會計報表分析講稿 - 副本.doc

會計報表分析講稿Chapter 1Introduction to Financial ReportingDevelopment of Generally Accepted Accounting Principles (GAAP) Generally accepted accounting principles provide a common source of authority for preparation of financial statements History of GAAP in the United Stateso Prior to Securities Acts of 1933 and 1934, New York Stock Exchange established reporting requirements for publicly traded companieso 1934 Act established the SEC; The SEC is given the authority to determine GAAP PPT 2 Sources of GAAPo 19391959: AICPAs Committee on Accounting Procedures issued Accounting Research Bulletins (ARBs)o 19591973: AICPAs Accounting Principles Board issued Opinions (APBOs)o 1973 to present: Financial Accounting Standards Board (FASB) issues: Statements of Financial Accounting Standards (SFASs) Interpretations Technical bulletins Statement of Financial Accounting Concepts (SFACs) FASB Conceptual FrameworkPPT 8 Provides the Board with a common foundation and basic reasons for considering the merits of various alternative accounting principles Statements of Financial Accounting Conceptso Do not establish GAAPo Provide a framework for evaluating promulgated accounting principleso #1 identifies the objectives of for-profit financial reportingo #2 identifies the qualities and characteristics of financial reportingo #6 (replaced #3) defines the elements of financial performance and status Assets Liabilities Equity Investments by owners Distribution to owners Comprehensive income Revenues Expenses Gains Losseso #4 identifies the objectives of financial reporting by nonbusiness organizationso #5 addresses recognition and measurement in financial statements of business enterprises Should meet four criteria: Definition Measurability Relevance Reliability Identifies five different measurement attributes currently used in practice: Historical cost (historical proceeds) Current cost Current market value Net realizable (settlement) value Present (or discounted) value of future cash flowsPPT 16Additional InputAmerican Institute of Certified Public Accountants (AICPA) Although the AICPAs primary role in the development of GAAP ended in 1973, various AICPA subdivisions continue to participate in the development of professional literature Accounting Standards Executive Committee (AcSEC)o Serves as the official voice of the AICPA in matters relating to financial accounting and reporting Accounting Standards Divisiono Published numerous documents considered as sources of GAAPPPT 17Emerging Issues Task Force (EITF) Established by the FASB Responsible for identifying emerging issues affecting reporting or problematic GAAP implementation issues Its statements contribute to GAAP but at a lower level than the FASBs statementsPPT 18A New Reality Enron bankruptcy WorldCom bankruptcy Sarbanes-Oxley Act of 2002 Requires companies to maintain adequate internal controls, and to assess the effectiveness of those controls The independent auditor is required to report on managements internal control assertions and on the effectiveness of those controls Created the Public Company Accounting Oversight Board (PCAOB)o Registers public accounting firms that audit SEC registrantso Has authority to promulgate auditing standards to be used by registered firms in the audit of SEC registrantso Annual certification of corporate financial statements by CEOs and CFOs are filed with the PCAOBPPT 21Traditional Assumptions of the Accounting Model Business Entity The business is a separate entity from its owners Going Concern or Continuity The entity will remain in business for an indefinite period of time Ignores the possibility of liquidation or bankruptcy Trump Hotels and Casino Resorts, Inc. “Accounting Impact of Chapter 11 Filing” Time Period Finite reporting periods are applied to the presumed infinite life of a business Monetary Unit U.S. dollar is used by domestic entities; inflation information is not presented Historical Cost Unless another measure is required by specific accounting standards, assets are reported at their acquisition price Conservatism Selection from various alternative reporting values is made so that the least impact on net income is achieved in the current period Realization Revenue is recognized when it can be reasonably and objectively determined; depending on circumstances, this can be:o Point of saleo End of productiono Receipt of casho During productiono Cost recovery Matching Revenue and costs associated with the generation of that revenue are matched (recorded in the same fiscal period) Costs with no particular association to the revenue are recorded in the period they are incurred Consistency The same accounting treatment is given to comparable transactions from period to period Full Disclosure All facts that may influence the judgment of an informed reader must be presented in the financial statements or the accompanying notes Materiality The relative size and importance of an item to the business entity Does the information influence an informed reader? Industry Practices Accounting and/or reporting does not conform to GAAP Driven by governmental regulation and/or industry peculiaritiesn Transaction Approach Transactions are recorded if theyo Affect the financial position of the entityo Can be reasonably determined in monetary termsn Cash Basis Usually not GAAP Does not provide reasonable information about the earning capability of the entity in the short runo Recognize revenue when cash is collectedo Recognize expense when cash is paidn Accrual Basis Supports the time period assumption The result is more representationalo Revenue recognized when realizedo Expenses recognized when incurred More complex than cash basis; numerous year-end adjustments requiredChapter 2Introduction to Financial Statements and Other Financial Reporting Topics PPT 2Forms of Business Entities Sole proprietorship One owner Not legally separate from its owner Partnership Two or more owners Each is personally responsible for the debts of the partnership Corporation Ownership evidenced by shares of stock The corporation is recognized as a separate legal entityThe Financial Statements Balance Sheet (Statement of Financial Position) Reports assets, liabilities, and equity as of a particular date Accounting equation:o Assets = Liabilities + Stockholders EquityArticulation of financial statementsPPT 4PPT 5PPT 6 Statement of Stockholders Equity (Reconciliation of Stockholders Equity Accounts) Reconciles beginning and ending balances of stockholders equity accountso Retained earnings Links the balance sheet to the income statement Increased by net income Decreased by losses and dividends paid to shareholders Income Statement (Statement of Earnings) Summarizes revenues and expenses and gains and losses for the reporting period PPT 7 Statement of Cash Flows (Statement of Inflows and Outflows of Cash) Details the inflows and outflows of cash during the same period covered by the income statement Notes An integral part of the financial statements International Business Machines: Disclosure of Contingencies Microsoft: Disclosure of Subsequent Events PPT 9The Accounting Cycle Recording Transactions A transaction is an internal or external event that causes a change in a companys assets, liabilities, or stockholders equity Recorded in a journal (journal entry)o Double-entry system utilizes debits and credits Posted to general ledger accountsPPT 12 Recording Adjusting Entries Required by the accrual basis of accounting Prepared at the end of the fiscal period Records (recognizes) for the current periodo Expenses incurredo Revenues earned Recorded in the general journal then posted to the general ledgerPPT 13 Preparing the Financial Statements Based on the adjusted general ledger dataPPT 15Auditors Opinion Unqualified opinion The financial statements present fairly the financial position and results of operations in conformity with generally accepted accounting principles For the user, the highest degree of reliability T. Rowe Group, Inc.: Unqualified Audit Opinion Other opinions issued by auditors Qualifiedo With certain exception, the statements present fairly the results of operation and financial position Adverseo The financial statements do not present fairly the results of operations and financial position Disclaimer of opiniono No opinion is expressedo Review Less in scope than audit An opinion is not expressedo Compilation Presents only the financial information provided by management No opinion or any other assurance is given Auditors Report on the Firms Internal Controls Required by Sarbanes-Oxley Gives auditors opinion of:o Managements assessment of internal controlo The effectiveness of those controls T. Rowe Group, Inc.: Auditors Report on the Firms Internal Controls Managements Responsibility for Financial Statements Management is responsible for the content of the financial statements Management provides a report on the firms internal control system T. Rowe Group, Inc.: Report of Management on Internal Control and Financial Reporting Kellogg Company: Managements Responsibility for Financial StatementsPPT 26 The SECs Integrated Disclosure System 10-Ko Annual filing (audited)o Includes financial statements plus: Information on the business entity Market information Management discussion and analysis (MDA) Directors, executive officers, and their compensation Related party transactions 10-Qo Quarterly filing (unaudited) 8-Ko Current reportPPT 27 Proxy Notice and authorization of shareholder voting rights on corporate actions Content and form governed by the SECSummary Annual Report Highly condensed financial information Must be accompanied by a proxy containing full financial information Not adequate for financial analysisPPT 28The Efficient Market Hypothesis Capital markets generate security prices that reflect worth Publicly available information is reflected in share prices Investors will be harmed if full disclosure is not made Method of disclosure (body or notes) does not impact value The benefit of making disclosure outweighs the costPPT 29Ethics Ten essential values central to interpersonal relations Seven-step decision model developed by the American Accounting Associations 1988 project on professional and ethics SEC requires: A statement in the 10-K filing whether the firm has a code of ethics that applies to top management The code of ethics is available either through the 10-K filing or at the companys websitePPT 32Harmonization of International Accounting Standards Accounting standards have varied by country The IASB (successor to the IASC) produces International Financial Reporting Standards (IFRSs) These standards are not enforceable by the IASB Standards have received wide voluntary adoption Within the U.S., conflict between the SEC and the securities exchanges The FASB actively participates in the harmonization of international accounting standardsPPT 33Consolidated Statements Parent consolidates with the subsidiary Report results of operations separately Sum subsidiary and parent results of operations Control Legal control (ownership of majority of outstanding shares) Effective control (ability to elect a majority a board of directors) FASB requires consolidation for: Majority owners Owners to whom the risks and rewards of control accruePPT 34Accounting for Business Combinations Purchase method accounting is required Record assets and liabilities acquired at their fair values Excess of purchase price over fair value of net assets acquired is reported as goodwillChapter 3Balance Sheet PPT 2Basic Elements of the Balance Sheet Monaco Coach Corporation: Consolidated Balance Sheets, Report Form Cabot Corporation: Consolidated Balance Sheets, Account Form PPT 5 Assets Probable future economic benefits obtained or controlled by an entity as a result of past transactions or eventso Physicalo Intangible PPT 6 Current assetso Assets in the form of cash, that will be converted into cash, or will converse the use of cash during the operating cycle or within a year, whichever is longero Reported on the balance sheet in order of liquidity Seachange International, Inc.: Consolidated Balance Sheet (in Part) Illustration of Cash, Marketable Securities, and Accounts Receivableo Marketable securities carried as current investments are reported at current market valueo Accounts receivable are reported net of an allowance of estimated uncollectible accountso Inventories are carried at lower of cost or market value Steel Dynamics, Inc.: Consolidated Balance Sheets (in Part) Illustration of Inventoryo Prepaids are expenditures made in advance of the use of the service or goodPPT 11 Long-term assetso Tangible assets including the operational assets of land, buildings, machinery, and construction in progresso Accumulated depreciation measures the portion of a long-term asset that has been written off to expensePPT 15o Depreciation methods commonly usedPPT 16 Straight-line method Declining balance methodPPT 17 Sum-of-the-years-digits methodPPT 18 Units-of-production methodo Leases are classified as operating (payments are expensed) or capital Assets acquired under capital leases are reported on the balance sheet, and are amortized (depreciation)PPT 19o Long-term investments in debt or equity securities These investments are held to maintain a business relationship or to exercise control Debt investments are classified as “held-to-maturity” or “available-for-sale” Hold-to-maturity securities are carried at amortized cost Available-for-sale securities are carried at amortized cost with adjustments to current market value Equity investments are classified as “available for sale” Carried at current market value Exception: If ability to exercise significant influence exists, the “equity method” is applied and the investment is carried at historical cost with proportional adjustments for investee net income and dividends received from investee Gentex Corporation: Consolidated Balance Sheets (in Part) Illustration of Investmentso Intangibles are generally reported at their historical cost and amortized over their useful life Exceptions: Goodwill is not amortized but subject to annual impairment review; research and development is expensed as incurred Microsoft Corporation: Consolidated Balance Sheets and Selected Notes Illustrate IntangiblesPPT 23 Liabilities Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactionsPPT 24 Current liabilitieso Obligations whose liquidation is reasonably expected to require the use of existing current assets, or the creation of other current liabilities, within one year or the operating cycle, whichever is longer Starbucks Corporation: Current LiabilitiesPPT 26 Long-term liabilitieso Due in a period beyond one year or operating cycleo Relate to financing arrangement of assets and operational obligationso Liabilities relating to financing agreements Notes payablePPT 29 Promissory notes that may be secured by property Bonds payable Exchange price is dependent on the difference between the face rate of the bond and the yield (effective) rate that the bond is sold to achieve Resulting premium or discount is amortized over the term of the bond Convertible bonds are present debt that may be exchanged for equity ownership positions at the option of the bondholder Quantum Corporation: Convertible Bonds United Stationers Inc.: Credit AgreementsPPT 30o Liabilities relating to operational obligations Deferred taxes represent taxes that will be paid in future tax years Arise from differences between financial accounting and tax code treatment of various items of revenue and expense Warranty obligations are recognized at the time of sale Estimated to achieve matching of revenue and the associated expenses of that revenue General Motors Corporation: Warranty Obligations Minority interest reflects the ownership of minority shareholders in the equity of consolidated subsidiaries that are less than wholly owned Proposed GAAP will require that minority interest be presented as a part of stockholders equity eBay Inc.: Minority Interest Redeemable preferred stock is subject to mandatory redemption requirements and may have characteristics more like debt than equity The stockholders equity section should not include redeemable preferred stock Wendys International, Inc.: Redeemable Preferred StockPPT 32 Stockholders Equity The residual ownership in the assets of an entityo Usually divided into two categories: Paid-in capital Retained earnings Paid-in capitalo Two basic types: Common stock Common stock shares in all the stockholders rights and represents ownership that has voting and liquidation rights Preferred stock Characteristics of preferred stock Seldom has voting rights Preference as to dividends Accumulation of dividends Participation in excess of stated dividend rate Convertibility into co