国际会计学第六版chapter_6-PPT精选文档
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《国际会计学第六》PPT课件_OK
• To accomplish this, revenues are expressed in end of period purchasing power by multiplying $1,50 0 by 121/110 (110 is used as an expedient to reflect the fact that revenues are received uniformly ov er the year).
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• Revenues would be $1,500 received uniforml y over the period, expenses would be $1,000, and net income would be $500.
• Net income of $500 represents the amount t hat could be withdrawn from the firm and le ave the owners with their original investment intact.
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Why are Financial Statement Potentially Misle ading
During Periods of Changing Prices?
• During periods of inflation, revenues are based on the general purchasing power of the current period.
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• Deducting expenses based on historical purchasing power from revenues that expressed i n currency of current purchasing power yields a nonsensical index of performance.
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• Revenues would be $1,500 received uniforml y over the period, expenses would be $1,000, and net income would be $500.
• Net income of $500 represents the amount t hat could be withdrawn from the firm and le ave the owners with their original investment intact.
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Why are Financial Statement Potentially Misle ading
During Periods of Changing Prices?
• During periods of inflation, revenues are based on the general purchasing power of the current period.
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• Deducting expenses based on historical purchasing power from revenues that expressed i n currency of current purchasing power yields a nonsensical index of performance.
国际会计学第六版
Banks
Conservative earnings for creditor protection. Less extensive disclosures.
Development (contin)
Legal system
Code law
Laws are all-embracing. Accounting tends to be prescriptive and
Example: the Netherlands
Independent discipline approach
Accounting derived from business practices, judgment, and trial-and-error.
Examples: U.K. and U.S.
sector professional organizations.
Development (contin)
Taxation
Must companies record revenues and expenses in their accounts to claim them for tax purposes?
Development (contin)
Level of economic development
Affects the types of transactions and which ones are most prevalent in the economy which, in turn,
Accounting values (Gray)
Professionalism vs. statutory control Uniformity vs. flexibility Conservatism vs. optimism Secrecy vs. transparency
Conservative earnings for creditor protection. Less extensive disclosures.
Development (contin)
Legal system
Code law
Laws are all-embracing. Accounting tends to be prescriptive and
Example: the Netherlands
Independent discipline approach
Accounting derived from business practices, judgment, and trial-and-error.
Examples: U.K. and U.S.
sector professional organizations.
Development (contin)
Taxation
Must companies record revenues and expenses in their accounts to claim them for tax purposes?
Development (contin)
Level of economic development
Affects the types of transactions and which ones are most prevalent in the economy which, in turn,
Accounting values (Gray)
Professionalism vs. statutory control Uniformity vs. flexibility Conservatism vs. optimism Secrecy vs. transparency
国际会计学第六版chapter课件
Have a basic understanding of the following selected corporate financialdisclosure practices: (a) disclosures of forward-looking information, (b) segment disclosures, (c) social responsibility reporting, (d) special disclosures for nondomestic financial statement users, and (e) corporate governance disclosures.
3
Development of Disclosure
Voluntary disclosure
Voluntary disclosures are increasing as investors demand more detailed and timely information.
But managers’ incentives for disclosure aren’t always aligned with those of investors.
International Accounti. Meek
Chapter 5: Reporting and Disclosure
1
Learning Objectives
Distinguish voluntary and mandatory disclosure and the applicable regulatory measures.
Disclosure regulations and third party certification can improve the functioning of capital markets.
3
Development of Disclosure
Voluntary disclosure
Voluntary disclosures are increasing as investors demand more detailed and timely information.
But managers’ incentives for disclosure aren’t always aligned with those of investors.
International Accounti. Meek
Chapter 5: Reporting and Disclosure
1
Learning Objectives
Distinguish voluntary and mandatory disclosure and the applicable regulatory measures.
Disclosure regulations and third party certification can improve the functioning of capital markets.
国际会计学第六版chapter_6 共42页
Facilitates reporting domestic accounts to foreign audiences-of-interest.
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e
7
Accounting for Spot Transactions
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e
7
Accounting for Spot Transactions
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
国际会计学第六版chapter1-
programs
Choi/Meek, 6/e
13
Contributing Factors (contin)
Global competition
Competitive benchmarking necessitates international comparisons.
Choi/Meek, 6/e
Choi/Meek, 6/e
5
What Does International Accounting Diversity Entail?
Measurement principles Financial disclosure (corporate transparency) Auditing practices
Dutch enhance income measurement.
Choi/Meek, 6/e
7
French use accounting for governmental planning and control.
Double entry assists the British in managing and controlling commercial interests in the colonies.
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 1: Introduction
Choi/Meek, 6/e
1
Learning Objectives
How is international accounting distinct from domestic accounting?
Choi/Meek, 6/e
13
Contributing Factors (contin)
Global competition
Competitive benchmarking necessitates international comparisons.
Choi/Meek, 6/e
Choi/Meek, 6/e
5
What Does International Accounting Diversity Entail?
Measurement principles Financial disclosure (corporate transparency) Auditing practices
Dutch enhance income measurement.
Choi/Meek, 6/e
7
French use accounting for governmental planning and control.
Double entry assists the British in managing and controlling commercial interests in the colonies.
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 1: Introduction
Choi/Meek, 6/e
1
Learning Objectives
How is international accounting distinct from domestic accounting?
国际会计学第六版cha(1)
Dual financial reporting is becoming more common, particularly where duality is sanctioned.
Development (contin)
Level of economic development
Affects the types of transactions and which ones are most prevalent in the economy which, in turn,
Are financial accounting and taxation the same?
Or are they different?
Political and economic ties
Accounting ideas and technologies are transferred through conquest, commerce, and other forces.
Have a basic working knowledge of accounting classifications and how they compare with one another.
Explain the difference between the “fair presentation〞 and “legal compliance〞 orientations of accounting and identify nations in which each is prevalenapproach
Accounting derived from microeconomics.
▪ Maintaining physical capital ▪ Separation of capital and income ▪ Replacement costs
Development (contin)
Level of economic development
Affects the types of transactions and which ones are most prevalent in the economy which, in turn,
Are financial accounting and taxation the same?
Or are they different?
Political and economic ties
Accounting ideas and technologies are transferred through conquest, commerce, and other forces.
Have a basic working knowledge of accounting classifications and how they compare with one another.
Explain the difference between the “fair presentation〞 and “legal compliance〞 orientations of accounting and identify nations in which each is prevalenapproach
Accounting derived from microeconomics.
▪ Maintaining physical capital ▪ Separation of capital and income ▪ Replacement costs
国际会计学第六版chapter_6-42页文档资料
Is similar to a translation gain or loss as it results from a restatement process.
Choi/Meek, 6/e
16
Choi/Meek, 6/e
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Types of Translation Methods
Single rate method: applies a single exchange rate, the current rate, to all foreign currency assets and liabilities.
Choi/Meek, 6/e
2
How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
Choi/Meek, 6/e
16
Choi/Meek, 6/e
17
Types of Translation Methods
Single rate method: applies a single exchange rate, the current rate, to all foreign currency assets and liabilities.
Choi/Meek, 6/e
2
How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Preserves the original cost equivalent of a foreign currency item in the reporting currency.
Use of historical rates do not give rise to
translation gains or losses, which are
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
国际会计学第六版_cha
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AMF – Financial Markets Authority Supervises securities markets
OEC – Institute of Public Accountants Represents the accounting profession Members prepare financial statements, and provide tax, information systems, and management advisory services
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France
Overview
“The Plan” – national uniform chart of accounts (national accounting code)
Objectives and principles of financial reporting Definitions of elements Recognition and valuation rules Standardized chart of accounts Model financial statements
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CNCC – National Institute of Statutory Auditors
Members audit and give an opinion on financial statements
Must report criminal acts to the High Council of External Auditors
Develops recommendations for consolidated financial statements
国际会计学第六版chapter_3-精选文档28页
11
CNCC – National Institute of Statutory Auditors
Members audit and give an opinion on financial statements
Must report criminal acts to the High Council of External Auditors
operations – functional currency concept
6
Assets valued at historical cost or fair value
Research costs – expensed; development costs – capitalized
Substantial overlap in OEC and CNCC membership
Statutory auditors not allowed to provide accounting services to the same client
AMF oversees audits of listed companies, but
Describe the key similarities and differences between the accounting systems of these five countries.
2
Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
CNCC – National Institute of Statutory Auditors
Members audit and give an opinion on financial statements
Must report criminal acts to the High Council of External Auditors
operations – functional currency concept
6
Assets valued at historical cost or fair value
Research costs – expensed; development costs – capitalized
Substantial overlap in OEC and CNCC membership
Statutory auditors not allowed to provide accounting services to the same client
AMF oversees audits of listed companies, but
Describe the key similarities and differences between the accounting systems of these five countries.
2
Identify the use of International Financial Reporting Standards at the levels of the individual company and the consolidated financial statements in these five countries.
国际会计学第六版chapter1-
What does international accounting diversity entail?
Does international accounting have a history?
What factors are contributing to the importance of international accounting as a field of study?
Choi/Meek, 6/e
6
Contributing Factors
Accounting’s international heritage
Double-entry originates in the Italian city states.
Bookkeeping spreads to Germany and assists the spread of capitalism.
Accounting serves people and institutions whose decisions are international in scope.
Accounting diversity creates a demand for harmonization.
Choi/Meek, 6/e
Accounting plays a major role in the U.S. industrial revolution.
Choi/Meek, 6/e
8
Contributing Factors (contin)
Paradox of international accounting
In many countries, accounting remains a nationalistic affair.
Does international accounting have a history?
What factors are contributing to the importance of international accounting as a field of study?
Choi/Meek, 6/e
6
Contributing Factors
Accounting’s international heritage
Double-entry originates in the Italian city states.
Bookkeeping spreads to Germany and assists the spread of capitalism.
Accounting serves people and institutions whose decisions are international in scope.
Accounting diversity creates a demand for harmonization.
Choi/Meek, 6/e
Accounting plays a major role in the U.S. industrial revolution.
Choi/Meek, 6/e
8
Contributing Factors (contin)
Paradox of international accounting
In many countries, accounting remains a nationalistic affair.
国际会计学第六版chapter_6
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 6: Foreign Currency Translation
Choi/Meek, 6/e 1
国际会计三大难题
符号
• 问号 question 合并财务报表 • 手势 hand • Consolidate 金钱 money • d Financial 喻意金人 • 3D小人 • Statements 艺术数字
Choi/Meek, 6/e
6
Facilitates the recording of foreign currency transactions; i.e., foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reporting currency. Facilitates reporting domestic accounts to foreign audiences-of-interest.
Why do Firms Translate?（P127）
Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company’s total operations both domestic and foreign. Facilitates the measurement of a firm’s exposure to foreign exchange risk.
Chapter 6: Foreign Currency Translation
Choi/Meek, 6/e 1
国际会计三大难题
符号
• 问号 question 合并财务报表 • 手势 hand • Consolidate 金钱 money • d Financial 喻意金人 • 3D小人 • Statements 艺术数字
Choi/Meek, 6/e
6
Facilitates the recording of foreign currency transactions; i.e., foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reporting currency. Facilitates reporting domestic accounts to foreign audiences-of-interest.
Why do Firms Translate?（P127）
Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company’s total operations both domestic and foreign. Facilitates the measurement of a firm’s exposure to foreign exchange risk.
国际会计学第六版chapter_6 Foreign Currency Translation
Multiple rate methods: Use some combination or current and historical rates to translate foreign currency balances.
Choi/Meek, 6/e
18
Choi/Meek, 6/e
19
Current-Noncurrent Method
Depreciation and amortization charges at
historical rates in effect when related
assets are acquired.
Gain or loss on an unsettled transaction: arises whenever consolidated financial statements are prepared before settlement and the current rate has changed since the transaction date.
At each balance sheet date, recorded balances denominated in a currency other than the functional currency of the reporting entity is adjusted to reflect the current exchange rate.
Choi/Meek, 6/e
2
How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Choi/Meek, 6/e
18
Choi/Meek, 6/e
19
Current-Noncurrent Method
Depreciation and amortization charges at
historical rates in effect when related
assets are acquired.
Gain or loss on an unsettled transaction: arises whenever consolidated financial statements are prepared before settlement and the current rate has changed since the transaction date.
At each balance sheet date, recorded balances denominated in a currency other than the functional currency of the reporting entity is adjusted to reflect the current exchange rate.
Choi/Meek, 6/e
2
How does a translation gain or loss differ from a transactions gain or loss?
Is there more than one way of translating financial statements from one currency to another? If so, what are they?
国际会计学第六版chapter_6Foreign Currency Translation教学讲义
What is the difference between a spot, forward, and swap transaction?
What exchange rates are used in the currency translation process and what are their financial statement effects?
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
Facilitates repoeign audiences-of-interest.
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e
7
What exchange rates are used in the currency translation process and what are their financial statement effects?
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
Facilitates repoeign audiences-of-interest.
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e
7
国际会计学第六版chapter_1-24页精品文档
Choi/Meek, 6/e
16
Choi/Meek, 6/e
17
Contributing Factors (contin)
Reporting issues associated with internationalization of capital markets
How to analyze and interpret foreign accounts? How to report to foreign readers? How to harmonize reporting standards
E.g., the e in p/e valuation multiples.
Internationalization of capital markets
Raising external finance abroad means that financial reports must increasingly travel internationally.
internationally?
Choi/Meek, 6/e
18
Other Chapter Exhibits
Choi/Meek, 6/e
19
Chapter Exhibits (contin)
Choi/Meek, 6/e
20
Chapter Exhibits (contin)
Choi/Meek, 6/e
What does international accounting diversity entail?
Does international accounting have a history?
What factors are contributing to the importance of international accounting as a field of study?
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Choi/Meek, 6/e
Functional currency is the primary currency in which the reporting entity transacts business and generates and spends cash; e.g., dollars in the case of a U.S. reporting entity.
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Choi/Meek, 6/e
7
Accounting for Spot Transactions
Spot transaction: occurs when an enterprise purchases or sells goods for which payment is made in a foreign currency, or when it borrows or lends foreign currency.
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 6: Foreign Currency Translation
Choi/Meek, 6/e 1
Learning Objectives
Why do firms translate from one currency to another? What is the difference between a spot, forward, and swap transaction? What exchange rates are used in the currency translation process and what are their financial statement effects?
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
ቤተ መጻሕፍቲ ባይዱ
Direct quote: the exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency. Indirect quote: the exchange rate specifies the price of a unit of the domestic currency in terms of the foreign currency.
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
6
Choi/Meek, 6/e
Forward transaction: agreements to exchange a specified amount of one currency for another at a future date.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e 3
Why do Firms Translate?
Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company’s total operations both domestic and foreign. Facilitates the measurement of a firm’s exposure to foreign exchange risk.
2
Choi/Meek, 6/e
How does a translation gain or loss differ from a transactions gain or loss? Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Choi/Meek, 6/e
4
Facilitates the recording of foreign currency transactions; i.e., foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reporting currency. Facilitates reporting domestic accounts to foreign audiences-of-interest.
Choi/Meek, 6/e
Functional currency is the primary currency in which the reporting entity transacts business and generates and spends cash; e.g., dollars in the case of a U.S. reporting entity.
Choi/Meek, 6/e
5
Types of Transaction Rates
Spot transactions: the physical exchange of one currency for another in which delivery takes place immediately.
Choi/Meek, 6/e
7
Accounting for Spot Transactions
Spot transaction: occurs when an enterprise purchases or sells goods for which payment is made in a foreign currency, or when it borrows or lends foreign currency.
International Accounting, 6/e Frederick D.S. Choi Gary K. Meek
Chapter 6: Foreign Currency Translation
Choi/Meek, 6/e 1
Learning Objectives
Why do firms translate from one currency to another? What is the difference between a spot, forward, and swap transaction? What exchange rates are used in the currency translation process and what are their financial statement effects?
At the transaction date, each asset, liability, revenue, and expense denominated in a foreign currency is measured and recorded in the functional currency of the reporting entity at the spot exchange rate in effect on that date.
ቤተ መጻሕፍቲ ባይዱ
Direct quote: the exchange rate specifies the number of domestic currency units needed to acquire a unit of foreign currency. Indirect quote: the exchange rate specifies the price of a unit of the domestic currency in terms of the foreign currency.
How does the temporal method of currency translation differ from the current rate method?
What is the relationship between currency translation and inflation?
6
Choi/Meek, 6/e
Forward transaction: agreements to exchange a specified amount of one currency for another at a future date.
Swap transaction: involves the simultaneous spot purchase and forward sale, or spot sale and forward purchase of a currency.
Choi/Meek, 6/e 3
Why do Firms Translate?
Facilitates the preparation of consolidated financial statements that allow readers to see the performance of a multinational company’s total operations both domestic and foreign. Facilitates the measurement of a firm’s exposure to foreign exchange risk.
2
Choi/Meek, 6/e
How does a translation gain or loss differ from a transactions gain or loss? Is there more than one way of translating financial statements from one currency to another? If so, what are they?
Choi/Meek, 6/e
4
Facilitates the recording of foreign currency transactions; i.e., foreign currency sales, purchases, borrowing or lending in the consolidated entity’s reporting currency. Facilitates reporting domestic accounts to foreign audiences-of-interest.