Chapter3 Accounting Equation and Illustration

1 Liabilities from past transactions or events. 2 Liability as a present obligation of the enterprise. 3 The settlement of liabilities is expected to lead to an outflow of economic benefits.
性质不同。负债是在经营或其他事项中发生的债 务，是债权人对其债务的权利；所有者权益是对 投入的资本及其运用所产生的盈余（或亏损）的 权利。
Differences in Owners' equity and Liabilities
3 Different repayments. Corporate Liabilities usually have agreed repayment date; Owner's equity does not exist agreed repayment date, which is an enterprise fund long-term used can only be repaid until liquidation.
1 Liabilities from past transactions or events.
负债是由过去的交易或事项形成的。 负债应当由企业过去的交易或者事项所形成。换 句话说。只有过去的交易或者事项才形成负债。 企业将在未来发生的承诺、签订的合同等交易或 者事项，不形成负债。
2 Liability as a present obligation of the enterprise
Definition of Liabilities
Liabilities as present obligations of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. Characters:
负债是企业承担的现时义务。 负债必须是企业承担的现时义务。现时义务是指 企业在现行条件下已承担的义务：未来发生的交 易或者事项形成的义务，不属于现时义务，不应 当确认为负债。
3 The settlement of liabilities is expected to lead to an outflow of economic benefits. 负债的清偿预期会导致经济利益流出企业。 预期会导致经济利益流出企业也是负债的一个本 质特征只有企业在履行义务时会导致经济利益流 出企业的，才符合负债的定义，如果不会导致企 业经济利益流出的，就不符合负债的定义。在履 行现时义务清偿负债时，导致经济利益流出企业 的形式多种多样，例如用现金偿还或以实物资产 形式偿还；以提供劳务形式偿还；部分转移资产、 部分提供劳务形式偿还等。
Definition of Assets
Assets as resources controlled by the enterprise as a result of past events and from which economic benefits are expected to flow to the enterprise. Characters：
对象不同。负债是对债权人负担的经济责任；所 有者权益是对投资人负担的经济责任。
Differences in Owners' equity and Liabilities
2 Different characters. Liabilities are debt incurred in the operations or other matters, which is the right of creditors to its debt; owner's equity is the right of earnings (or losses) on invested capital arising from its use.
Differences in Owners' equity and Liabilities
1 Different objects. Liabilities shoulder the economic responsibility for creditors.Owner's equity shoulders the economic responsibility for investors.
Long-term assets
are those which should be realized or consumed after more than 12 months or longer than an accounting cycle such as prepaid expenses, land, buildings, equipment and so on.
实质重于形式以融资租赁的形式租入的固定资产，虽然从法律
形式来讲企业并不拥有其所有权，但是由于租赁合同中规定的租赁期 相当长，接近于该资产的使用寿命；租赁期结束时承租企业有优先购 买的选择权，在租赁期内承租企业有权支配资产并从中受益。所以， 从实质上看，企业控制了该项资产的使用权及受益权。所以在算会计 核算上，将融资租赁的固定资产视为企业的资产。
Liabilities
Current liabilities
are those amounts which are repayable within a period of less than 12 months or within an accounting cycle such as notes payable, accounts payable and so on .
Classification
Assets
Current assets
are those amounts which are realized or consumed within a period of less than 12 months or within an accounting cycle such as cash, inventory, notes receivable, accounts receviable and so on .
For Example
Goods or Services bought on credit
Borrowed Money
Liabilities
Salaries and wages owed to employees
Taxes owed to the Government
Classification
2 Assets are the economic resources owned or controlled by a business.
资产必须由企业拥有或控制。 由企业拥有或者控制，是指企业享有某项资产的所有权， 或者虽然不享有某项资产的所有权，但该资源能被企业所 控制。例如，融资租入的固定资产，按照实质重于形式的 要求，也应将其作为企业资产予以确认。
3 Assets can benefit future operations for the business.
资产预期会给企业带来经济利益。 预期会给企业带来经济利益，是指直接或间接导致现金和 现金等价物流入企业的潜力。资产必须具有交换价值和使 用价值。没有交换价值和使用价值、不能给企业带来未来 经济利益的资源不能确认为企业的资产。 例如，待处理财产损失或已失效、已毁损的存货，他们已 经不能给企业带来未来经济利益，就不应该再作为资产出 现在资产负债表中。
Chapter 3
Accounting Equation and illustration
Lecturer : Grade 11 Accounting CHEN Ling
Contents
1
2 Accounting Equation Assets
3
4 5
Liabilities
Owner’s Equity The Expand Accounting Equation
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Long-term liabilities
are those which should be repaid after more than 12 months or longer than an accounting cycle such as bonds payable, mortgages payable and so on.
6
Illustrative Transaction
Accounting Equation
Economic resources ↙ ↘ Owner Creditor ↘ ↙ Equities ↓↓(Accounting Equation) Assets Economic resources =Equities ↑ (Liabilities) ↖ ↓↓ Economic resources =Creditors’ equity + Owner’s equity ↓↓ Assets=Liabilities + Owner’s equity
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Definition of Owner’s Equity
Owner’s equity refers to the claims by the owner on the net assets of the business such as paidup capital (or equity) and retained earnings and so on. Owner’s equity=Assets - Liabilities