中国人民大学出版社朱国泓中级财务会计学.PPT

* You have faced ethical situations in school and will face similar situations at work. We should be capable of identifying ethical concerns and analyzing our options, that is, what is the right and wrong thing to do. Making an ethical decision means we choose the best option available under the circumstances. * Financial accounting in governed by a set of rules we call Generally Accepted Accounting Principles, or GAAP for short. Generally accepted accounting principles identify three major characteristics of information. First, the information must be relevant. Relevant information impacts the decision of the informed user for financial information. Second, the information must be reliable. Finally, the information must be comparable. Comparability helps us compare financial information from one period with that of the next period. * The Financial Accounting Standards Board is recognized as the group in the private sector that makes specific accounting principles. If an accountant departs from the principles established by the FASB, proper disclosure of the departure must be made. In the public sector, the Securities and Exchange Commission has the authority to establish accounting principles for companies reporting to the agency. Currently, the Securities and Exchange Commission has accepted all pronouncements of the FASB for use by reporting companies. The IASB or International Accounting Standards Board issues international standards that identify preferred accounting practices in other countries. However, the IASB does not have the authority to impose its standards on companies. * Here are some key principles of accounting. The cost principle tell us that accounting information is based upon actual costs incurred. We refer to this cost as historical cost. The going-concern principle states that, in the absence of information to the contrary, the business entity is assumed to continue operations into the foreseeable future. The monetary unit principle m