Financial Accounting SUFE week 1 Spring 2012 Intro

FinancialAccounting–ACC1:“informationthatcreatesvalue”ShufeAutumnSemester2012-Week1-InformationforDecisionMaking邦保罗dr.PaulP.M.BonToday…IntroductiontothecourseIntroductiontoFinancialAccounting(FA)–Accounting1ClassAssignmentsHomeworkAworldofinformation…IntroductionCourseFAReadsyllabusParticipate!PreparebeforecomingtoclassPrepareforyourteam’sportfolioFailingtoprepareispreparingtofail…Howyouwillkeeptrack…Yourteamleaderhasahighresponsibility…DownloadtheslidesfromShufe’sinternetweeklyProvidetheteammemberswiththeslidesDefinetherolesinhis/herteamCoordinatethehomeworkMakesureyouwillbeabletopresentyourhomeworkeveryweek…Everyweekwewillhave…YourfeedbackofassignmentsInstructiononthenewtheoryIllustrationofthenewtheory“IntheNews”issuesonAccountingWhatyouwillbringtoclass…Keepingyouragenda…Recommendedreading…FinancialTimesMcKinseyQuarterlyTheEconomistInstituteofMATheFinancialAccountingStandardsBoardorFASB()ChooseaS&P500companyandformyourteam!Youwillworkinteamsofmax.5personsYourteamwillhavetopickaUScompany(S&P500)toworkonduringthecourseNote:onlyaUScompanylistedonS&P500andpreferablynotabankorinsurancecompanyFormyourteamtoday!Thensittogetherandchoseyourcompany…HandinA-4withyourteammembers(studentnumbers)andthenameofthecompany!Aboutthetextbook…13thedition;2booksACC1istheredcoverbookACC2(nextsemester)isthegreencoverbook(104RMB)14thedition;2books…(127RMB…)Thesyllabus…(blackboard)Grading:Classassignments-Quizzes10%MidTermExam20%Groupassignments(S&P500company):20%(midandendoftermeach10%)FinalExam:50%PassinggreenlightsCompaniesyoucanthinkof…Or…Or…Or…Or…Or….Assignment1week1;IntroduceyourcompanyYouhavepickedaUScompanyDosomeresearchonyourcompanyPutadocument(PP)togethercontaining:ProductsandMarketsCompetitionFinancialPerformance(caseinpointpp.5)Valuecreation(sharepriceperformance)Missionofthecompany(pp.15)Organizationchart(pp.14)Yourteam’sassessmentof:QualityofInformationprovidedClarityofinformationprovidedRecommendationsforimprovementKeepthedocumentinyourteam’sportfolioEnronandAccounting…Howtokeeptrack…ReviewyourperformanceBlackBoard…(ppt,coursematerials…)Readthesyllabus…TapintoyourteammembersReadandExplore(internet)Practice,practice,practice…Ask…IntroductionAccountingManagement:Planning,Organizing,LeadingandControlling…FinancialAccounting:Identify,MeasureandCommunicateeconomicinformationtopermitinformedjudgementsanddecisionsbyusersoftheinformationManagementAccounting:identify,MeasureandCommunicateeconomicinformationineverypartoftheManagementcycleinordertomakebetterbusinessdecisions…isaninformationsystemthat...measuresbusinessactivities,processesinformation,and...communicatesfinancialinformation.Accounting...Informationforwho?Forthestakeholdersinthecompany:Customers(productsandservices)Shareholders(investorrelations)Employees(employmentsecurity)Suppliers(creditprovided)Debtfinancingproviders(banks)Governments(tax)StatisticBureau(statistics)Stakeholders…Informationaboutwhat?AnyinformationneededtohelpthecompanyreachitsgoalsThemainobjectivebeing:CreatingShareholdersValue…Value=LongTermFreecashFlow/WACC%StakeholderversusshareholderSMARTobjectivesandinformationSpecificMeasurableAchievableRelevantTimedInformationtoshareThevalueofinformation…Theexpectedadditionalvaluetheadditionalcostofacquiringtheinformation…Overload…ObjectivesofAccountingCourseBeabletouseaccountingvocabularyfordecisionmakingBeabletoapplyaccountingprinciplesandconceptstobusinesssituationsBeabletousetheaccountingequationtodescribeacompany’sfinancialpositionBeabletousetheaccountingequationtoanalyzebusinesstransactionsBeabletoprepareanduseFinancialStatementsEvaluateTheperformanceofbusinessBasicsTechniquesInformation+=PublicSector(SEC)PrivateSector(FASB)PrivateSector(AICPA)(IMA)GAAPTheAuthorityUnderlyingAccountingAllAccountingiscenteredaroundactivitiesThevaluechainisthesequenceofactivitiesofacompanythatmakesanddeliversgoodsandservices…Understandingthenatureandreasonforeachactivityinthechainwillmakeyouunderstandthecostoftheactivities…Activity=task=valuecreationThereare4mainclassesofactivities:Customermanagementactivities:allactivitiesinordertounderstandcustomerrequirementsInnovationactivities:allactivitiesrelatedtothedevelopmentofnewproductsandservicesthatmeettherequirementsofcustomersOperationsactivities:allactivitiesthatarerelatedtoinboundlogistics,managementofsuppliers,manufacturing,andmanagingtheflowofproductsandservicestowardscustomersServiceactivities:aftersalesserviceactivitiesHowtoallocateR&Dcosts…CostAccountingandMACostAccounting:accountingforproductcostingandstockvaluationManagementAccounting:accountingtoprovideappropriateinformationaboutbusinessprocessesFinancialaccountingandMAFinancialaccounting:forthecommunicationofeconomicinformationaboutthecompanytoindividualsandorganizationsthatareexternaltothecompanyManagementAccounting:forthecommunicationofeconomicinformationaboutthecompanytoindividualsandorganizationsthatareinternalforthecompanylikemanagersandemployees…Fro