国际会计课件IA02

Debit
and Credit Rules …
Increases owner’s equity.
The price for goods sold and services rendered during a given accounting period. The costs of goods and services used up in the process of earning revenue.
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2.1.Accounting Elements

Liabilities: a liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
Decreases owner’s equity.
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Debit
Expenses decrease owner’s equity.
EXPENSES
and Credit Rules …
EQUITIES Debit Credit for for Decrease Increase
Revenues increase owner’s equity.
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2.2 Inventory

Definition Modification Comparison Measurement Valuation Disclosure
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2.2 Inventory


IAS 2 deals with most inventories. As under many accounting systems, inventories should be valued at the lower of cost and net realizable value. Cost can be measured using FIFO or weighted average.
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2.1 Accounting Elements



Using the accounting equation:Business transactions always affect at least two elements in the accounting equation. Equation I: ASSETS = LIABILITIES + CAPITAL/OWNER’S EQUITY After a transaction is recorded, the accounting equation must be in balance.
Chapter 2
International Financial Reporting Standards
YanLin Jiang
Accounting Department
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2
Objectives



2.1Accounting Elements 2.2 Inventory 2.3Property,Plant&Equipment 2.4Income 2.5Income Tax
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2.2 Inventory


Assets(except biological assets) should initially be measured at their cost. Subsequently, they can continue to be measured at cost(subject to depreciation and impairment). However, they can instead be held at current fair value.
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2.2 Inventory


Biological assets (IAS41 Agriculture)are measured initially and subsequently at fair value less expected costs to sell, which amounts to a net selling price. At the point of harvest, the fair value becomes the cost for inventory accounting.

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Exercises


The profit earned by a business in 20X7 was $72,500. The proprietor injected new capital of $8,000 during the year and withdrew goods for his private use which had cost $2,200. If net assets at the beginning of 20X7 were $101,700, what were the closing net assets? A $35,000 B $39,400 C $168,400 D $180,000
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T-account and debit & credit

Using of an accounts

Increases are recorded on Left Right or or one side of the T-account, Debit Credபைடு நூலகம்t and decreases are recorded Side Side on the other side. The balance is the difference between the debit and credit entries in the account.
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2.1 Accounting Elements

Capital or equity: is the residual interest in the assets of the entity after deducting all its liabilities. The amounts invested in a business by the owner are amounts that the business owes to the owner. This is a special kind of liability, called capital. Share capital is also known as equity.
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2.1Accounting Elements



Equation II. ASSETS =LIABILITIES+CAPITAL/OE+NET PROFIT =LIABILITIES+CAPITAL/OE+(INCOMEEXPENSES) ASSETS+EXPENSES=LIABILITES+CAPITAL /OE+INCOME
difference between the debit and credit entries in the account.
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Debit
and Credit Rules …
Debits and credits affect accounts as follows:
A = L + OE
ASSETS
Debit Credit for for Increase Decrease
LIABILITIES
Debit Credit for for Decrease Increase
EQUITIES
Debit Credit for for Decrease Increase
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Debit
and Credit Rules …
Title of Account
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Example
Receipts are on the debit side.
5/1 5/25 5/29 5/31 Bal.
Cash 8,000 5/2 2,500 Payments 75 5/8 2,000 are on the credit 750 5/28 150 side. 5/31 50 4,125 The balance is the
REVENUES
Debit Credit for for Increase Decrease
Debit Credit for for Decrease Increase
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Debit
An owner’s withdrawals decrease owner’s equity.
and Credit Rules …
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2.1Accounting Elements

Assets、Liabilities、 Capital or equity、

Income 、Expenses
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2.1Accounting Elements

Assets: an asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.
Debit balances
A = L + OE =
Credit balances
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In the double-entry accounting system, every transaction is recorded by equal dollar amounts of debits and credits.
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2.1 Accounting Elements

Income is increases in economic
benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increase in equity, other than those relating to contributions from equity participants.
EQUITIES Debit Credit for for Decrease Increase
An owner’s investments increase owner’s equity.
JILL JONES, DRAWING Debit Credit for for Increase Decrease
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2.1Accounting Elements

Expenses: are decreases in economic
benefits during the accounting period in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.
JILL JONES, CAPITAL Debit Credit for for Decrease Increase
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Exercises
Which one of the following accounting equation can be rewritten as? A Assets + profit — drawings — liabilities = closing capital B Assets — liabilities — drawings =opening capital + profit C Assets — liabilities — opening capital + drawings = profit D Assets - profit - drawings = closing capital — liabilities