1、企業會計學企業會計學 合肥工業大學會計系合肥工業大學會計系 楊昌輝楊昌輝 Email: 1.什么是會計？ 2.為什么要在非會計學專業開設這門課程？ 2.用什么語言來上這門課？ 3.怎樣才能有較好的學習效果？ The purpose and types of business organisations 1. The definition of organisations Definition An organisation is a social arrangement which pursues collective goals, which controls its own perform

2、ance and which has a boundary separating it from its environment. 1. The definition of organisations Example question An organisation is a social arrangement which pursues collective_ which controls its own performance and which has a boundary separating it from its environment. Which of the followi

3、ng words best completes this sentence? A. Profits B. Stakeholders C. Goals D. Tactics 2. Why do organisations exist? 2. Why do organisations exist? Example question What is the term given to the idea that the combined output of a number of individuals working together will exceed that of the same in

4、dividuals working separately? A. Sympathy B. Specialization C. Synergy D. Systems thinking 3. The common features of organisations 4. How organisations differ? 5. The types of organisations 5. The types of organisations 5. The types of organisations 5. The types of organisations 5. The types of orga

5、nisations Limited companies More money available; Reduced risk; Separation of ownership and control; Flexibility Unlimited companies Stakeholders in business organisations 1. The definition of stakeholders Definition Stakeholders are those individuals or groups that, potentially, have an interest in

6、 what the organisation does. 2. The types of stakeholders 2. The types of stakeholders Primary and secondary Primary stakeholders are stakeholders who have a contractual relationship with the organisation. Secondary stakeholders do not have such a relationship with the company. Primary stakeholders=

7、internal + connected stakeholders Secondary stakeholders=external stakeholders 2. The types of stakeholders Example question Which one of the following are examples of internal stakeholders? A. Shareholders B. Suppliers C. Employees D. Financiers 3. Stakeholder interests The scope and purpose of, fi

8、nancial statements for external reporting 1.Purpose of Financial Reporting To provide information about the financial position, financial performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions 2.Purpose of Financial Reporting t

9、hree types of business entities 3.The Entity Concept Example Assume that John decides to open up a gas station and coffee shop. The gas station made $250,000 in profits, while the coffee shop lost $50,000. How much money did John make? 3.The Entity Concept Example At a first glance, we would assume

10、that John made $200,000. However, by applying the business entity concept we realize that the gas station made $250,000 while the coffee shop lost $50,000. 4.The Entity Concept Exercise The business entity concept requires that a business is treated as being separated from its owners A.True B. False

11、 Answer: A Users and stakeholders needs 1. Users of Financial Reporting Shareholders Investors(potential) Creditors/lenders Governments Customers(B to B) Public Duties and responsibilities of those charged with governance 1.Duties and responsibilites of those charged with governance Corporate Govern

12、ance: to make sure the directors and operating systems are in their most efficiency. Agency Theory: directors interests are different from shareholders Stewardship Theory: directors are only steward of shareholders, interests are the same Stakeholders Theory: companies have responsbilities to all st

13、akeholders Duties of financial reporting are ultimately with director Conceptual framework 1. Overview What is conceptual framework A set of principles underlying the foundations of standards, itself is not a standard These principles apply when new standards are issued, updated, amended, or when th

14、ere is no standard. Understanding of this is very important for your future study. Seven sections of conceptual framework .The objective of financial statements .Underlying assumptions .Qualitative characteristics .The elements of financial statements .Recognition of the elements of financial statem

15、ents .Measurement of the elements of financial statements .Concepts of capital and capital maintenance 2. What is the objective of financial statement To provide information about the financial position, financial performance and changes in financial position of an entity that is useful to a wide ra

16、nge of users in making economic decisions. 3. Underlying assumptions Going concern: the company is in operation in the foreseeable future. Accruals:Transactions are recorded when revenues are earned or expenses are incurred Matching: revenue earned must be matched against the expenditure incurred in

17、 earning it. 4. Qualitative characteristics of financial information Understandability: information should be understandable by users who are assumed to have reasonable knowledge Comparability: for same entities over different periods accounting policy consistent. Between different entities disclosu

18、re of accounting policies 4. Qualitative characteristics of financial information Relevance: assist users in evaluating past and predicting future events, material information is relevant materiality material in amount, e.g. inventory figure material in nature, e.g. directors remuneration 4. Qualita

19、tive characteristics of financial information Reliability Faithful representation Substance over form Neutrality Prudence Completeness 5. the elements of financial statements Asset: a resource controlled by an entity as a result of past events and from which future economic benefits are expected to

20、flow to the entity Liability: a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow of economic benefits Equity: the residual interest in the assets of an entity after deducting all its liabilities. 5. the elements of financial state

21、ments Income: increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increase in equity, other than those relating to contributions from equity participants Expenses: decreases in economic benefits durin

22、g the accounting period in the form of outflows or depletion of assets or increases of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. 6. Alternative valuation bases Historical cost(歷史成本): transaction value This is the most common va

23、luation bases All items are initially recognized at historic cost! Advantage: reliable Disadvantage: may not relevant 6. Alternative valuation bases Replacement cost (重置成本)/current cost (現時 成本)：assets are carried at the amount it would cost to acquire an equivalent asset today. 在正常經營過程中， 為獲得具有同等運營能力

24、或 生產能力的資產而需付出的最低金額。 6. Alternative valuation bases Net realizable value(可變現凈值)： expected selling price less any costs 主要應用于IAS 2 Inventory 6. Alternative valuation bases Economic value present value of future cash flows The use of double entry and accounting systems Ledger accounts, books of prime e

25、ntry, and journals 1. From transaction to F/S Assorted transactions (source of documents, eg invoices) Categorized in books of Prime Entry Summarized in nominal ledger Listed as a trial balance Adjusted entries Financial statements (SOFP, SOCI) 2. Source documents Quotation: a business makes a writt

26、en offer to a customer to produce or deliver goods or services for a certain amount of money. Invoice: primarily a demand for payment.(include: name and address, date, what,quantity and price, trade discount,sales tax,payment due date) Credit note: a document sent by a supplier to a customer in resp

27、ect of goods returned or overpayment made by the customer. It is a negative invoice Debit note: a document sent by a customer to a supplier in respect of goods returned or an overpayment made. It is a formal request for the supplier to issue a credit note. 3. Books of prime entry Books of prime entr

28、y are books in which we first record transactions. Main books of prime entry: Sales day book Purchase day book Cash book Petty cash book Journal Memorandum ledgers Recording transactions and events sales, purchase and cash, etc 1.1 What is transaction? When there is an actually event happened! For e

29、xample: sales, purchases, payment of expense 1.2 Record transaction example 1. A introduced 20,000 of cash as capital into the business 1.2 Record transaction example 2. Purchased a machinery, paid 10,500 cash 1.2 Record transaction example 3. Paid 200 to repair the machine 1.2 Record transaction ex

30、ample 4. Purchase inventory on credit, 750. 1.2 Record transaction example 5. Spent 400 on petrol 1.2 Record transaction example 6.Sold goods for 750 cash 1.2 Record transaction example 7. Paid 600 in tax and insurance 1.2 Record transaction example 8. Made cash purchase of 80 1.2 Record transaction

31、 example 9. Withdrew 300 for his own expenses 1.2 Record transaction example 10. The cost of goods remaining unsold was 500. 1.3 Balance off the accounts and trial balance Sales Tax 2.1 Sales tax VAT value added tax Purchase of 1000, plus sales tax 15% Sales of 1500, plus sales tax 15% 2.1 Sales tax

32、 1. Sales tax is accounted for when the transaction occurs, it is not an expense or income on the income statement 2. Some sales tax is never recoverable, in that case, the tax suffered is an expense or included in the cost of the asset 3. Sales tax is calculated on the amount after all the discount

33、s (trade discounts, settlement discounts) 2.1 Sales tax example During 2011, Tony buys two vans and a car each costing 10,000 plus sales tax at 15%. The car will be used 70% for business use and 30% personal use. He depreciates vehicles on a straight line basis, vans over five years and cars over si

34、x years. What is his depreciation expense for the year. In the tax regime in which Tony operates sales tax is only recoverable on items used wholly for business purposes 2.1 Sales tax example answer Cost of 2 vans = 20,000 Depreciation = 20,000/5 = 4000 Cost of car = 10,000 X 1.15 = 11,500 Depreciat

35、ion = 11500 /6 = 1917 Total depreciation = 4000 + 1917 = 5917 IAS2 Inventory 3.1 What is inventory? current asset on the SOFP COS on the I/S inventory is generally accounted for as a year end adjustment via a journal entry, it is not an event! Inventory = quantity X valuation 3.2 Initial recognition

36、 Initial recognition: historical cost Include: 1. cost of purchase , e.g. purchase price, import duties. Note: sales tax is not included unless it is explicitly says so in the question. 2. Costs of conversion relating to production, e.g. direct/variable overheads 3. Other costs happed necessary to b

37、ring the inventory to its intended location and condition, e.g. transportation in. 3.2 initial recognition example According to IAS 2, which of the following should not be included in valuing the inventories of an entity? A. Labor costs B. Carriage in C. Administrative overheads D. Depreciation on f

38、actory machine Correct answer: C 3.3 subsequent measurement Basic rule: inventories should be measured at the lower of cost and net realizable value (NRV) Link to conceptual framework: prudence Calculation of NRV Estimated selling price Estimated costs of completion estimated selling and distributio

39、n costs 3.3 subsequent measurement example Tony is trying to value his inventory. He has the following information: Estimated selling price: 36; Costs incurred to date: 20 Further costs to complete the item: 12 Selling costs: 2 What is the NRV of his inventory? What is the value reported on the SOFP

40、 of this inventory? Answer : NRV=36 12 2= 22 valuation= lower of historical cost and NRV, thus 20 NOTE: NO NETTING OFF ! 3.4 accounting treatment Period one: 1. Purchase of $100 inventory; 2. Sold $70 ; 3. adjust closing inventory figure Period two: 1. adjust opening inventory figure; 2. sold 20$; 3

41、. purchase $50 3.4 accounting treatment Closing inventory adjustment Dr Inventory (SOFP) Cr COS (Closing inventory) (I/S) Opening inventory adjustment Dr COS (opening inventory) (I/S) Cr Inventory (SOFP) 3.5 theoretical methods of estimating cost First in first out Weighted average cost 3.5 theoreti

42、cal methods of estimating cost example IAS 16 tangible noncurrent assets 4.1 what is non current assets non current assets are assets which are intended to be used by the business on a continuing basis and include both tangible and intangible assets Tangible non current assets is covered by IAS 16 p

43、roperty, plant and equipment (PPE) Examples: land and building, plant and equipment, motor vehicles, furniture and fittings, computers. 4.2 initial recognition Initially recognized at Historical cost Purchase price: excluding sales tax unless explicitly says so in the question. Directly attributable

44、 costs incurred to bring the asset to its intended condition. E.g. initial delivery and handing costs, installation and assembly costs, testing,professional fees. The following may not be included: maintenance contract, administration and general overhead costs, staff training, repair, maintain and

45、service 4.2 initial recognition example What is the amount of the machine should be recognized as a PPE? Cost of machine: 20,000 Delivery costs: 200 Three year maintenance contract: 900 Installation costs: 500 Answer: 20,000 + 200 + 500 = 20700 4.3 subsequent measurement Cost model: always recognize

46、d at cost, depreciation based on cost , until derecognized. Revaluation model: IAS 16 allows an entity to revaluate its tangible assets, depreciation based on revalued Amount, until derecognized. A choice of accounting Policy; all items in the same class of assets must be revalued; sufficiently ofte

47、n to ensure the revalued amount is not materially different from its market value 4.3 subsequent measurement depreciation Residual value: expected proceeds/ scrap value at the end of the assets useful life Useful life: the number of years the business expects to make use of the asset. Accumulated de

48、preciation: total deprecation NBV: net book value NBV= cost accumulated depreciation =opening NBV depreciation Depreciation is the use of matching principle! 4.3 subsequent measurement depreciation Straight line depreciation: suitable for assets which are used up evenly over their useful life SLD =

49、(cost residual value)/useful life or = (cost residual value) * % Example: a machinery cost 100, useful life 3 years, residual value 10, calculate depreciation, acc dep and NBV 4.3 subsequent measurement depreciation Reducing balance deprecation: suitable for those assets which generate more revenue

50、in earlier years than in later years. RBD = depreciation rate X NBV Example: a machinery cost 6,000, depreciation rate is 40% reducing balance，calculate depreciation for the first three years. NOTE: do not consider residual value while using reducing balance 4.3 subsequent measurement depreciation a

51、ccounting treatment Dr Depreciation expense Cr Accumulated depreciation 4.3 subsequent measurement revaluation 1. Adjust cost account to revalued amount 2. Remove accdep charged on the asset 3. Put the balance to the revaluation reserve Accounting treatment Dr asset cost account Dr acc dep Cr revalu

52、ation reserve 4.3 subsequent measurement revaluation example A building costing 100, accdep of 20 has been charged, now revalued to 150. Answer Dr building 50 Dr accdep 20 Cr revaluation reserve 70 4.3 subsequent measurement depreciation revisited At the beginning of year 1, asset cost 40,000 Residu

53、al value 1,500 useful life 5 years, depreciation: 25% reducing balance, at the beginning of third year, change depreciation method to straight line. 4.4 derecognizing asset disposal 1. Remove the cost of the asset 2. Remove the accdep charged to date 3. Recognize profit or loss on disposal Intangibl

54、e non current assets And amortization 5.1 what is intangible non current assets IAS 38: intangible assets Identifiable non monetary asset without physical substance Examples include development expenditure, goodwill, concessions, patents, licenses, trade marks. Only consider research and development

55、 expenditure 5.2 what is research and development Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to a plan or design for the product

56、ion of new or substantially improved materials, devices, products, processes, systems or services before the startof commercial production or use. 5.3 accounting treatment Research expenditure: Dr research expense Cr Bank/payables Development expenditure: must capitalize as an intangible non current

57、 asset if all of the following satisfied. probable future economic benefits intention to complete and use/sell asset Resources adequate and available to complete and use it Ability to use/sell the asset Technically feasibility Expenditure can be measured reliably Dr intangible non current assets Cr

58、bank/ payables 5.3 accounting treatment example How to treat the following? 1. 10,000 salaries for market research staff sent out to canvass drivers opinions on a potential new car 2. 10,000 on materials to manufacture a prototype and 50,000 on salaries relating to its design and manufacture. The ne

59、w car is expected to go on sale in one year. Answer:1, research expense 10,000 2, recognize as development expenditure 60,000 5.4 amortization Accruals and prepayments 6.1 what is accruals and prepayments IAS 1 states that financial statements should be prepared on an accruals basis 6.1 what is accr

60、uals and prepayments Accruals are expenses incurred by the business during the accounting period but not yet paid for i.e. expenses in arrears Prepayments arise when expenses are paid for before they have been used i.e. expenses in advance 6.2 accruals and prepayment example Tony pays rent at the en