北美财务报告.pptx
《北美财务报告.pptx》由会员分享,可在线阅读,更多相关《北美财务报告.pptx(33页珍藏版)》请在文库网上搜索。
1、FINANCIAL ACCOUNTING AND REPORTING IN NORTH AMERICAPresented at School of Management,UESTCByGeorge Lan,PhDAssociate Professor of AccountingUniversity Of WindsorWindsor,Ontario,CanadaMarch 19,20031Outline of Presentation-1nRoles of standard setting bodies(FASB,CICA),Managers,Auditors and Suppliers of
2、 Capital(Investors and Creditors or lenders)See DiagramnInformation Economics Approach and Efficiency of capital markets nWorldCom,Enron and Arthur AndersennIncentives of Management to Manage Earnings 2Outline of Presentation-2nSteps to prevent scandals from occurring in the future?nSome Ethical Pri
3、nciplesnAn Ethical CasenQuestions regarding presentation or any other(accounting)questions.3Information Economics ApproachnInformation Asymmetry exists between the parties in business transactions.The managers(agents)have more information than the investors(principals).nManagers may attempt to selec
4、t policies or to release biased information that benefit themselves to the expense of the owners.n Role of Accounting:to provide information useful for rational decision-making.4Decision Usefulness ApproachnSection 1000 of CICA Handbook(par.1000.15):nThe objective of financial statements is to commu
5、nicate information that is useful to investors,members,contributors,creditors and other usersin making their resource allocation decisions and/or assessing management stewardship.5Objectives of Financial StatementsnStatements of Financial Accounting Concepts(1978)(SFAC 1):nTo provide information tha
6、t is useful to present and potential investors and creditors and other users in making rational investment,credit,and similar decisions.nTo provide information to help present and potential investors and creditors in assessing the amounts,timing and uncertainty of prospective cash receipts from divi
7、dends or interest.6Relevance and ReliabilitynTo be useful,accounting information should provide an informative information system that links current financial statements with future state realizations and payoffs.nAccounting information should be relevant I.e.has the capacity to affect investors bel
8、iefs about future returns.nAccounting information should be reliable i.e.should faithfully represents what it purports to measure.It should be precise and free from bias.7Elements of Financial StatementsnAssets:Probable future economic benefits obtained or controlled as a result of past transactions
9、.nLiabilities:Probable future sacrifices of economic benefitsnOwners Equity:residual Interest in assets after deducting liabilities i.e.A=L+O.E.or O.E=A L.nRevenues:inflows of assets(or settlement of liabilities)arising from the entitys major or ongoing activities.8Accounting Principles-1nHistorical
10、 Cost Principle i.e.recognise(record and report)assets and liabilities initially at the cash-equivalent cost.nRevenue Recognition Principle i.e.recognise revenues when earned(earning process is complete and an exchange has taken place).All necessary costs have been incurred and collection is assured
11、 usually at point at sale.9Accounting Principles-2nMatching Principle i.e.recognise all expenses incurred in producing revenues in the same period as the revenues.nFull Disclosure Principle i.e.disclose all relevant information.10LANS CLOTHING COMPANYnInvest 10,000 Yuans(Y)to start the businessnBuy
12、1000 shirts at 5 Y each.nPay wages of 1000 Y for the first month.nSell 400 shirts at 20 Y each.nPay rent of 600 Y for the first 6 months.nIncurred miscellaneous expenses of 500 Y.nBorrowed 4800 Y and bought a truck.Truck will last for 4 years.nWhat is my net income for first month?11Lans ClothingNet
13、 Income for first monthnNet Income before taxes=Revenues Expenses=400 X 20(sales)-400 X 5(cost of shirts sold)1000(wages expense)600/6(rent for one month)500(miscellaneous expenses)-4800/48(amortisation expense for 1 month)=4,300 Yuans12Standard Setting&Auditing-1nStandard setting or regulation is n
14、ecessary to protect the investors(conflicting interests of investors and managers).The FASB(Financial Accounting Standards Board and the CICA(Canadian Institute of Chartered Accountants)are independent bodies.13Standard Setting&Auditing-2nAuditing(external)ensures that a third independent party has
15、examined the financial statements and that they are in accordance to GAAP(Generally Accepted Accounting Principles).14Efficient Securities MarketsnThe prices of securities(stocks)“properly reflect”all information that is publicly known about these securities.nInvestors will quickly adjust to new or
- 配套讲稿:
如PPT文件的首页显示word图标,表示该PPT已包含配套word讲稿。双击word图标可打开word文档。
- 特殊限制:
部分文档作品中含有的国旗、国徽等图片,仅作为作品整体效果示例展示,禁止商用。设计者仅对作品中独创性部分享有著作权。
- 关 键 词:
- 北美 财务报告