财务会计理论—ch02 SFAC 8 FAT revised.ppt

* * * * * * * * * * SFAC 7: Cash Flow and Present Value Information, 2000 Framework for using future cash flows and present value for measurements, especially with uncertainty Questions: What are the objectives of using present value in the initial recognition of assets and liabilities? How should the estimates of cash flows and interest rates be developed? Use of the interest method Incorporating probabilities uncertainty in accounting (especially fair value accounting) calculations. Fair Value Accounting Recent accounting developments are pushing toward fair value measurement (e.g. SFAS # 157) Scholars : a shift from an income statement approach to the balance sheet approach of financial accounting. Income statement approach: Income as a process of matching revenue and expenses Balance sheet approach: Income represents a periodic change in net assets. Statement of Comprehensive Income (SCI) - IAS 1 revision (2007) SFAS 130 (1998) IAS 1 (revised 2007): Comprehensive income = all changes in net assets other than transactions with owners. SFAC #5 define Total comprehensive income = Profit or loss + other comprehensive income (OCI) Profit or loss = total of income less expenses, excluding components of OCI Other comprehensive income comprises items of income and expense that are not recognized in profit or loss as permitted by IFRS. * * Rules-Based v. Principles-Based Accounting Standards Rules-Based Standards Detailed rules rigid standards Accountants follow the rules to the letter Principles-Based Standards General rules, general definitions of economic-based concepts More weight on the Conceptual Framework and professional judgement of accountants to ensure the spirit of “true fair view” is not distorted Proposed in 2002/ 03 in the USA after Enron. Example: Capital lease accounting Capitalization criteria: The lease transfers ownership of property to the lesee. The lease contains a bargain purchase option The lease term is equal to 75% or mor