对外经贸大学财务报表分析课件 10.ppt

Preview of chapter 3 Liabilities Current liabilities Noncurrent liabilities Analyzing liabilities Leases Lease accounting and reporting Analyzing leases Adjusting financial statements Contingencies and commitments Analyzing contingencies Analyzing commitments Off balance sheet financing Off balance sheet examples Off balance sheet analysis SPE Shareholders’ equity Capital stock Retained earnings Liabilities at edge of equity The accounting treatment to bonds FASB, SFAS 159 Amortized cost Fair value Fair value option The troubling issue for using fair value to measure bonds Credit standing worsens Fair value decreases Create income for the company Justification for this issue: A reduction in a company’s credit standing will occur only if there is a substantial reduction in the fair value of the company’s assets. The reduction in assets’ fair value will cause a substantial loss during the period. Offsetting this loss through income created by decrease in fair value of debt will correctly reflect the share of losses borne by the equity and debt holders. Illustration Preview of chapter 3 Liabilities Current liabilities Noncurrent liabilities Analyzing liabilities Leases Lease accounting and reporting Analyzing leases Adjusting financial statements Contingencies and commitments Analyzing contingencies Analyzing commitments Off balance sheet financing Off balance sheet examples Off balance sheet analysis SPE Shareholders’ equity Capital stock Retained earnings Liabilities at edge of equity Preview of chapter 3 Liabilities Current liabilities Noncurrent liabilities Analyzing liabilities Leases Lease accounting and reporting Analyzing leases Adjusting financial statements Contingencies and commitments Analyzing contingencies Analyzing commitments Off balance sheet financing Off balance sheet examples Off balance sheet analysis SPE Shareholders’ equity Capital stock Retained earnings Liabilities at edge of equity Illustration A company leases an asset on Jan 1, 2005 – it