格拉斯哥大学-运营管理教材
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• Reading for today; pages 20-22, 32-47, 57-71, 85, and 90-96.
Financial accounting
• This is where information on an entity’s performance is given in the form of a
often used instead if “Capital”. • Corollaries of this equation exist – they’re
on page 37. We’ll stick to A = C( or E) + L.
Components
• NON CURRENT (FIXED) ASSETS. • Tangibles and Intangibles • Tangibles include • Plant and Machinery • Vehicles • Land and buildings • Fixtures and fittings • One of the above examples doesn’t normally
Inventory
• It’s easy to value some goods, as they are readily identifiable and visible.
• However, other goods are FUNGIBLE; this would apply to most manufacturing raw materials, metals, oil and other fuels, and current asset investments.
• The first one is Inventory. Yet few business people in the UK refer to it as that!
Inventory
• Includes raw materials, finished goods, and work in progress.
depreciate. Which one is it?
Intangibles
• Investments • Licences • Leases • Goodwill • Brands • These can depreciate (amortise) but as an
alternative, they can be subject to IMPAIRMENT REVIEW.
Current assets
• Items which are generally but not always smaller.
• They are almost always shown according to their liquidity, ie how easy are they to turn into cash?
• What might be a NCA to one business might be inventory to another.
• Valuation is a manifestation of PRULeabharlann BaiduENCE. We value at the lower of original purchase price OR net realisable value.
• So the ASSUMPTIONS which undergird accounting, together with the PRINCIPLES and ENHANCING CHARACTERISTICS are fundamental topics for our studies.
Financial Accounting
• Depreciation is a forecast of the wearing out of an asset over time, or of its obsolescence. If we didn’t have it, our accounts wouldn’t be fair.
• IT IS NOT a source of funds for replacement of NCAs. Some commentators think depreciation is a very good thing, as it discourages ambitious managers from making rash expenditures. It therefore helps to solve the AGENCY PROBLEM.
Depreciation
• A business buys a new computer system for £12,000, and intends to write it off at 25% reducing balance. How much depreciation should be provided in Year 4?
Depreciation
• Two main methods; STRAIGHT LINE (which is very easy) and REDUCING BALANCE (which tends to reflect reality for many items). Other methods exist.
Valuation
• Generally, original purchase price less accumulated depreciation less any impairment.
• But what about certain assets – don’t they increase in value?
Financial accounting
• You should all be aware of the principal user groups of accounting information.
• You should also, by now, have realised that accounting information is not numbers – it is about people, and is for people.
How this course proceeds
• It’s fast paced and very intensive. It requires a lot of hard work.
• You need to do a lot of reading.
• Three aspects of accounting and finance; financial accounting, management accounting, financial management.
FINANCIAL INFORMATION MANAGEMENT
Session 2012-13 Lecture 1
Admin information
• Christopher Coles • Christopher.Coles@Glasgow.ac.uk • Room 469, Accounting and Finance • Textbook • Lectures • Tutorials • Exam
• The SFP is a “snapshot” at a point in time.
Financial Accounting
• The ACCOUNTING EQUATION is identified on Page 36.
• It’s Assets = Capital + Liabilities. • For limited companies, the word “Equity” is
• Facility exists (not in some nations, eg USA) to REVALUE certain NCAs upwards.
• Corresponding account; REVALUATION RESERVE.
• A CEO once said “Our best asset is our staff”. Why don’t they appear on the SFP, then? How about football clubs? (See Gowthorpe, page 112).
Financial Accounting
• So what do these characteristics encompass?
• PREDICTIVE QUALITY • TIMELINESS • MATERIALITY • CONSERVATISM
Financial Accounting
• Understandability • Objectivity • Verifiability • Comparability • Consistency • Completeness • Substance over form • But not ACCURACY!
• Statement of Financial Position • Statement of Comprehensive Income • Statement of Changes in Equity • Statement of Cash Flows • Notes to the accounts. • It’s very much post hoc
• Where we have fungible goods, a decision must be taken (and maintained) on how to value.
• Depreciation is no more than a forecast. It will never be accurate. What happens where NCAs are sold for more, or less, than their book value?
Depreciation
Financial Accounting
• What is the main statement?
• It’s the STATEMENT OF FINANCIAL POSITION (see pp35-45).
• You don’t need to be able to draw up an SFP (traditionally known as a BALANCE SHEET) for FIM PGT, but you DO NEED to know the principal components of an SFP and you MUST know the ACCOUNTING EQUATION.
Depreciation
• A business buys a lorry for £50,000. It intends to keep the lorry for four years, after which it expects the lorry’s residual value to be £10,000. How much depreciation should be provided for each year?
• These ASSUMPTIONS comprise GOING CONCERN and ACCRUALS.
• What’s so special about these? And what does “accruals” mean?
• Accounting information must have RELEVANCE and must be a FAITHFUL REPRESENTATION (previously, this was termed “Reliability”).
Financial accounting
• This is where information on an entity’s performance is given in the form of a
often used instead if “Capital”. • Corollaries of this equation exist – they’re
on page 37. We’ll stick to A = C( or E) + L.
Components
• NON CURRENT (FIXED) ASSETS. • Tangibles and Intangibles • Tangibles include • Plant and Machinery • Vehicles • Land and buildings • Fixtures and fittings • One of the above examples doesn’t normally
Inventory
• It’s easy to value some goods, as they are readily identifiable and visible.
• However, other goods are FUNGIBLE; this would apply to most manufacturing raw materials, metals, oil and other fuels, and current asset investments.
• The first one is Inventory. Yet few business people in the UK refer to it as that!
Inventory
• Includes raw materials, finished goods, and work in progress.
depreciate. Which one is it?
Intangibles
• Investments • Licences • Leases • Goodwill • Brands • These can depreciate (amortise) but as an
alternative, they can be subject to IMPAIRMENT REVIEW.
Current assets
• Items which are generally but not always smaller.
• They are almost always shown according to their liquidity, ie how easy are they to turn into cash?
• What might be a NCA to one business might be inventory to another.
• Valuation is a manifestation of PRULeabharlann BaiduENCE. We value at the lower of original purchase price OR net realisable value.
• So the ASSUMPTIONS which undergird accounting, together with the PRINCIPLES and ENHANCING CHARACTERISTICS are fundamental topics for our studies.
Financial Accounting
• Depreciation is a forecast of the wearing out of an asset over time, or of its obsolescence. If we didn’t have it, our accounts wouldn’t be fair.
• IT IS NOT a source of funds for replacement of NCAs. Some commentators think depreciation is a very good thing, as it discourages ambitious managers from making rash expenditures. It therefore helps to solve the AGENCY PROBLEM.
Depreciation
• A business buys a new computer system for £12,000, and intends to write it off at 25% reducing balance. How much depreciation should be provided in Year 4?
Depreciation
• Two main methods; STRAIGHT LINE (which is very easy) and REDUCING BALANCE (which tends to reflect reality for many items). Other methods exist.
Valuation
• Generally, original purchase price less accumulated depreciation less any impairment.
• But what about certain assets – don’t they increase in value?
Financial accounting
• You should all be aware of the principal user groups of accounting information.
• You should also, by now, have realised that accounting information is not numbers – it is about people, and is for people.
How this course proceeds
• It’s fast paced and very intensive. It requires a lot of hard work.
• You need to do a lot of reading.
• Three aspects of accounting and finance; financial accounting, management accounting, financial management.
FINANCIAL INFORMATION MANAGEMENT
Session 2012-13 Lecture 1
Admin information
• Christopher Coles • Christopher.Coles@Glasgow.ac.uk • Room 469, Accounting and Finance • Textbook • Lectures • Tutorials • Exam
• The SFP is a “snapshot” at a point in time.
Financial Accounting
• The ACCOUNTING EQUATION is identified on Page 36.
• It’s Assets = Capital + Liabilities. • For limited companies, the word “Equity” is
• Facility exists (not in some nations, eg USA) to REVALUE certain NCAs upwards.
• Corresponding account; REVALUATION RESERVE.
• A CEO once said “Our best asset is our staff”. Why don’t they appear on the SFP, then? How about football clubs? (See Gowthorpe, page 112).
Financial Accounting
• So what do these characteristics encompass?
• PREDICTIVE QUALITY • TIMELINESS • MATERIALITY • CONSERVATISM
Financial Accounting
• Understandability • Objectivity • Verifiability • Comparability • Consistency • Completeness • Substance over form • But not ACCURACY!
• Statement of Financial Position • Statement of Comprehensive Income • Statement of Changes in Equity • Statement of Cash Flows • Notes to the accounts. • It’s very much post hoc
• Where we have fungible goods, a decision must be taken (and maintained) on how to value.
• Depreciation is no more than a forecast. It will never be accurate. What happens where NCAs are sold for more, or less, than their book value?
Depreciation
Financial Accounting
• What is the main statement?
• It’s the STATEMENT OF FINANCIAL POSITION (see pp35-45).
• You don’t need to be able to draw up an SFP (traditionally known as a BALANCE SHEET) for FIM PGT, but you DO NEED to know the principal components of an SFP and you MUST know the ACCOUNTING EQUATION.
Depreciation
• A business buys a lorry for £50,000. It intends to keep the lorry for four years, after which it expects the lorry’s residual value to be £10,000. How much depreciation should be provided for each year?
• These ASSUMPTIONS comprise GOING CONCERN and ACCRUALS.
• What’s so special about these? And what does “accruals” mean?
• Accounting information must have RELEVANCE and must be a FAITHFUL REPRESENTATION (previously, this was termed “Reliability”).