Enviar búsqueda
Cargar
1606899847-chp-2.ppt
•
Descargar como PPT, PDF
•
0 recomendaciones
•
8 vistas
A
AbdiqadirOsman
Seguir
Presentation
Leer menos
Leer más
Empresariales
Denunciar
Compartir
Denunciar
Compartir
1 de 35
Descargar ahora
Recomendados
2. Intr. fin. Statements and Other Fin. Reporting Topics.ppt
2. Intr. fin. Statements and Other Fin. Reporting Topics.ppt
Junaidrazaq
Ch03
Ch03
Padrong14
Ch14 wrd12e instructor_final
Ch14 wrd12e instructor_final
fsuttonnnu
WRD-27e-SE-PPT-Ch16.pptx
WRD-27e-SE-PPT-Ch16.pptx
christopherchonjo
Ch02 wrd12e instructor_final
Ch02 wrd12e instructor_final
fsuttonnnu
Chapter 2 Financial Accounting
Chapter 2 Financial Accounting
fsuttonnnu
Lecture1 overview (1)
Lecture1 overview (1)
Zheyi Ren
Small Business Management Chapter 10 Busby PowerPoint
Small Business Management Chapter 10 Busby PowerPoint
LeahBusby1
Recomendados
2. Intr. fin. Statements and Other Fin. Reporting Topics.ppt
2. Intr. fin. Statements and Other Fin. Reporting Topics.ppt
Junaidrazaq
Ch03
Ch03
Padrong14
Ch14 wrd12e instructor_final
Ch14 wrd12e instructor_final
fsuttonnnu
WRD-27e-SE-PPT-Ch16.pptx
WRD-27e-SE-PPT-Ch16.pptx
christopherchonjo
Ch02 wrd12e instructor_final
Ch02 wrd12e instructor_final
fsuttonnnu
Chapter 2 Financial Accounting
Chapter 2 Financial Accounting
fsuttonnnu
Lecture1 overview (1)
Lecture1 overview (1)
Zheyi Ren
Small Business Management Chapter 10 Busby PowerPoint
Small Business Management Chapter 10 Busby PowerPoint
LeahBusby1
Small Business Management Chapter 10 PowerPoint
Small Business Management Chapter 10 PowerPoint
LeahBusby1
Financial Accounting.
Financial Accounting.
James Odumbe
Ratio Analysis of Apex Adelchi Footwear Ltd
Ratio Analysis of Apex Adelchi Footwear Ltd
Moin Sarker
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Jasonne
Acc102 chap13 publisher_power_point
Acc102 chap13 publisher_power_point
Beulah Heights University
Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...
KrisWu123
Chapter05
Chapter05
starickam
Bab 4 Income Statement and Related Information
Bab 4 Income Statement and Related Information
msahuleka
cash flow and contemporary issued
cash flow and contemporary issued
Nisal Desaman
Keiso15 chapter 4 review
Keiso15 chapter 4 review
Sungah Kimelika
Power pointchapter2
Power pointchapter2
phireflies
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
JemalSeid25
Financial statement
Financial statement
HARSHIT GARG
Eng Economics-Report-Safeen Yaseen.pdf
Eng Economics-Report-Safeen Yaseen.pdf
Safeen Yaseen Ja'far
Chapter10Statement of Cash FlowsConsidering the impo.docx
Chapter10Statement of Cash FlowsConsidering the impo.docx
mccormicknadine86
Chapter Six part 4.pdf
Chapter Six part 4.pdf
TonmoyPartho2
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
benjaminjames21681
NSU EMB 501 Accounting Ch17
NSU EMB 501 Accounting Ch17
Nazmul Hasan Mahmud
Chapter02
Chapter02
starickam
Financial Accounting - 1133.pdf
Financial Accounting - 1133.pdf
kaveeshasathsarani3
hitt13epptch08-200309154230 (1).pptx
hitt13epptch08-200309154230 (1).pptx
AbdiqadirOsman
Chapter 1.pptx
Chapter 1.pptx
AbdiqadirOsman
Más contenido relacionado
Similar a 1606899847-chp-2.ppt
Small Business Management Chapter 10 PowerPoint
Small Business Management Chapter 10 PowerPoint
LeahBusby1
Financial Accounting.
Financial Accounting.
James Odumbe
Ratio Analysis of Apex Adelchi Footwear Ltd
Ratio Analysis of Apex Adelchi Footwear Ltd
Moin Sarker
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Jasonne
Acc102 chap13 publisher_power_point
Acc102 chap13 publisher_power_point
Beulah Heights University
Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...
KrisWu123
Chapter05
Chapter05
starickam
Bab 4 Income Statement and Related Information
Bab 4 Income Statement and Related Information
msahuleka
cash flow and contemporary issued
cash flow and contemporary issued
Nisal Desaman
Keiso15 chapter 4 review
Keiso15 chapter 4 review
Sungah Kimelika
Power pointchapter2
Power pointchapter2
phireflies
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
JemalSeid25
Financial statement
Financial statement
HARSHIT GARG
Eng Economics-Report-Safeen Yaseen.pdf
Eng Economics-Report-Safeen Yaseen.pdf
Safeen Yaseen Ja'far
Chapter10Statement of Cash FlowsConsidering the impo.docx
Chapter10Statement of Cash FlowsConsidering the impo.docx
mccormicknadine86
Chapter Six part 4.pdf
Chapter Six part 4.pdf
TonmoyPartho2
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
benjaminjames21681
NSU EMB 501 Accounting Ch17
NSU EMB 501 Accounting Ch17
Nazmul Hasan Mahmud
Chapter02
Chapter02
starickam
Financial Accounting - 1133.pdf
Financial Accounting - 1133.pdf
kaveeshasathsarani3
Similar a 1606899847-chp-2.ppt
(20)
Small Business Management Chapter 10 PowerPoint
Small Business Management Chapter 10 PowerPoint
Financial Accounting.
Financial Accounting.
Ratio Analysis of Apex Adelchi Footwear Ltd
Ratio Analysis of Apex Adelchi Footwear Ltd
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Financial Accounting Tools for Business Decision-Making Canadian 6th Edition ...
Acc102 chap13 publisher_power_point
Acc102 chap13 publisher_power_point
Financial and managerial accounting the basis for business decisions 18th edi...
Financial and managerial accounting the basis for business decisions 18th edi...
Chapter05
Chapter05
Bab 4 Income Statement and Related Information
Bab 4 Income Statement and Related Information
cash flow and contemporary issued
cash flow and contemporary issued
Keiso15 chapter 4 review
Keiso15 chapter 4 review
Power pointchapter2
Power pointchapter2
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
Chapter 14 THE STATEMENT OF CASH FLOWS.ppt
Financial statement
Financial statement
Eng Economics-Report-Safeen Yaseen.pdf
Eng Economics-Report-Safeen Yaseen.pdf
Chapter10Statement of Cash FlowsConsidering the impo.docx
Chapter10Statement of Cash FlowsConsidering the impo.docx
Chapter Six part 4.pdf
Chapter Six part 4.pdf
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
GuideToUseOfWorksheetsGuide To Use of Worksheets following the seq.docx
NSU EMB 501 Accounting Ch17
NSU EMB 501 Accounting Ch17
Chapter02
Chapter02
Financial Accounting - 1133.pdf
Financial Accounting - 1133.pdf
Más de AbdiqadirOsman
hitt13epptch08-200309154230 (1).pptx
hitt13epptch08-200309154230 (1).pptx
AbdiqadirOsman
Chapter 1.pptx
Chapter 1.pptx
AbdiqadirOsman
Marketing mix for project marketing .pptx
Marketing mix for project marketing .pptx
AbdiqadirOsman
hitt13epptch06-200309154102.pptx
hitt13epptch06-200309154102.pptx
AbdiqadirOsman
execution chapter 2-1.ppt
execution chapter 2-1.ppt
AbdiqadirOsman
projectscopemanagement1-140220062122-phpapp01 (1).pdf
projectscopemanagement1-140220062122-phpapp01 (1).pdf
AbdiqadirOsman
AGibson_12e_Ch04_AISE.ppt
AGibson_12e_Ch04_AISE.ppt
AbdiqadirOsman
hitt13epptch04-200309153912.pptx
hitt13epptch04-200309153912.pptx
AbdiqadirOsman
gitman_pmf13_ppt11 GE.ppt
gitman_pmf13_ppt11 GE.ppt
AbdiqadirOsman
hitt13epptch02-200309152234.pdf
hitt13epptch02-200309152234.pdf
AbdiqadirOsman
hitt13epptch03-200309153816 (1).pdf
hitt13epptch03-200309153816 (1).pdf
AbdiqadirOsman
hitt13epptch01-200309151856 (1).pdf
hitt13epptch01-200309151856 (1).pdf
AbdiqadirOsman
Financial market & institution CH3 .pptx
Financial market & institution CH3 .pptx
AbdiqadirOsman
m03mish152006ppwc03-100622012332-phpapp02 (1).pdf
m03mish152006ppwc03-100622012332-phpapp02 (1).pdf
AbdiqadirOsman
mishkinfmi9gepptc01-200314102755 (1).pdf
mishkinfmi9gepptc01-200314102755 (1).pdf
AbdiqadirOsman
Corporate governance Ch2 .pptx
Corporate governance Ch2 .pptx
AbdiqadirOsman
wheelan14ech01-170401054036 (1).pptx
wheelan14ech01-170401054036 (1).pptx
AbdiqadirOsman
1608540010-1606813904-agibson-12e-ch06.ppt
1608540010-1606813904-agibson-12e-ch06.ppt
AbdiqadirOsman
Más de AbdiqadirOsman
(18)
hitt13epptch08-200309154230 (1).pptx
hitt13epptch08-200309154230 (1).pptx
Chapter 1.pptx
Chapter 1.pptx
Marketing mix for project marketing .pptx
Marketing mix for project marketing .pptx
hitt13epptch06-200309154102.pptx
hitt13epptch06-200309154102.pptx
execution chapter 2-1.ppt
execution chapter 2-1.ppt
projectscopemanagement1-140220062122-phpapp01 (1).pdf
projectscopemanagement1-140220062122-phpapp01 (1).pdf
AGibson_12e_Ch04_AISE.ppt
AGibson_12e_Ch04_AISE.ppt
hitt13epptch04-200309153912.pptx
hitt13epptch04-200309153912.pptx
gitman_pmf13_ppt11 GE.ppt
gitman_pmf13_ppt11 GE.ppt
hitt13epptch02-200309152234.pdf
hitt13epptch02-200309152234.pdf
hitt13epptch03-200309153816 (1).pdf
hitt13epptch03-200309153816 (1).pdf
hitt13epptch01-200309151856 (1).pdf
hitt13epptch01-200309151856 (1).pdf
Financial market & institution CH3 .pptx
Financial market & institution CH3 .pptx
m03mish152006ppwc03-100622012332-phpapp02 (1).pdf
m03mish152006ppwc03-100622012332-phpapp02 (1).pdf
mishkinfmi9gepptc01-200314102755 (1).pdf
mishkinfmi9gepptc01-200314102755 (1).pdf
Corporate governance Ch2 .pptx
Corporate governance Ch2 .pptx
wheelan14ech01-170401054036 (1).pptx
wheelan14ech01-170401054036 (1).pptx
1608540010-1606813904-agibson-12e-ch06.ppt
1608540010-1606813904-agibson-12e-ch06.ppt
Último
PSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
Anamaria Contreras
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
Call girls in Goa, +91 9319373153 Escort Service in North Goa
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
Jos Voskuil
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
ashishs7044
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Voces Mineras
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
mbikashkanyari
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
DallasHaselhorst
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Stunning ➥8448380779▻ Call Girls In Hauz Khas Delhi NCR
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
ictsugar
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
ashishs7044
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
Anamaria Contreras
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdf
Shashank Mehta
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
ashishs7044
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
Data Analytics Company - 47Billion Inc.
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
Chandresh Chudasama
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Doge Mining Website
Cyber Security Training in Office Environment
Cyber Security Training in Office Environment
elijahj01012
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
Riya Pathan
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
callgirls2057
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
dollysharma2066
Último
(20)
PSCC - Capability Statement Presentation
PSCC - Capability Statement Presentation
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
Digital Transformation in the PLM domain - distrib.pdf
Digital Transformation in the PLM domain - distrib.pdf
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
8447779800, Low rate Call girls in Tughlakabad Delhi NCR
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
The-Ethical-issues-ghhhhhhhhjof-Byjus.pptx
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Enjoy ➥8448380779▻ Call Girls In Sector 18 Noida Escorts Delhi NCR
Kenya’s Coconut Value Chain by Gatsby Africa
Kenya’s Coconut Value Chain by Gatsby Africa
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
8447779800, Low rate Call girls in Shivaji Enclave Delhi NCR
Traction part 2 - EOS Model JAX Bridges.
Traction part 2 - EOS Model JAX Bridges.
Darshan Hiranandani [News About Next CEO].pdf
Darshan Hiranandani [News About Next CEO].pdf
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
8447779800, Low rate Call girls in New Ashok Nagar Delhi NCR
Corporate Profile 47Billion Information Technology
Corporate Profile 47Billion Information Technology
Guide Complete Set of Residential Architectural Drawings PDF
Guide Complete Set of Residential Architectural Drawings PDF
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Unlocking the Future: Explore Web 3.0 Workshop to Start Earning Today!
Cyber Security Training in Office Environment
Cyber Security Training in Office Environment
Independent Call Girls Andheri Nightlaila 9967584737
Independent Call Girls Andheri Nightlaila 9967584737
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
Call Us 📲8800102216📞 Call Girls In DLF City Gurgaon
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
1606899847-chp-2.ppt
1.
© 2011 Cengage
Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Introduction to Financial Statements and Other Financial Reporting Topics Chapter 2
2.
© 2011 Cengage
Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #2 FORMS OF BUSINESS ENTITIES Sole Proprietorship Partnership Corporation Number of owners 1 2 or more (partners) Numerous (shareholders) Legally separate from owners No No Yes Owners liable for business debts Yes Yes No Profits taxable To the owner To the owners To the corporation as earnings; to the owners when dividends are received Modified form “LLC” limits liability of owner; may increase income tax exposure “Subchapter S” profits are taxed at ownership level only
3.
Income statement
Statement of stockholders’ equity Balance sheet Statement of cash flows Support for the financial statements is provided by notes © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #3 THE FINANCIAL STATEMENTS
4.
Dated for
a specific period Summarizes revenues and expenses Reports net income Excess of revenues over expense Net income increases retained earnings © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #4 INCOME STATEMENT Income Statement For the Year Ended Dec. 31, 2011 Revenue $ 120,000 Expenses (100,000) Net Income $ 20,000
5.
Dated for
a specific period Reconciles beginning and ending balances of the stockholders’ equity accounts Capital Stock Retained Earnings Etc. Links the income statement and the balance sheet © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #5 STATEMENT OF STOCKHOLDERS’ EQUITY Income Statement For Year Ending December 31, 2011 Revenue $ 120,000 Expenses (100,000) Net Income $ 20,000 Statement of Stockholders’ Equity For Year Ending December 31, 2011 Capt. Stk. Ret. Earn. Beginning Balance $40,000 $ 25,000 Issue stock 10,000 Net income 20,000 Dividends (10,000) Ending Balance $50,000 $ 35,000
6.
Shows the financial condition
of an entity as of a particular date Assets: the resources of the business Liabilities: the debts of the business Equity: the owners’ interest in the business The Accounting Equation: © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #6 STATEMENT OF STOCKHOLDERS’ EQUITY Assets = Liabilities + Stockholders’ Equity Assets = Liabilities + Capital Stock + Retained Earnings Balance Sheet Assets $110,000 Liabilities 25,000 Stockholders’ Equity Capital Stock 50,000 Retained Earnings 35,000 Tot Liab. & Equity $110,000 Income Statement Revenue $ 120,000 Expenses (100,000) Net Income $ 20,000 Statement of Stockholders’ Equity Capt. Stk. Ret. Earn. Beginning Balance $40,000 $ 25,000 Issue stock 10,000 Net income 20,000 Dividends (10,000) Ending Balance $50,000 $ 35,000
7.
Covers the
same period as the income statement Three sections Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #7 STATEMENT OF CASH FLOWS
8.
An integral
part of the financial statements Required presentation Summary of significant accounting policies Contingent liabilities Subsequent events relating to conditions that existed at the balance sheet date Disclose and adjustment of the financial statements Subsequent events relating to conditions that did not exist at the balance sheet date Disclosure but no adjustment of the financial statements © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #8 NOTES
9.
1. Recording transactions 2.
Recording adjusting entries 3. Preparing the financial statement © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #9 THE ACCOUNTING CYCLE
10.
Internal or
external event that causes a change in a company’s assets, liabilities, or stockholders’ equity Recorded in a journal (journal entry) Posted to general ledger accounts Double-entry system Debit: left side of an account Credit: right side of an account Debits = Credits © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #10 RECORDING TRANSACTIONS Account Title Debit Credit
11.
ACCOUNTING SYSTEM COMPONENTS Permanent
Temporary Account types Assets Liabilities Equity Revenues, Gains Expenses, Losses Dividends Balances Carry forward to the next fiscal period Closed to retained earnings at year-end Represent the accounting equation Chapte r 2, Slide #11 © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
12.
Required by
the accrual basis of accounting Prepared at the end of the fiscal period Records (recognizes) for the current period Expenses incurred Revenues earned Recorded in the general journal Posted to the general ledger © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #12 ACCOUNTING SYSTEM COMPONENTS
13.
The output
of the accounting system Based on the adjusted general ledger account balances Directly from the general ledger Income statement Balance sheet From analysis of general ledger accounts Statement of cash flows © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #13 PREPARING THE FINANCIAL STATEMENTS
14.
Voluntary private
sector organization (Treadway) Committee of Sponsoring Organizations (COSO) Internal control reports Standard framework for evaluating internal control Need for internal control emphasized by Sarbanes-Oxley Act §404 Management's Report on Internal Control Independent auditor’s opinion on management’s assessment of internal control © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #14 TREADWAY COMMISSION
15.
Audit is
conducted by CPAs The audit report is the formal statement of audit opinion Unqualified opinion Qualified opinion Adverse opinion Disclaimer of opinion © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #15 AUDITOR’S OPINION
16.
The financial
statements present fairly The financial position Results of operations Cash flows In conformity with generally accepted accounting principles For the user: the highest degree of reliability © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #16 UNQUALIFIED OPINION
17.
Except for
the matter to which the exception relates The financial statements present fairly The financial position Results of operations Cash flows In conformity with generally accepted accounting principles For the user: determine the significance of the exception © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #17 QUALIFIED OPINION
18.
The financial
statements do not present fairly The financial position Results of operations Cash flows In conformity with generally accepted accounting principles For the user: reliability of financial statements need to be seriously questioned © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #18 ADVERSE OPINION
19.
The auditor
does not express an opinion Auditor Has not preformed an audit sufficient in scope to form an opinion or Is not independent For the user: auditor’s statement conveys no indication of financial statement reliability © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #19 DISCLAIMER OF OPINION
20.
Paragraph #1:
Financial statements have been audited Financial statements are responsibility of management Auditors have responsibility to express or disclaim an opinion © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #20 UNQUALIFIED AUDITOR’S REPORT
21.
Paragraph #2
Audit conducted in accordance with the standards of the (U.S.) Public Accounting Oversight Board Auditor is required to plan and perform the audit Obtain reasonable assurance Financial statements are free from material misstatement Audit provides a reasonable basis for opinion Examining evidence Assessing accounting principles and estimates © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #21 UNQUALIFIED AUDITOR’S REPORT (CONT’D)
22.
Paragraph #3
Opinion: in conformity with generally accepted (U.S.) accounting principles Also: for public companies, reference to the audit of internal control effectiveness In accordance with the (U.S.) Public Accounting Oversight Board Based on criteria established by COSO © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #22 UNQUALIFIED AUDITOR’S REPORT (CONT’D)
23.
Required by
Sarbanes-Oxley May be combined with audit opinion report Paragraphs 1. Scope 2. Responsibility and procedures 3. Opinion 4. Reference to financial statement audit © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #23 AUDITOR’S REPORT ON INTERNAL CONTROL
24.
Review Less
in scope than an audit An opinion is not expressed Provides negative assurance “Not aware of any material misstatements or required modifications” Compilation Presents only financial information provided by management No opinion or any other assurance is given © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #24 OTHER TYPES OF ENGAGEMENTS
25.
Management is
responsible for The preparation of the financial statements The integrity of the financial statements Management’s Statement of Responsibility May be included in the annual report © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #25 MANAGEMENT’S RESPONSIBILITY
26.
Required filings 10-K:
annual filing (audited) Includes financial statements plus Information on the business entity Market information Management discussion and analysis Directors, executive officers, and their compensation Related party transactions 10-Q: quarterly filing (unaudited) 8-K: “current report” To report the occurrence of any material events or corporate changes © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #26 THE SEC’S INTEGRATED DISCLOSURE SYSTEM
27.
Proxy Notice
and authorization of shareholder voting rights on corporate actions Content and form governed by the SEC Summary Annual Report Highly condensed financial information Must be accompanied by a proxy containing full financial information Not adequate for financial analysis © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #27 ADDITIONAL REPORTING VENUES
28.
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 does not impact value Body of the financial statements Notes to the financial statements Benefit of making disclosure outweighs the cost © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #28 THE EFFICIENT MARKET HYPOTHESIS
29.
Caring Honesty Accountability Promise keeping Pursuit of
excellence Loyalty Fairness Integrity Respect for others Responsible citizenship © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #29 ETHICS Essential values in interpersonal relationships
30.
1. Determine the
facts 2. Define the ethical issues 3. Identify major principles, rules, and values 4. Specify the alternatives 5. Compare norms, principles, and values with alternatives 6. Assess the consequences 7. Make your decision © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #30 AAA ETHICAL DECISION FRAMEWORK
31.
Enacted under
Sarbanes-Oxley Act Applicable to chief financial officers Disclosure requirements Whether a code of ethics has been adopted If not, why not Code is published in the annual report or on the firm’s web site © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #31 SEC REQUIREMENT: A CODE OF ETHICS
32.
Accounting standards
can vary by country Development is often in response to domestic needs International accounting standards set by IASC (1973 – 2000) IASB (2001 to present) has no enforcement power In the U.S. SEC requires registrants to report in U.S. GAAP FASB is participating in the harmonization project © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #32 HARMONIZATION OF INTERNATIONAL ACCOUNTING STANDARDS
33.
IASB issues
(IFRS) International Financial Reporting Standards. 2002 Norwalk agreement – FASB and IASB commit to high- quality, compatible accounting standards. 2007 agreement between US and European Union to allow companies to drop US GAAP if financials were prepared by IFRS. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #33 HARMONIZATION OF INTERNATIONAL ACCOUNTING STANDARDS
34.
Parent consolidates
with subsidiary Report results of operations separately Sum subsidiary and parent results of operations Legal control vs. effective control Consolidation occurs when parent has effective control over the subsidiary Holds a majority of risks, rewards, and decision-making ability © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #34 CONSOLIDATED FINANCIAL STATEMENTS
35.
Effected through
merger or acquisition Purchase method of accounting Record assets and liabilities acquired at their fair values Excess of purchase price over fair value of net assets acquired is reported as goodwill © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapte r 2, Slide #35 ACCOUNTING FOR BUSINESS COMBINATIONS
Descargar ahora