Accounting-Lesson2FinancialReports解析.pptVIP

Lesson Two:Financial Reports 2-1 Introduction financial report accounting calculation operating result cash flow statement notes to the financial statement creditors government department finance and security institution management Accounting Standards for Business Enterprise 2-1 Introduction shot-term liquidity long-term solvency capital structure profitability working capital contingency account form report form “T” account 2-1 Introduction accounting treatment current period prior period unusual items historical cost market value measurement currency inflation purchasing power 2-2 The Balance Sheet and Notes  to the Financial Statements short-term investment notes /accounts receivable provision for bad debts net value fixed asset construction in progress deferred tax on debit /credit short-term loans (payable) notes /accounts payable To help explain, evaluate and predict short-term liquidity capital structure and long-term solvency the operating performance allowing the users to tell at a glance that total assets are being financed by two sources——by the creditors and by the owners. Assets=Liabilities +Owners’ equity Limitation of the Balance Sheet 2-3 The Income Statement profit distribution realization concept revenue recognition IASB: International Accounting Standard Board FASB: Financial Accounting Standard Board conceptual framework matching concept To help explain, evaluate and predict the operating results and profitability; To help explain, evaluate and predict solvency; To help the management make operating decisions; To help evaluate the management’s performance. The Realization Concept The Matching Concepts Recognition of Expenses Simple and convenient to prepare, but Fails to disclose some important information, and is inconvenient to compare and analyze. Income Statement: Classification of Expenses 2-4 The Statement of Cash Flows Cash receipts and cash disbursements/ payments Cash equivalent liquidity Operating/ investing/ financin