高级财务管理Chap001

ADVANCEDACCOUNTINGLUODianying2013-2014-1MainTopics•Equitymethodofaccountingforinvestment•Consolidations•Segmentreporting•Foreigncurrency•AccountingforGovernment•AccountingforNot-for-Profitorganization•Asthebodywithoutthespiritisdead,sofaithwithoutdeedsisdead.---JamesLetyourYesbeYes,No,No.LetyourYesbeYes,No,No.4•Email：[e-mail]•Tel：[phone]•文泉楼南448室，周一、四上午ChapterOneTheEquityMethodofAccountingforInvestmentsMcGraw-Hill/IrwinCopyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.AccountingforInvestmentsinCorporateEquitySecuritiesGAAPrecognizes3waystoreportinvestmentsinothercompanies:Fair-ValueMethodConsolidationEquityMethodThemethodselecteddependsuponthedegreeofinfluencetheinvestorhasovertheinvestee.LO11-6LetyourYesbeYes,No,No.FairValueMethod1-7InvestmentsclassifiedasTradingSecurities:Heldforsaleintheshortterm.Unrealizedholdinggainsandlossesareincludedinearnings(netincome).InvestmentsclassifiedasAvailable-for-SaleSecurities:可销售证券是不期望在近期出售的的投资证券AnySecuritiesnotclassifiedasTrading.Unrealizedholdinggainsandlossesarereportedinshareholders’equityasothercomprehensiveincome(i.e.,notincludedinnetincome).Investmentsinequitysecuritiesarerecordedatcostandsubsequentlyadjustedtofairvalue.1-7ConsolidationofFinancialStatementsRequiredwhen:•Investor’sownershipexceeds50%ofinvestee•exceptwhencontroldoesnotrestwiththemajorityinvestor•OnesetoffinancialstatementspreparedtoconsolidateallaccountsoftheparentcompanyandallofitscontrolledsubsidiariesASASINGLEENTITY.1-81-8LetyourYesbeYes,No,No.EquityMethodUsedwhen:•Investorhastheabilitytoexercisesignificantinfluenceontheinvesteeoperations(whetherinfluenceisappliedornot)•Generallyusedwhenownershipis•between20%and50%.•SignificantInfluencemightbepresentwithmuchlowerownershippercentages.1-9LO21-9LetyourYesbeYes,No,No.InternationalStandard28InvestmentinAssociatesTheInternationalAccountingStandardsBoard(IASB),defines“significantinfluence”asthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvestee,butitisnotcontrolorjointcontroloverthosepolicies.Ifinvestorhas20%ormoreownership,itispresumedtohavesignificantinfluence,unlessitisdemonstratednottobethecase.Ifinvestorholdslessthan20%ownership,itispresumeditdoesnothavesignificantinfluence,unlessinfluencecanbeclearlydemonstrated.1-101-10LetyourYesbeYes,No,No.Whatis“Significant”Influence??(FASBASCSection323)Representationontheinvestee’sBoardofDirectorsParticipationintheinvestee’spolicy-makingprocessMaterialintercompanytransactionsInterchangeofmanagerialpersonnelTechnologicaldependencyExtentofownershipinrelationtootherinvestorownershippercentages1-11InvestorOwnershipoftheInvestee’sSharesOutstanding0%20%50%100%FairValueEquityMethodConsolidatedFinancialStatementsGeneralOwnershipGuidelinesSignificantinfluencegenerallyassumed(20%to50%ownership).Usuallylackofcontrolorsignificantinfluence.Financialstatementsofallrelatedcompaniesmustbeconsolidated.1-12LetyourYesbeYes,No,No.FairValueEquityMethodConsolidatedFinancialStatementsGeneralReportingGuidelines1:SameasFairValue2:Investorrecognizesitsshare(%ofowner-ship)ofinvestee’snetincome(netloss)asanincrease(decrease)intheinvestmentaccountanddividendsasadecrease.1.Investorrecordsinvestmentat“cost”.2.Investorrecognizescashdividendsfrominvesteeasincome.OnesetoffinancialstatementsarepreparedtocombineaccountsoftheinvestorandallofitsinvesteesASASINGLEENTITY.LO31-13LetyourYesbeYes,No,No.Fair-ValueMethod–AppliedStep1:Investorrecordsinvestmentintheinvesteeat“cost”.Journalentry:Debit–InvestmentinInvesteeCredit–Cash(orotherAssets/Stock)CostcanbedefinedascashpaidortheFairMarketValueofotherassetsgivenup.1-14Fair-ValueMethod–Applied(continued…)Step2:InvestorrecognizesdividendincomefortheamountofcashdividendsreceivedfrominvesteeJournalentry:Debit–CashCredit–IncomefromInvestment1-15Fair-ValueMethod–Applied(continued…)Step3:Investoradjuststheinvestmentaccounttofair-marketvalue(ifreadilydeterminableatreportdate)IfFMVishigherthancurrentcarryingbalanceinaccount…Journalentry:Debit–InvestmentCredit–UnrealizedGainonInvestment****ThiswillappearontheincomestatementforTradingSecurities,orinOtherComprehensiveIncomeforthoseclassifiedasAvailable-for-Sale.EquityMethod-AppliedStep1:Investorrecordsinvestmentintheinvesteeat“cost”.Journalentry:（与FV方法相同）Debit–InvestmentinInvesteeCredit–Cash(orotherAssets/Stock)CostcanbedefinedascashpaidortheFairMarketValueofotherassetsgivenup.1-17EquityMethod–Applied(Continued…)Step2:Theinvestorrecognizesitsproportionate(prorata)shareoftheinvestee’snetincome(ornetloss)fortheperiod.Journalentry:(被投资方netincome增加比例）Debit–InvestmentinInvesteeCredit–EquityinInvesteeIncomeThiswillappearasaseparateline-itemontheinvestor’sincomestatement.1-18EquityMethod–Applied(Continued…)Step3:Theinvestorreducestheinvestmentaccountbytheamountofcashdividendsreceivedfromtheinvestee.Journalentry:Debit–CashCredit–InvestmentinInvestee1-19EquityMethodExampleLittleCompanyreportednetincomeof$200,000during2012andpaidcashdividendsof$50,000.ThesefiguresindicatethatLittle’snetassetshaveincreasedby$150,000duri