会计英语Chapter 1
企业会计准则2024中英对照
企业会计准则2024中英对照Enterprise Accounting Standards 2024Chapter 1: General Principles1.1 Purpose and Basis1.2 Scope of ApplicationThis standard is applicable to all enterprises engaged in production or business activities in the People's Republic of China. The specific accounting treatment shall be determined based on the nature and size of the enterprise.Chapter 2: Accounting Assumptions2.1 Going Concern AssumptionEnterprises are assumed to continue operating in the foreseeable future. Therefore, accounting records and financial statements should be prepared on the basis of this assumption.2.2 Accrual Basis AssumptionTransactions and events are recorded based on their economic substance and are recognized in the accounting records and financial statements when they occur, rather than when cash is received or paid.Chapter 3: Recognition and Measurement of Assets, Liabilities, and Equity3.1 Recognition of AssetsAn asset should be recognized if it is probable that future economic benefits associated with the asset will flow to the enterprise and the cost or value of the asset can be reliably measured.3.2 Recognition of LiabilitiesA liability should be recognized if it is probable that an outflow of economic benefits will be required to settle the obligation and the amount of the obligation can be reliably measured.3.3 Measurement of AssetsAssets should be initially measured at cost. Subsequently, assets should be measured at cost less accumulated depreciation, impairment loss, or fair value if the fair value is reliably measurable.3.4 Measurement of LiabilitiesLiabilities should be measured at the amount of proceeds received or receivable in exchange for the obligation. If the amount received or receivable is not fair value, the present value of the future cash outflows should be used as the measurement basis.4.1 Revenue RecognitionRevenue should be recognized when it is probable that future economic benefits will flow to the enterprise, and the amount of revenue can be reliably measured.4.2 Expense RecognitionExpenses should be recognized when it is probable that an outflow of economic benefits will be required to settle the related obligations and the amount of the expense can bereliably measured.Chapter 5: Presentation and Disclosure of Financial Statements5.1 Balance SheetThe balance sheet should present the financial position of the enterprise at a particular date, presenting assets, liabilities, and equity.5.3 Statement of Cash FlowsThe statement of cash flows should provide information about the cash flows of the enterprise during a particular period, classified into operating activities, investing activities, and financing activities.Chapter 6: Consolidated Financial Statements6.1 Consolidation PrinciplesConsolidated financial statements should be prepared when an enterprise has control over another entity or entities.6.2 Consolidation Procedures7.1 Acquisition Method7.2 Goodwill。
会计英语第四版参考答案
会计英语第四版参考答案Chapter 1: Introduction to Accounting1. What is accounting?- Accounting is the systematic recording, summarizing, and reporting of financial transactions and events of a business entity.2. What are the main functions of accounting?- The main functions of accounting are to providefinancial information for decision-making, ensure compliance with laws and regulations, and facilitate the management of a business.3. What are the two main branches of accounting?- The two main branches of accounting are financial accounting and management accounting.4. What is the purpose of financial accounting?- The purpose of financial accounting is to provide an accurate and fair representation of an entity's financial position and performance to external users.5. What is the double-entry bookkeeping system?- The double-entry bookkeeping system is a method of recording financial transactions in which every transactionis recorded twice, once as a debit and once as a credit, to maintain the equality of the accounting equation.Chapter 2: Accounting Concepts and Principles1. What are the fundamental accounting concepts?- The fundamental accounting concepts include the accrual basis of accounting, going concern, consistency, and materiality.2. What is the accrual basis of accounting?- The accrual basis of accounting records transactions when they occur, regardless of when cash is received or paid.3. What is the going concern assumption?- The going concern assumption is the premise that a business will continue to operate for the foreseeable future.4. What is the principle of consistency?- The principle of consistency requires that an entity should apply accounting policies consistently over time.5. What is the principle of materiality?- The principle of materiality states that only items that could potentially affect the decisions of users of financial statements are included in the financial statements.Chapter 3: The Accounting Equation and Financial Statements1. What is the accounting equation?- The accounting equation is Assets = Liabilities +Owner's Equity.2. What are the four main financial statements?- The four main financial statements are the balance sheet, income statement, statement of changes in equity, and cashflow statement.3. What is the purpose of the balance sheet?- The balance sheet provides a snapshot of an entity's financial position at a specific point in time.4. What is the purpose of the income statement?- The income statement reports the revenues, expenses, and net income of an entity over a period of time.5. What is the purpose of the cash flow statement?- The cash flow statement reports the cash inflows and outflows of an entity over a period of time.Chapter 4: Recording Transactions1. What is a journal entry?- A journal entry is the initial recording of atransaction in the general journal.2. What are the steps in the accounting cycle?- The steps in the accounting cycle are analyzing transactions, journalizing, posting, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries.3. What is the difference between a debit and a credit?- A debit is an increase in assets or a decrease inliabilities or equity, while a credit is an increase in liabilities or equity or a decrease in assets.4. What are adjusting entries?- Adjusting entries are made at the end of an accounting period to ensure that revenues and expenses are recorded in the correct period.5. What is the purpose of closing entries?- Closing entries are made to transfer the balances of temporary accounts to the owner's equity account and to prepare the accounts for the next accounting period.Chapter 5: Accounting for Merchandising Businesses1. What is a merchandise inventory?- A merchandise inventory is the stock of goods held by a business for sale to customers.2. What is the cost of goods sold?- The cost of goods sold is the direct cost of producing the merchandise sold during an accounting period.3. What is the gross profit?- The gross profit is the difference between the sales revenue and the cost of goods sold.4. What is the difference between a perpetual and a periodic inventory system?- A perpetual inventory system updates inventory records in real-time with each sale or purchase, while a periodicinventory system updates inventory records at specific intervals, such as at the end of an accounting period.5. What is the retail method of inventory pricing?- The retail method of inventory pricing is a method of estimating the cost of ending inventory by applying a cost-to-retail ratio to the retail value of the inventory.Chapter 6: Accounting for Service Businesses1. What are the main differences in accounting for service businesses compared to merchandise businesses?- Service businesses do not have inventory and their primary expenses are typically labor and overhead costs.2. What is the main source of revenue for service businesses? - The main source of revenue for service businesses is the fees charged for the services provided.3. What are the typical expenses。
中级财务会计Chapter-01-Assignments-and-Answers讲解学习
Select the best answer for each of the following.M1-1 Accruing net losses on noncancelable purchase commitments for inventory is anc. Consistencyd. MaterialityThe information provided by financial reporting pertains toIndividual companies, rather than to industries or the economy as a whole or to b. Individual companies and industries, rather than to the economy as a whole or to members of society as consumers.c. Individual companies and the economy as a whole, rather than to industries or to members of society as consumers.d. Individual companies, industries, and the economy as a whole, rather than to members of society as consumers.M1-3 According to Statement of Financial Accounting Concepts No. 2, an interim earnings report is expected to have which of the following?Predictive Feedbackvalue valueNoYesNod. No YesM1-4 A patent, purchased in 2007 and being amortized over a 10-year life, was determined to be worthless in 2010. The write-off of the asset in 2010 is an example of which of the following principles?d. ObjectivityAn accrued expense is an expenseb. Incurred and paidd. Not reasonably estimableM1-6 Which of the following accounting concepts states that an accounting transaction should be supported by sufficient evidence to allow two or more qualified individuals to arrive at essentially similar measures and conclusions?c. Periodicityd. Stable monetary unitM1-7 Which of the following is considered a pervasive constraint of providing financial Statement of Financial Accounting Concepts No. 2?c. Timelinessd. VerifiabilityM1-8 The valuation of a promise to receive cash in the future at present value on the financial statements of a company is valid because of the accounting concept ofa. EntityM1-9 Under Statement of Financial Accounting Concepts No. 2, which of the following relates to both relevance and reliability?a. Timelinessb. NeutralityM1-10 Under Statement of Financial Accounting Concepts No. 6, which of the following, in the most precise sense, means the process of converting noncash resources and rights into cash or claims to cash?a. Allocationb. RecordationC1-3 Accounting Assumptions and PrinciplesCertain accounting assumptions and principles have had an important impact on the development of generally accepted accounting principles. The following is a list of these assumptions and principles as well as a list of statements describing certain accounting practices.A. Entity E. Monetary unitB. Continuity F. RealizationC. Period of time G. MatchingD. Historical cost H. ConservatismA 1. The business, rather than its owners, is the reporting unit.G 2. Depreciation costs are expensed in the periods of use rather than at the time the asset is acquired.E 3. Accounting measurements are reported in dollars.C 4. The year is the normal reporting unit.B 5. In the absence of evidence to the contrary, the company will operate long enough to carry out its existing commitments.F 6. Revenue is usually recognized at the time of sale.D 7. Exchange price is retained in the accounting records.H 8. An accounting alternative is selected that is least likely to overstate assets and income.RequiredSelect the accounting assumption or principle that justifies each accounting practice and place the appropriate letter on the line preceding the statementC1-4 Qualitative CharacteristicsIn FASB Statement of Concepts No. 2, several qualitative characteristics of useful accounting information were identified. The following is a list of these qualities as well as a list of statements describing the qualities.A. Comparability H. VerifiabilityB. Understandability I. NeutralityC. Relevance J. RepresentationalD. Reliability faithfulnessE. Predictive value K. ConsistencyF. Feedback value L. MaterialityG. TimelinessH 1. Ability of measurers to form a consensus that the selected accounting method has been used without error or bias.G 2. Making information available to decision makers before it loses its capacity to influence decisions.C 3. Capacity to make a difference in a decision.B 4. Overall qualitative characteristic.I 5. Absence of bias intended to influence behavior in a particular direction.D 6. Reasonably free from bias.E 7. Helps decision makers forecast correctly.J 8. Validity.A 9. Interactive quality; helps explain similarities and differences between two sets of facts.L 10. Quantitative “threshold” constraint.K 11. Conformity from period to period.F 12. Helps decision makers confirm or change prior expectations.RequiredPlace the appropriate letter identifying each term on the line in front of the statement describing the quality.C1-5 Cost and Expense RecognitionAn accountant must be familiar with the concepts involved in determining earnings of a company. The amount of earnings reported for a company is dependent on the proper recognition, in general, of revenue and expense for a given time period. In some situations costs are recognized as expenses at the time of product sale; in other situations guidelines have been developed for recognizing costs as expenses or losses by other criteria.Required1. Explain the rationale for recognizing costs as expenses at the time of product sale.2. What is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain.3. Some expenses are assigned to specific accounting periods on the basis of systematic and rational allocation of asset cost. Explain the underlying rationale for recognizing expenses on this basis.1. Some costs are recognized as expenses on the basis of a presumed direct association with specific revenue. This presumed direct association has been identified both as "associating cause and effect" and as the "matching concept." Direct cause-and-effect relationships can seldom be conclusively demonstrated, but many costs appear to be related to particular revenue, and recognizing them as expenses accompanies recognition of the revenue. Generally, the matching concept requires that the revenue recognized and the expenses incurred to produce the revenue be given concurrent periodic recognition in the accounting records. Only if effort is properly related to accomplishment will the results, called income, have useful significance concerning the efficient utilization of business resources. Thus, applying the matching principle is a recognition of the cause-and-effect relationship that exists between expense and revenue. Examples of expenses that are usually recognized by associating cause and effect are sales commissions, freight-out on merchandise sold, and cost of goods sold or services provided.2. Some costs are assigned as expenses to the current accounting period because (a) their incurrence during the period provides no discernible future benefits; (b) they are measures of assets recorded in previous periods from which no future benefits are expected or can be discerned; (c) they must be incurred each accounting year, and no build-up of expected future benefits occurs; (d) by their nature they relate to current revenues even though they cannot be directly associated with any specific revenues; (e) the amount of cost to be deferred can be measured only in an arbitrary manner or great uncertainty exists regarding the realization of future benefits, or both; (f) uncertainty exists regarding whether allocating them to current and future periods will serve any useful purpose. Thus, many costs are called "period costs" and are treated as expenses in the period incurred because they have neither a direct relationship to revenue earned nor can their occurrence be directly shown to give rise to an asset. The application of this principle of expense recognition results in charging many costs to expense in the period in which they are paid or accrued for payment. Examples of costs treated as period expenses would include officers' salaries, advertising, research and development, and auditors' fees.3. In the absence of a direct basis for associating asset cost with revenue, and if the asset provides benefits for two or more accounting periods, its cost should be allocated to these periods (as an expense) in a systematic and rational manner. Thus, when it is impractical, or impossible, to find a close cause-and-effect relationship between revenue and cost, this relationship is often assumed to exist. Therefore, the asset cost is allocated to the accounting periods by some method. The allocation method used should appear reasonable to an unbiased observer and should be followed consistently from period to period. Examples of systematic and rational allocation of asset cost would include depreciation of fixed assets, amortization of certain intangibles, and allocation of rent and insurance.C1-9 Accruals and DeferralsGenerally accepted accounting principles require the use of accruals and deferrals in the determination of income.Required1. How does accrual accounting affect the determination of income? Include in your discussion what constitutes an accrual and a deferral, and give appropriate examples of each.2. Contrast accrual accounting with cash accounting.1. Accrual accounting recognizes and reports the effects of transactions and other events on the assets and liabilities of a company in the time periods to which they relate rather than only when cash is received or paid. Accrual accounting attempts to match revenues and the expenses associated with those revenues in order to determine net income for an accounting period. Revenues are recognized and recorded when earned. Expenses are recognized and recorded as follows:•Associating Cause and Effect. Some expenses are recognized and recorded on a presumed direct association with specific revenue.• Systematic and Rational Allocation. In the absence of a direct association with specific revenue, some expenses are recognized and recorded by attempting to allocate expenses in a systematic and rational manner among the periods in which benefits are provided.• Immediate Recognition. Some costs are associated with the current accounting period as expenses because (1) costs incurred during the period provide no discernible future benefits, (2) costs recorded as assets in prior periods no longer provide discernible benefits, or (3) allocating costs either on the basis of association with revenues or among several accounting periods is considered to serve no useful purpose.An accrual represents a transaction that affects the determination of income for the period but has not yet been reflected in the cash accounts of that period. Accrued revenue is revenue earned but not yet collected in cash. An example of accrued revenue is accrued interest revenue earned on bonds from the last interest payment date to the end of theaccounting period. An accrued expenses is an expense incurred but not yet paid in cash. An example of an accrued expense is salaries incurred for the last week of the accounting period that are not payable until the subsequent accounting period.A deferral represents a transaction that has been reflected in the cash accounts of the period but has not yet affected the determination of income for that period. Deferred (prepaid) revenue is revenue collected or collectible in cash but not yet earned. An example of deferred (prepaid) revenue is rent collected in advance by a lessor in the last month of the accounting period, which represents the rent for the first month of the subsequent accounting period. A deferred (prepaid) expense is an expense paid or payable in cash but not yet incurred. An example of a deferred (prepaid) expense is an insurance premium paid in advance in the current accounting period, which represents insurance coverage for the subsequent accounting period.2. In cash accounting, the effects of transactions and other events on the assets and liabilities of a company are recognized and reported only when cash is received or paid; while in accrual accounting, these effects are recognized and reported in the time periods to which they relate. Because cash accounting does not attempt to match revenues and the expenses associated with those revenues, cash accounting is not in conformity with generally accepted accounting principles.C1-10 Revenue RecognitionThe following are brief descriptions of several companies in different lines of business.A. Company A is a construction company. It has recently signed a contract to build a highway over a three-year period. A down payment was collected; the remaining collections will occur periodically over the construction period based upon the degree of completion.B. Company B is a retailer. It makes sales on a daily basis for cash and on credit cards.C. Company C is a health spa. It has recently signed contracts with numerous individuals to use its facilities over a two-year period. The contract price was collected in advance.D. Company D is a land development company. It has recently begun developing a “retirement community” and has sold lots to senior citizens. The sales contract requires a small down payment and periodic payments until completion of the roads and a clubhouse, after which the remainder of the purchase price is due. Prior to this point, a purchaser may cancel the contract and receive a refund of all payments.RequiredDescribe when revenue should be recognized by each company. If revenue should not be recognized at the time of sale, indicate what method should be used to recognize the revenue. Justify your decision.A. Company A should recognize revenue under the percentage of completion method during production based upon the percentage of the highway completed each period. This approach is reasonable because realization takes place based upon the degree completed, and at that point a percentage of the revenue has been earned.B. Company B should recognize revenue at the time of sale because realization has occurred and revenue has been earned because the earning process is substantially complete.C. Company C should recognize revenue periodically under the proportional performance method based on the services completed to date. Although realization occurred at the time the contracts were signed, revenue was not yet earned because the earning process had not been completed.D. Company D should recognize revenue periodically under the installment method or cost recovery method until the roads and clubhouse are completed. This is because realization is uncertain up to this point and the revenue has not been earned because the earning process has not been substantially completed.。
大学课程《会计英语》PPT课件：Chapter 1 Unit 3
Matching
Description: Matching refers to the timing of recognition of revenues and expenses in the income statement. Under this concept, all expenses incurred in earning revenue should be recognized in the same period the revenue is recognized.
useful in accounting. Distinguish between capital expenditures and revenue
expenditures. State how materiality is related to the distinction
between capital and revenue expenditures. Explain the significance of reporting the economic
Differentiate Capital and Revenue Expenditures
Capital expenditures are expenditures expected to yield benefits beyond the current accounting period, that is, have future cash flows, and thus should be added to the plant and equipment or capital asset account.
substance of transactions, not just their form.
会计英语 翻译chapter1
Chapter one Introduction to Accounting 1.1 Bookkeeping and AccountingAccounting is an information system that identifies，measures，records and communicates relevant，reliable，consistent，and comparable information about an organization’s economic activity. Its objective is to help people make better decisions.An understanding of the principles of bookkeeping and accounting is essential for anyone who is interested in a successful career in business. The purpose of bookkeeping and accounting is to provide information concerning the financial affairs of a business. Owners, managers, creditors, and governmental agencies need this information.An individual who earns living by recording the financial activities of business is known as a bookkeeper, while the process of classifying and summarizing business transactions and interpreting their effects is accomplished by an accountant. Accountant is the individual who understands the accounting principles, theoretical and practical application, and can manage, analyze, and interpret the accounting records. The bookkeeper is concerned with techniques involving the recording of transactions, and the accountant’s objective is the use of data for interpretation.第一章['tʃæptə]会计导论[.intrə'dʌkʃən]1.1 簿记与会计会计是一个信息系统，[ai'dentəfai]辨别、['meʒəz]测量、记录和交流相关的['reləvənt]、可靠的[ri'laiəbl]、持续的[kən'sistənt]和可比的['kɔmpərəbl]一个组织经济活动的信息。
大学财务会计专业英语教材
大学财务会计专业英语教材In recent years, the field of accounting has witnessed significant advancements and developments, necessitating comprehensive and up-to-date academic resources to meet the demands of students studying finance and accounting. With the increasing globalization of business and finance, proficiency in English is an essential skill for accounting professionals, particularly those specializing in financial accounting. Therefore, the creation of a specialized English textbook for university-level finance and accounting students is of great importance.Chapter 1: Introduction to Financial Accounting1.1 The Role and Importance of Financial Accounting1.2 Basic Concepts and Principles in Financial AccountingChapter 2: Preparation of Financial Statements2.1 The Accounting Equation2.2 Recording Transactions: The Double-Entry System2.3 The Chart of Accounts2.4 Journalizing and Posting Transactions2.5 Trial BalanceChapter 3: Income Statement and Statement of Financial Position3.1 Understanding Income Statement3.2 Income Statement Components3.3 Statement of Financial Position: Assets, Liabilities, and EquityChapter 4: Revenue Recognition and Measurement4.1 Revenue Recognition Principles4.2 Measurement of Revenue: Sales, Services, and Other IncomeChapter 5: Expense Recognition and Measurement5.1 Expense Recognition Principles5.2 Measurement of Expenses: Cost of Goods Sold, Operating Expenses, and OthersChapter 6: Cash Flow Statements6.1 Importance and Purpose of Cash Flow Statements6.2 Operating, Investing, and Financing Activities6.3 Preparing a Cash Flow StatementChapter 7: Analysis and Interpretation of Financial Statements7.1 Financial Ratios and Metrics7.2 Horizontal and Vertical Analysis7.3 Limitations and Adjustments in Financial StatementsChapter 8: International Financial Reporting Standards (IFRS)8.1 Overview of IFRS8.2 IFRS Framework and Key Concepts8.3 Differences between IFRS and Generally Accepted Accounting Principles (GAAP)Chapter 9: Corporate Financial Reporting9.1 Financial Reporting for Corporations9.2 Disclosure Requirements and Auditors’ Opinions9.3 Regulatory Framework for Corporate Financial ReportingChapter 10: Accounting for Business Combinations10.1 Mergers and Acquisitions10.2 Consolidation Methods and Procedures10.3 Accounting for Non-controlling InterestsChapter 11: Financial Statement Analysis and Valuation11.1 Valuation of Assets and Liabilities11.2 Valuation Techniques: Cost Approach, Market Approach, and Income Approach11.3 Interpreting Financial Statement Analysis for Investment and Decision MakingBy providing a systematic overview of the principles, concepts, and techniques in financial accounting, this specialized English textbook addresses the needs of university students studying finance and accounting. It equips them with the necessary knowledge and skills to understand and apply financial accounting practices in an international context. With itscomprehensive content and clear explanations, this textbook serves as an indispensable resource for students pursuing a career in finance and accounting.。
IntermediateAccountingChapter1中级会计学课后习题部分
Chapter 1 Environment and Theoretical Structure of Financial AccountingQUESTIONS FOR REVIEW OF KEY TOPICSQuestion 1-5The primary objective of financial accounting is to provide investors and creditors with information that will help them make investment and credit decisions.Question 1-7GAAP (generally accepted accounting principles) are a dynamic set of both broad and specific guidelines that a company should follow in measuring and reporting the information in their financial statements and related notes. It is important that all companies follow GAAP so that investors can compare financial information across companies to make their resource allocation decisions.Question 1-9Auditors are independent, professional accountants who examine financial statements to express an opinion. The opinion reflects the auditors’ assessment of the statements' fairness, which is determined by the extent to which they are prepared in compliance with GAAP. The auditor adds credibility to the financial statements, which increases the confidence of capital market participants relying on that information. Question 1-11New accounting standards, or changes in standards, can have significant differential effects on companies, investors and creditors, and other interest groups by causing redistribution of wealth. There also is the possibility that standards could harm the economy as a whole by causing companies to change their behavior.Question 1-13The purpose of the conceptual framework is to guide the Board in developing accounting standards by providing an underlying foundation and basic reasoning on which to consider merits of alternatives. The framework does not prescribe GAAP.Question 1-14Relevance and faithful representation are the primary qualitative characteristics that make information decision-useful. Relevant information will possess predictive and/or confirmatory value. Faithful representation is the extent to which there is agreement between a measure or description and the phenomenon it purports to represent.The benefit from providing accounting information is increased decision usefulness. If the information is relevant and possesses faithful representation, it will improve the decisions made by investors and creditors. However, there are costs to providing information that include costs to gather, process, and disseminate that information. There also are costs to users in interpreting the information as well as possible adverse economic consequences that could result from disclosing information. Information should not be provided unless the benefits exceed the costs.Question 1-17Information is material if it is deemed to have an effect on a decision made by a user. The threshold for materiality will depend principally on the relative dollar amount of the transaction being considered. One consequence of materiality is that GAAP need not be followed in measuring and reporting a transaction if that transaction is not material. The threshold for materiality has been left to subjective judgment. Question 1-19The four basic assumptions underlying GAAP are (1) the economic entity assumption, (2) the going concern assumption, (3) the periodicity assumption, and (4) the monetary unit assumption.Question 1-22The four key broad accounting principles that guide accounting practice are (1) the historical cost or original transaction value principle, (2) the realization or revenue recognition principle, (3) the matching principle, and (4) the full disclosure principle.Question 1-23Two important reasons to base valuation on historical cost are (1) historical cost provides important cash flow information since it represents the cash or cash equivalent paid for an asset or received in exchange for the assumption of a liability, and (2) historical cost valuation is the result of an exchange transaction between two independent parties and the agreed upon exchange value is, therefore, objective and possesses a high degree of verifiability.Question 1-25The four different approaches to implementing the matching principle are:1. Recognizing an expense based on an exact cause-and-effect relationship between a revenue andexpense event. Cost of goods sold is an example of an expense recognized by this approach.2. Recognizing an expense by identifying the expense with the revenues recognized in a specific timeperiod. Office salaries is an example of an expense recognized by this approach.3. Recognizing an expense by a systematic and rational allocation to specific time periods.Depreciation is an example of an expense recognized by this approach.4. Recognizing expenses in the period incurred, without regard to related revenues. Advertising is anexample of an expense recognized by this approach.GAAP prioritizes the inputs companies should use when determining fair value. The highest and most desirable inputs, Level 1, are quoted market prices in active markets for identical assets or liabilities. Level 2 inputs are other than quoted prices that are observable including quoted prices for similar assets or liabilities in active or inactive markets and inputs that are derived principally from observable related market data. Level 3 inputs, the least desirable, are inputs that reflect the entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.EXERCISESExercise 1-2Requirement 1Requirement 2Amount owed at the end of year one $ 5,000Advertising costs incurred in year two 25,00030,000Amount paid in year two (15,000)Liability at the end of year two 15,000Less cash paid in year three (35,000)Advertising expense in year three $20,000*Exercise 1-7List A List Bo 1. Predictive value a. Decreases in equity resulting from transfers toowners.h 2. Relevance b. Requires consideration of the costs and value ofinformation.g 3. Timeliness c. Important for making interfirm comparisons.a 4. Distribution to owners d. Applying the same accounting practices over time.j 5. Confirmatory value e. Users understand the information in the context of thedecision being made.e 6. Understandability f. Agreement between a measure and the phenomenonit purports to represent.n 7. Gain g. Information is available prior to the decision.f 8. Faithful representation h. Pertinent to the decision at hand.k 9. Comprehensive income i. Implies consensus among different measurers.p 10. Materiality j. Information confirms expectations.c 11. Comparability k. The change in equity from nonowner transactions.m 12. Neutrality l. The process of admitting information into financial statements.l 13. Recognition m. The absence of bias.d 14. Consistency n. Results if an asset is sold for more than its bookvalue.b 15. Cost effectiveness o. Information is useful in predicting the future.i 16. Verifiability p. Concerns the relative size of an item and its effect ondecisions.Exercise 1-121. Disagree —Monetary unit assumption2. Disagree —Full disclosure principle3. Agree —The matching principle4. Disagree —Historical cost (original transaction value) principle5. Agree —Realization (revenue recognition) principle6. Agree —Materiality7. Disagree —Periodicity assumption。
国际会计International Accounting(chapter1)
10
In debt-oriented capital market: Companies annual reports tends to be more matter-of fact. Cause:Bank financing is the main source of capital for companies in those countries.The banker providing the loan doesn’t mainly depend on the annual reports (2) Substantive level equity-oriented capital market : Since stockholders are the primary providers of capital, the companies try to put the best face on them. Debt-oriented capital market : There is a tendency to under report earnings. e.g. German firms’ earnings computed in acc. principles are lower than that computed in U.S. acc. principles
11
(二) the level of sophistication of financial instruments equity-oriented countries-----complex and innovative financial instruments Debt-oriented countries----relatively simple (三) the level of globalization of capital markets -----The influence will vary with the type of nondomestic firms that enter a country’s capital market If the entering firms are from a country with high financial reporting and disclosure requirements,this will raise the level of financial reporting e.g. U.S. firms list on the London Stock Exchange
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Accounting English
GDUF
The Language of Business
accounting information system the system of records a business keeps to maintain its accounting information Accounting software
Accounting English
GDUF
Definition of Accounting
IFRS: Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions— in making reasoned choices among alternative courses of action
Accounting English
GDUF
The Language of Business
Communicate data/info to Help to make better decisions
• Expansion or reorganization • New product development • Marketing（e.g. advertising campaign) （
GDUF
ACCOUNTANT
A person who specializes in accounting field is known as accountant. Specializes: devote oneself to a special area of work (specialist)
Accounting English
GDUF
What comes following?
After this course, you should be well prepared for 2 elective bilingual courses including: Western Financial Theory and Practice & Corporate Finance.
• Electronic financial accounting system
Record the past information and suggest the trend in the future
Accounting English
GDUF
Definition of Accounting
Accounting English
GDUF
Definition of Accounting
Text book: Accounting is an information system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities that can be expressed in monetary terms.
relevant, reliable, and comparable
• Relevance PRIMARY QUALITIES • Reliability • Comparability SECONDARY QUALITIES GDUF
Accounting English
Definition of Accounting
Accounting English
GDUF
Accounting and Accounting Profession
UNIT 1
Accounting English
GDUF
Preview Question
Why you choose accounting as your major? What is accounting? What is accountant? Can you identify the differences between accounting and bookkeeping?
GDUF
Accounting English
The Language of Business
Personal lives Earn money Pay taxes Invest savings Budget earnings Plan for the future
Accounting English
Accounting English
GDUF
The Language of Business
Reorganization The action that may allow a company to emerge from bankruptcy. Reorganization consists of a series of agreements between the company, its creditors, and the court which allow for the company to repay its debts and alter its structure to prevent the same problems from arising again.
ACCOUNTING ENGLISH
Course Outline
GDUF
Why?
1 2 3
For Job Hunting
For Further Study
For The Unpredictable Future
Accounting English
Learning Objectives
Master accounting language Make fundamental accounting treatments in English Read financial statements in English Read simple financial articles in English Participate in English discussions about simple Accounting issues
Accounting English
GDUF
Careers in Accounting
The Division of Accounting Public accounting
• CPA • Big 4
Governmental accounting
• Non-profit organizations (for-profit organizations) • VFM instead of PROFIT
Text book: identifies, records, and communicates
• Identify: select transactions and events • Record: keep a chronological log • Communicate: prepare financial report
AICPA: The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.
Private accounting（management （ accounting） ）
• CMA, CIA, etc.
Accounting English
GDUF
Assurance vs Audit
Assurance
Independent Professional Services that improve information quality or its context. (AICPA)
Accounting English
GDUF
Objectives of accounting
Identification, measurement and communication of financial information about economic entities to interested persons. Esp. decision makers. Investors Creditors External users Employees Government … internal Management users
Objectives Unit 1 Level 1
Accounting English
ቤተ መጻሕፍቲ ባይዱ
GDUF
Need for the framework:
Standards setting: A coherent set of standards and rules should be built upon such same framework; For financial statement users: increase their understanding of and confidence in financial reporting For analysis: Enhance comparability among companies’ financial statement