FundamentalAccountingPrinciplesPrefaceAccountantsandAccountingWhat’syourimpressionofaccountants?Doyouthinkaccountantsarejustaccounting,orjustrecording?Account-Accounting-AccountantSumerians’records(tokens)between3250B.Cand3200B.CLucaPacioli(卢卡·帕乔利)TheFatherofModernAccountingEverythingaboutArithmetic,Geometry,andProportions.,thefirstbookwrittenondouble-entryaccounting(1494)Born:1445inSansepolcro,ItalyDied:1517inSansepolcro,ItalyChapter1AccountinginBusinessConceptualChapterObjectivesC1:ExplainthepurposeandimportanceofaccountingintheinformationageC2:IdentifyusersandusesofaccountingC3:IdentifyopportunitiesinaccountingandrelatedfieldsC4:ExplainwhyethicsarecrucialinaccountingC5:ExplainthemeaningofGAAP,anddefineandapplyseveralkeyaccountingprinciplesAnalyticalChapterObjectivesA1:DefineandinterprettheaccountingequationandeachofitscomponentsA2:AnalyzebusinesstransactionsusingtheaccountingequationProceduralChapterObjectivesP1:IdentifyandpreparebasicfinancialstatementsandexplainhowtheyinterrelateIdentifiesRecordsCommunicatesRelevantReliableComparableImportanceofAccountingAccountingisasystemthatinformationthatistohelpusersmakebetterdecisions.C1IdentifyingBusinessActivitiesRecordingBusinessActivitiesCommunicatingBusinessActivitiesAccountingActivitiesC1UsersofAccountingInformationExternalUsers•Lenders•Shareholders•Governments•ConsumerGroups•ExternalAuditors•CustomersInternalUsers•Managers•Officers/Directors•InternalAuditors•SalesStaff•BudgetOfficers•ControllersC2UsersofAccountingInformationExternalUsersFinancialaccountingprovidesexternaluserswithfinancialstatements.InternalUsersManagerialaccountingprovidesinformationneedsforinternaldecisionmakers.C2OpportunitiesinAccountingFinancial•Preparation•Analysis•Auditing•Regulatory•Consulting•Planning•CriminalinvestigationManagerial•Generalaccounting•Costaccounting•Budgeting•Internalauditing•Consulting•Controller•Treasurer•StrategyTaxation•Preparation•Planning•Regulatory•Investigations•Consulting•Enforcement•Legalservices•EstateplansAccounting-related•Lenders•Consultants•Analysts•Traders•Directors•Underwriters•Planners•Appraisers•FBIinvestigators•Marketresearchers•Systemsdesigners•Mergerservices•Businessvaluation•Humanservices•Litigationsupport•EntrepreneursC3AccountingJobsbyAreaGovernment,not-for-profit,&education15%Publicaccounting25%Privateaccounting60%C3国际四大会计师事务所PWC普华永道DTT德勤E&Y安永KPMG毕马威BeliefsthatdistinguishrightfromwrongAcceptedstandardsofgoodandbadbehaviorEthicsEthics—AKeyConceptC4IdentifyethicalconcernsAnalyzeoptionsMakeethicaldecisionUsepersonalethicstorecognizeethicalconcern.Considerallgoodandbadconsequences.Choosebestoptionafterweighingallconsequences.GuidelinesforEthicalDecisionsC42001年4月16日,朱镕基在视察上海国家会计学院时,为该校题写的校训是:不做假账;10月29日,朱镕基视察北京国家会计学院后,题字是:诚信为本,操守为重,遵循准则,不做假帐。财务造假案我国琼民源财务造假案银广夏财务造假案美国安然事件(Enron)世通事件(WorldTelecom)Sarbanes-OxleyActAlsoknownasSOXPassedbyCongresstohelpcurbfinancialabusesatcompaniesthatsellstocktothepublicRequiresaccountingoversightandstringentinternalcontrolsPenaltiesincludestockmarketdelistingandcriminalprosecutionFinancialaccountingpracticeisgovernedbyconceptsandrulesknownasgenerallyacceptedaccountingprinciples(GAAP).GenerallyAcceptedAccountingPrinciplesRelevantInformationAffectsthedecisionofitsusers.ReliableInformationIstrustedbyusers.ComparableInformationIshelpfulincontrastingorganizations.C5TheSecuritiesandExchangeCommissionisthegovernmentgroupthatestablishesreportingrequirementsforcompaniesthatissuestocktothepublic.SettingAccountingPrinciplesFinancialAccountingStandardsBoardistheprivategroupthatsetsbothbroadandspecificprinciples.C5TheInternationalAccountingStandardsBoard(IASB)issuesInternationalFinancialReportingStandardsthatidentifypreferredaccountingpractices.PrinciplesofAccountingNowFutureGoing-ConcernPrincipleReflectsassumptionthatthebusinesswillcontinueoperatinginsteadofbeingclosedorsold.CostPrincipleAccountinginformationisbasedonactualcost.ObjectivityPrincipleAccountinginformationissupportedbyindependent,unbiasedevidence.C5PrinciplesofAccountingRevenueRecognitionPrinciple1.Recognizerevenuewhenitisearned.2.Proceedsneednotbeincash.3.Measurerevenuebycashreceivedpluscashvalueofitemsreceived.MonetaryUnitPrincipleExpresstransactionsandeventsinmonetary,ormoney,units.BusinessEntityPrincipleAbusinessisaccountedforseparatelyfromotherbusinessentities,includingitsowner.C5BusinessEntityFormsSoleProprietorshipPartnershipCorporationC5*ProprietorshipsandpartnershipsthataresetupasLLCsprovidelimitedliability.CharacteristicsofBusinessesCharacteristicProprietorshipPartnershipCorporationBusinessentityyesyesyesLegalentitynonoyesLimitedliabilitynonoyesUnlimitedlifenonoyesBusinesstaxednonoyesOneownerallowedyesnoyes**C5Ownersofacorporationarecalledshareholders(orstockholders).Whenacorporationissuesonlyoneclassofstock,wecallitcapitalstock.CorporationC5QuickStudyIdentifywhichgeneralaccountingprinciplebestdescribeseachofthefollowingpractices.a.InDecember2006,ChavezLandscapingreceivedacustomer’sorderandcashprepaymenttoinstallsodatanewhouse