中级财务会计 双语
中级财务会计(双语)第六章
Depreciation
Some important concepts:
b. Acquisition cost (or original cost) 取得成本 （原始成本） The initial value of the asset at its acquisition 资 产购买时的初始价值
Time-based methods
Sum-of-the-Years’-Digits (SYD) Method
This method multiplies the depreciable base by a fraction that declines each year and results in depreciation that decreases by the same amount each year. 在这种方法下，折旧 基础乘以一个逐年减小的分数，使得折旧每年以同 样的金额减少。
Time-based methods
Illustration 6-1
Acquisition cost: $250,000 Service life: 5 years Residual value: $40,000
250,000 40,000 Annual Depreciation $42,000 per year 5
Time-based methods
Accelerated method 加速折旧法
A depreciation method which allows faster write-offs than the straight-line method. 比 直线折旧法的折旧速度更快的折旧方法。
Benefits from using the asset
中级财务会计(双语)第三章
ห้องสมุดไป่ตู้
LOGO
Merchandising inventory
Merchandising Inventories:
Are often purchased by wholesale and retail company Are finished goods 成品 Ready to be sold to customers
Cost of Merchandising Inventories=purchase price + transportation costs (运输费) + warehousing costs (仓储费)
LOGO
Manufacturing inventory
LOGO
What is inventory
Inventories are:
① Are used in the production ▪ Manufacturing inventories 制造业存货 ② Something we purchase for resale ▪ Merchandising inventory 商品存货
LOGO
Periodic Inventory System
Inventory Beginning: 120,000 Purchase: 600,000 Sell: 540,000 (cost of goods sold)
Ending: 180,000 (by physical count) Cost of goods sold (inventory sale)=beginning inventory + inventory purchase – ending inventory =120,000+600,000-180,000
中级财务会计 英文
Intermediate Financial AccountingIntroductionFinancial accounting is a fundamental component of a company’s management and reporting process. It involves the recording, analysis, and reporting of a company’s financial transactions. A strong foundation in financial accounting is essential for any individual looking to pursue a career in finance or accounting. This document aims to provide an overview of intermediate financial accounting concepts and principles.The Accounting CycleThe accounting cycle is a series of steps that are followed in the financial accounting process to ensure accurate and reliable financial reporting. The cycle begins with the recording of transactions and ends with the preparation of financial statements. The key steps in the accounting cycle include:1.Identifying and Analyzing Transactions: This step involvesidentifying relevant financial transactions and analyzing their impact on the company’s financial position.2.Recording Journal Entries: Journal entries are recorded todocument the financial transactions. These entries are made in the generaljournal, which is a chronological record of all transactions.3.Posting to General Ledger: The information from the journal entriesis transferred to the general ledger accounts, which are used to summarizetransactions for each account.4.Preparing Trial Balance: A trial balance is prepared to ensure thatall debit and credit balances in the general ledger are equal. If there are noerrors, the total debits will equal the total credits.5.Adjusting Entries: Adjusting entries are made at the end of theaccounting period to record any transactions that have not been previouslyrecorded, such as accruals and prepayments.6.Preparing Financial Statements: Financial statements, including theincome statement, balance sheet, and cash flow statement, are prepared toreport the company’s financial performance and position.7.Closing Entries: Closing entries are made to transfer balances fromtemporary accounts (such as revenue and expense accounts) to permanentaccounts (such as retained earnings).8.Preparing Post-Closing Trial Balance: A post-closing trial balance isprepared to ensure that all temporary accounts have been closed and that the accounting records are ready for the next accounting period.Financial Statement AnalysisFinancial statement analy sis involves the examination of a company’s financial statements to assess its financial performance and position. It helps in understanding the company’s profitability, liquidity, solvency, and efficiency. The key tools and techniques used in financial statement analysis include:•Horizontal Analysis: Horizontal analysis compares financial statement items over multiple periods to identify trends and changes.•Vertical Analysis: Vertical analysis involves expressing each financial statement item as a percentage of a base amount, such as total assets or netsales, to assess the relative importance of each item.•Ratio Analysis: Ratio analysis involves calculating and interpreting financial ratios to assess the company’s liquidity, solvency, profitability, and efficiency.•Common Size Ratios: Common size ratios are used to compare the relative percentages of different items within a financial statement.•DuPont Analysis: DuPont analysis decomposes the return on equity (ROE) into its components to assess the company’s profitability, efficiency, and leverage.Revenue Recognition and Expense RecognitionThe principles of revenue recognition and expense recognition are fundamental to financial accounting. These principles determine when revenue and expenses should be recognized in the financial statements. The generally accepted accounting principles (GAAP) provide guidelines for revenue recognition and expense recognition.•Revenue Recognition: Revenue is generally recognized when it is earned and realizable. It is earned when the company has delivered goods or services to the customer, and it is realizable when the company can reasonably expect to collect the amount. There are specific criteria for recognizing revenue from different sources, such as sales of goods, provision of services, andinterest and dividends.•Expense Recognition: Expenses are recognized when they are incurred and have a cause-and-effect relationship with revenue. The matching principle requires expenses to be recognized in the same period as the revenuethey help generate. There are different methods of expense recognition, such as the accrual basis and the cash basis.Inventory Valuation MethodsInventory valuation is a crucial aspect of financial accounting, as it impacts the company’s profitability, assets, and financial ratios. There are different methods used to value inventory, including:•FIFO (First-In, First-Out): The FIFO method assumes that the first units of inventory purchased or produced are the first to be sold or used. Itresults in the cost of goods sold being based on the oldest inventory.•LIFO (Last-In, First-Out): The LIFO method assumes that the last units of inventory purchased or produced are the first to be sold or used. Itresults in the cost of goods sold being based on the most recent inventory.•Weighted Average Cost: The weighted average cost method calculates the average cost of inventory based on the average cost per unit. It is calculated by dividing the total cost of goods available for sale by the total units available for sale.Each inventory valuation method has its advantages and disadvantages, and the choice of method can have a significant impact on the company’s f inancial statements and taxes.ConclusionIntermediate financial accounting plays a vital role in providing accurate and reliable financial information for decision-making and reporting. Understanding the accounting cycle, financial statement analysis, revenue recognition and expense recognition principles, and inventory valuation methods is essential for anyone seeking to excel in the field of finance or accounting. By acquiring a solid foundation in these concepts, individuals can enhance their ability to interpret financial data and contribute to the success of their organizations.。
中级财务会计I(双语)161ch055.5 chapter 5
Classification
Current or Non-current Current Current or Non-current
Debt or Equity
Fair Value
Equity
Fair Value
5-14
LO 2
CLASSIFICATION IN THE STATEMENT
5-4
LO 1
STATEMENT OF FINANCIAL POSITION
Usefulness
Computing rates of return. Evaluating the capital structure. Assess risk and future cash flows. Assess the company’s:
2. Identify the major classifications of the statement of financial position.
3. Prepare a classified statement of financial position using the report and account formats. 4. Indicate the purpose of the statement of cash flows. 5. Identify the content of the statement of cash flows.
Tangible long-lived assets used in the regular operations of the business.
Physical property such as land, buildings, machinery, furniture, tools, and wasting resources (minerals).
财务会计-中级财务会计英文ch07 精品
- only the costs directly associated with the creation of the intangible asset.
Costs classified as R&D must be expensed in the period incurred.
The calculation of the amortization of intangible
assets follows the same principles as the depreciation
of tangible assets.
Intangible Assets Amortization of Cost
5. Expected actions of competitors, regulatory bodies, and others.
Intangible Assets Amortization of Cost
Intangible Assets With a Finite Life Are Amortized.
Intangible Assets
Chapter
7
Intermediate Accounting 12th Edition
Kieso, Weygandt, and Warfield
Prepared by Coby Harmon, University of California, Santa Barbara
Intangible Assets
Accounting
At acquisition: record at cost.
中级财务会计(双语)第四章
2
3 •
80
60
90
80
50
Only the Product 2 is impaired.
Adjusting Cost to Market
• When a company uses the LCM method to value inventories (if inventory value<cost), a write-down (减值) of inventory is required.
Applying LCM method
• The LCM method can be applied to individual inventory items, logical inventory categories, or the entire inventory.
• 市价与成本孰低法可以应用于个别存货项目、存货组合或 者整体存货。 Usually: use LCM method on individual inventory item 通常对单个存货项目计提减值 Under certain circumstances: use LCM method on logical inventory categories or the entire inventory 在某些特殊情况下，对存货组合或整体存 货计提减值
Total
415,000
347,000
Adjusting Cost to Market
• • • Write-down of inventory =415,000-347,000=68,000 Dr. Loss on write-down of inventory 68,000 Cr. Inventory valuation allowance 68,000
中级财务会计英文ch07
- cash paid, plus - the current market value of the noncash consideration given.
Intangible Assets Determination of Cost
patents are capitalized.
Patents estion
Batter-Up, Inc. has developed a new device. Patent registration costs consisted of $2,000 in attorney fees and $1,000 in federal registration fees. What is Batter-Up’s amortizable cost?
• Where the intangibles have indefinite useful lives, they are not amortized.
• Acquired intangibles should not be written off at acquisition.
Intangible Assets Amortization of Cost
expensed as incurred. Patents are amortized over the shorter of the
legal life (20 years) or their useful lives. Legal fees incurred to successfully defend
Intangible Assets
中级财务会计I(双语)课程ch06
More Complex Situations
Present Value Measurement
Deferred annuities
Valuation of long-term bonds
Effectiveinterest method of bond discount/ premium amortization
Illustration 6-1 Simple vs. Compound Interest
Year 1 $10,000.00 x 9% Year 2 $10,900.00 x 9% Year 3 $11,881.00 x 9%
$ 900.00 $ 10,900.00 $ 981.00 $ 11,881.00 $1,069.29 $ 12,950.29
Illustration: KC borrows $20,000 for 3 years at a rate of 7% per year. Compute the total interest to be paid for the 3 years.
Total Interest
Interest = p x i x n = $20,000 x .07 x 3 = $4,200
6-1
CHAPTER 6
ACCOUNTING AND THE TIME VALUE OF MONEY
Intermediate Accounting IFRS Edition
Kieso, Weygandt, and Warfield
6-2
Learning Objectives
1. Identify accounting topics where the time value of money is relevant. 2. Distinguish between simple and compound interest. 3. Use appropriate compound interest tables. 4. Identify variables fundamental to solving interest problems. 5. Solve future and present value of 1 problems. 6. Solve future value of ordinary and annuity due problems. 7. Solve present value of ordinary and annuity due problems. 8. Solve present value problems related to deferred annuities and
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Objective of Financial Accounting
• The objective of financial accounting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in making decisions in their capacity as capital providers.
• In America, it has 10 elements of financial statements.
Assets Liabilities Equity (or net assets) Investments by owners 业主投资 Distributions to owners 业主派得 Comprehensive income 综合收益 Revenues Expenses Gains 利得 Losses 损失
– Net operating cash flow=cash receipts-cash disbursement 净经营性现金流量=现金收入-现金支出
– NOCF>0
– A major drawback: over short periods of time, operating cash flows may not be indicative of the company’s long-run cash-generating ability. 企业短 期的经营性现金流量可能不能很好反映其长期获取现金的能 力。
Financial Accounting Environment • Providers of financial information
Profit-oriented companies Financial accounting
Not-for-profit entities Governmental and nonprofit accounting
Qualitative Characteristics
Decision usefulness
Overriding objective
Relevance 相关性
Faithful representation 如实反映
Primary characteristics
Qualitative Characteristics of Financial Reports
Relevance 相关性
Faithful representation 如实反映
Predictive Value
预测价值
Confirmatory Value
ቤተ መጻሕፍቲ ባይዱ验证价值
Completeness 完整性
Free from material error
无重大错报
Neutrality 中立性
Qualitative Characteristics of Financial Reports
recorded when incurred. – Net income=revenues-expenses 净利润=收入-费用
（or net loss if expenses are greater than revenues.） – Net income ≠ Net operating cash flow
Materiality 重要性 Dollar amount of an item (bad debts) Nature of an item (unlawful transaction)
• One practical justification: 一个实务判断
Conservatism 谨慎性
Elements of Financial Statements
Elements of Financial Statements
• Equity (or net assets)
– shareholders’ equity or stockholders’ equity – residual interest 剩余权益 (equity=assets-liabilities). – Exp. We open a new company. Its total assets are
Cash Basis Accounting
Accrual Basis Accounting
• Accrual Basis Accounting
– One of the accounting methods – Revenue is recorded when earned, expenses are
Accrual Basis Accounting
Exercise
• The company incurred utility costs of $35,000 in year one, and the insurance covers a three-year period.
Qualitative Characteristics of Financial Reports
Managerial Accounting
Financial Accounting Environment
• Financial information: financial statements and related disclosure notes
• Financial statements:
• Who: Reporting entity • Do what: Provide financial information (useful in
decision-making) • To whom: Capital providers
Objective of Financial Accounting
Households
Financial Accounting Environment
• Users of financial information (external)
Investors
Primary users
Creditors (banks, bondholders)
Employees
Labor unions
Customers
Suppliers
Government regulatory agencies (Securities and Exchange Commission)
Financial intermediaries (financial analysts, creditrating organizations…)
可验证性
及时性
Enhancing
characteristics
Understandability 可理解性
Constraints to Achieving Qualitative Characteristics
• Two constraints: 两个约束条件
Cost Effectiveness 成本效益原则 Segment report
a. Balance sheet or statement of financial position b. The income statement or statement of operation c. The statement of cash flows d. The statement of shareholders’ equity
Elements of Financial Statements
• Assets
– Future economic benefits – Obtained or controlled 拥有或控制
Our company purchased a building. (obtain) Capital lease (control) – Past transactions or events Our company is planning to purchase an
Financial Accounting Environment
• Users of financial information (external)
Financial Accounting
• Users of financial information (internal)
Managers, CFO, CEO the board of directors
Relevance 相关性
Qualitative Characteristics
Overriding Decision usefulness objective
Primary characteristics
Faithful representation
如实反映
Comparability 可比性
Verifiability Timeliness
Financial Accounting Environment
• The primary focus of financial accounting is on the information needs of investors and creditors.
Who provides financial information? Who uses financial information? Financial accounting & managerial accounting What is financial information?