Financial Accounting by Prof. Brian Bouc

three sets of books

1.Financial Accounting"财务会计"

-standardized reports for external stakeholders

2.Tax Accounting“税务会计”

-IRS rules for computing taxes payable

3.Managerial Accounting “管理会计”

-custom reports for internal decision making

financial reporting requirements

1.Securities and Exchange Commission(SEC)“证券交易委员会” require periodic financial statement filings“要求定期提交财务报表”:

--10-K:annual report (年度报告)

--10-Q:quarterly report（季度报告）

--8-K：current report(material events)（当期事项“重大报告”）

--must be prepared in a accordance with Cenerally Accepted Accounting Principles (GAAP)(公认会计原则)

2.periodic filing requirements create much of the"tension" in financial accounting

--ship goods to a customer in one quarter, collect cash in the next

=when did the sale occur?(销售发生在什么时候)

--buy equipment in one quarter, use it for the next 23 quarters

=when does the expense occur?（费用是什么时候发生的）

who make the rules?

1.Cenerally Accepted Accounting Principles (GAAP) established by:

--U.S. Congress,but they delegate to:

--the SEC“证券交易委员会” ,but they delegate to:

--Financial Accounting Standards Board(FASB)"财务会计标准委员会"

=Emerging Issues Task Force(EITF)"紧急问题工作组"

=American Institute of CPA's(AICPA)”美国会计师协会“

2.International Financial Reporting Standards (IFRS)”国际财务报告准则“ are established by the IASB"国际会计准则事理会" and are required in over 100 countries

--US GAAP"美国通用会计准则" is still required for US firms

--for intro accounting topics, there is a high degree of overlap in the two standards

who is responsible for financial reporting?

1.management is responsible for preparing financial statements

--the audit committee the board of directors provides oversight og management's process

--audiors are hired by the board to "express an opinion" about whether the statements are prepared in conformity with GAAP

2.the SEC "美国证券交易委员会"and other regulators take action against the firm if any violations of GAAP or other rules are found

（违反规则，委员会采取行动）

3.information intermediaries (stock analysts”股票分析师“, institutional investors”机构投资者“, the media”媒体“) may expose or flee firms with questionable accounting.

信息中介机构可能会揭露或逃离会计存在问题的公司

what are the required financial statements?

1.Balance Sheet"资产负债表"

--financial position“财务状况” (listing of resources and obligations“债务”) on a specific date

2.Income Statement"收入表"

--results"结果" of operations”经营“ over a period of time using accrual accounting(i.e.,recognition tied to business activities)

"使用权责发生制会计（与商业活动挂钩的认可）"

3.Statement of Cash Flows"现金流量表"

--sources”来源“ and uses”使用“ of cash over a period of time

4.Statement of Stockholders'Equity”股东权益表“

--changes”变动“in stockholders' equity over a period of time