involvedthePoolingofinterestsmethod,whichbecamegenerallyacceptedin19502)APBOpinionNo.16(1970):12conditions3)poolingofinterestsvaluation:BVgoodwillmaynotbecreatedatthedateofcombinationtheincomeofthecombiningcompaniesfortheentireyearisincludedinthepooledentity4)FASBStatementNo.141(2001):thepoolingofinterestsmethodwaseliminatedforalltransactionsinitiatedafterJune30,2001.2019/9/269priorcombinationsaccountedforbythepoolingofinterestsmethodwillbeallowedtocontinueasacceptablefinancialreportingpracticeforpastbusinesscombinations.5)principalreasonsforeliminatingthepoolingofinterestsmethodpoolingprovideslessrelevantinformationtouserspoolingignoreseconomicvalueexchangedinthetransactionandmakessubsequentperformanceevaluationimpossiblecomparingfirmsusingthealternativemethodsisdifficultforinvestors.6)IFRS3(2004):usetheacquisitionmethod2019/9/26103.ApplicationoftheAcquisitionMethod1)theacquisitionmethodfollowsthecostprincipleforrecordingabusinesscombinationcostismeasuredbythecashdisbursed,thefairvalueofpropertygivenup,orthefairvalueofsecuritiesissued.Thisisfairvaluerule.goodwillmayberecognized.theincomeoftheacquiredcompanyisincludedonlyafterthedateofB.C.theretainedearningsoftheacquiredfirmisnotcarriedforwardtotheacquiringentity.2019/9/26112)costsofB.C.directcostsofregisteringandissuingsecuritiesarechargedagainstadditionalpaid-incapital.otherdirectcostsandotherindirectcostsofcombiningareexpensed.illustrations(p.23-24)3)costallocationproceduresdeterminethefairvaluesofallidentifiabletangibleandintangibleassetsacquiredandliabilitiesassumed.include:-identifiableintangiblesresultingfromlegalorcontractualrights,orseparablefromtheentity-researchanddevelopmentinprocess-contractualandsomenoncontractualcontingencies2019/9/2612usefairvaluesdetermined,inpreferentialorder,by:-establishedmarketprices-presentvalueofestimatedfuturecashflows,discountedbasedonobservablemeasures-otherinternallyderivedestimationsexceptionstofairvaluerule-deferredtaxassetsandliabilities[FASBStatementNo.109andFINNo.48]-pensionsandotherbenefits[FASBStatementNo.158]-operatingandcapitalleases[FASBStatementNo.13andFIN.No.21]-goodwillonthebooksoftheacquiredfirmisassignednovalue.2019/9/26134)recognitionandmeasurementoftheacquiringfirmfirst,fairvaluesareassignedtoallidentifiabletangibleandintangibleassetsacquiredandliabilitiesassumed.-alistofintangibleassetsthatmeetthecriteriaforrecognition.(P.26)-intangibleassetsmustmeeteitheraseparabilityoracontractual-legalcriterion.ifcostisgreaterthanfairvalueoftheidentifiablenetassetsacquired,theexcesscostisassignedtogoodwill.iffairvalueisgreaterthancost,theexcessfairvalueisrecognizedasagainfro