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ch01 140113191723 Phpapp02
ch01 140113191723 Phpapp02
ch01 140113191723 Phpapp02
F I F T E E N T H
E D I T I O N
Intermediate
ACCOUNTING
Intermediate
Accounting
Accounting
1-1
Prepared
by
Prepared
by
Coby Harmon
Prepared by
Coby Harmon
Harmon
University
of California
Santa Barbara
University
of California,
Santa Coby
Barbara
University of California, Santa Barbara
Westmont
College
Westmont
College
kieso
weygandt
warfield
team for success
PREVIEW OF CHAPTER
Intermediate Accounting
15th Edition
Kieso Weygandt Warfield
1-2
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-3
1.
2.
3.
4.
5.
6.
7.
8.
9.
1-4
LO 1 Identify the major financial statements and other means of financial reporting.
Financial Statements
Additional Information
Financial
Information
Balance Sheet
Presidents letter
Income Statement
Prospectuses
Statement of Cash
Flows
Accounting?
Identifies
and
Measures
and
Communicates
Statement of
Owners or
Stockholders Equity
Note Disclosures
GAAP
News releases
Forecasts
Environmental
impact statements
Etc.
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LO 1 Identify the major financial statements and other means of financial reporting.
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a.
b.
c.
d.
LO 1 Identify the major financial statements and other means of financial reporting.
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-7
1.
2.
3.
4.
5.
6.
7.
8.
9.
1-8
1-9
a.
promotes productivity.
b.
encourages innovation.
c.
d.
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
lenders, and
other creditors
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1-13
Decision-Usefulness
Investors are interested in assessing the companys
1. ability to generate net cash inflows and
2. managements ability to protect and enhance the capital
providers investments.
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-16
1.
2.
3.
4.
5.
6.
7.
8.
9.
Financial Statements
Balance Sheet
Income Statement
Statement of Stockholders Equity
Statement of Cash Flows
Note Disclosure
Generally Accepted
Accounting Principles
(GAAP)
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
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Securities
SecuritiesAct
Actof
of
1933
1933
1-20
Securities
SecuritiesAct
Actof
of
1934
1934
SEC Oversight.
Enforcement Authority.
http://www.sec.gov/
http://www.aicpa.org/
Committee on Accounting
Procedures
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Accounting Principles
Board
1939 to 1959
1959 to 1973
Problem-by-problem approach
failed
Wheat Committee
recommendations adopted in
1973
LO 5
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Smaller Membership.
Greater Autonomy.
Increased Independence.
Broader Representation.
http://www.fasb.org/
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a.
b.
c.
d.
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1-26
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
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APB Opinions.
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1-30
a.
b.
c.
d.
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1-32
LO 6
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LO 6
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1-34
1.
2.
3.
4.
5.
6.
7.
8.
9.
Illustration 1-6
User Groups that
Influence the Formulation
of Accounting Standards
GAAP is as
much a product
of political
action as they
are of careful
logic or
empirical
findings.
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1-36
1-37
1-38
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
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Non-financial measurements.
Forward-looking information.
Soft assets.
Timeliness
Understandability
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LEARNING OBJECTIVES
After studying this chapter, you should be able to:
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1.
2.
3.
4.
5.
6.
7.
8.
9.
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RELEVANT FACTS
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RELEVANT FACTS
1-45
RELEVANT FACTS
1-46
The SEC allows foreign companies that trade shares in U.S. markets to file their
IFRS financial statements without reconciliation to GAAP.
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Illustration IFRS1-1
Global Companies
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1-50
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http://www.iasb.org
Illustration IFRS1-2
International Standard-Setting Structure
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Types of Pronouncements
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LO 10
Hierarchy of IFRS
Companies first look to:
1. International Financial Reporting Standards;
2. International Accounting Standards; and
3. Interpretations originated by the International Financial
Reporting Interpretations Committee (IFRIC) or the former
Standing Interpretations Committee (SIC).
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Any U.S. incorporation of IFRS in GAAP will occur over several years.
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LO 10
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ON THE HORIZON
Financial statements prepared according to IFRS have become an important
standard around the world for communicating financial information to investors
and creditors. The SEC and the FASB are working with their international
counterparts to achieve the goal of a single set of high-quality financial
reporting standards for use around the world. While there are still many bumps
in the road to the establishment of one set of worldwide standards, we are
optimistic that this goal can be achieved, which will be of value to all.
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Copyright
Copyright 2013 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted in
Section 117 of the 1976 United States Copyright Act without the
express written permission of the copyright owner is unlawful.
Request for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. The purchaser
may make back-up copies for his/her own use only and not for
distribution or resale. The Publisher assumes no responsibility for
errors, omissions, or damages, caused by the use of these
programs or from the use of the information contained herein.
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