Libby2ce_Ch 06——北美会计原理.ppt

Financial Accounting Robert Libby, Patricia A. Libby, Daniel G. Short, George Kanaan, Maureen Gowing Chapter 6 The Disclosure Process Annual Reports For privately held companies, annual reports are simple documents that include: Four basic financial statements Related footnotes Report of independent accountants (auditor’s opinion) Annual Reports Annual Reports Summarized financial data Management Discussion and Analysis The four basic financial statements Notes Independent Accountant’s Report Recent stock price information Summaries of the unaudited quarterly financial data Lists of directors and officers of the company and relevant addresses Guiding Principles for Communicating Useful Information The full-disclosure principle requires (a) a complete set of financial statements and (b) notes to the financial statements. Guiding Principles For Communicating Useful Information Information presented in financial reports is useful if it makes a difference in the context of making a decision. Guiding Principles For Communicating Useful Information Comparability – enables users to identify similarities and discrepancies between two sets of financial reports produced by two different companies Consistency – enhances comparability by using the same accounting methods over time Notes to Financial Statements Financial Statement Formats Classified Income Statement Exhibit 6.5 Return on Equity (ROE) Return on Equity (ROE) The End of Chapter 6 Copyright ? 2006 McGraw-Hill Ryerson . 6-* Second CANADIAN edition Communicating and Interpreting Accounting Information Players in the Accounting Communication Process Independent Auditors Verification Partners, Managers, Staff Guided by GAAS Management Preparation CFO, CEO, Accounting Staff Guided by GAAP An unqualified opinion states that the financial statements are fair presentations in all material respects in conformity with GAAP. Information Intermediaries Analysis and Advice Financial analysis, Information