财务报告体系外文翻译.docVIP

外文翻译 The financial reporting Material Source: wan fang Author: Wallman An understanding of the conceptual bases of the financial of the reporting system and of the preparation of financial statements are essential prerequisites to financial analysis. Corporate management issues financial statements and is responsible for their form and content. It is management that selects accounting methods, compiles accounting data, and prepare the financial statements. For smaller companies, auditors may carry out portions of the preparation work. The accounting process or financial reporting system, which generates financial information for external users, encompasses five principal financial statements: Balance sheet(statement of financial position) Income statement(statement of earings) Statement of comprehensive income Statement of cash flows Statement of stockholders’equity These five financial statement, by footnotes and supplementary data, are interrelated. Collectively, they are intended to provide relevant, reliable, and timely information essential to making investment, credit, and similar decisions, thus meeting the objectives of financial reporting. An example is the 1999 financial statements of Pfizer, contained in the CD accompanying the text. Financial statements provide information about the assets , liabilities ,income and cash flows, and stockholders’equity of the firm. The effects of transactions and other events are recorded in the appropriate financial statement(s). The income statement reports revenues, expenses, and gains and losses. The balance sheet shows assets, liabilities, and stockholders’ equity; the statement of stockholders’equity reports capital transactions with owners. The statement of comprehensive income reports changes in certain balance sheet accounts that bypass the income statement .The statement of cash flows includes operating, investing, and financing inflows and outflows. Many transactions are reflected in more tha