现金收付制和权责发生制ppt课件

1、Team Leader: LaurelTeammates: Judy, Michelle, Lydia, Wendy, Sylvia MichelleLaurelJudySylvia LydiaWendyL/O/G/OKey words and phrasesComponentpart 组成部分Complicationsproblems 复杂的问题Illustrateshow 举例阐明Leasehire for an extend period 租赁Projected salesforecast sales 方案销售量Generateproduce 产生Fraudulentcriminal 欺

2、诈行为Manipulatechange for your own benefit 操控Fictitiousmade up, unreal 虚伪的Instancecase, event 实例Receiptproof of payment 收据Invoiceproof of credit transaction发票，销售清单Accounts receivable/debtors-credit customers who owe you money for inventory sales 应收账款Accounts payable/creditorscredit suppliers who you o

3、we money to for inventory purchases 应付账款Accrual/accrued expensean expense that has been incurred but the actual amount is not yet known eg. telephone bill 预提费用Deductsubtract, take away 扣除Capital Allowancefull cost of purchasing a fixed asset can be treated as a expense for tax purpose only 资产资产的税务津贴

4、的税务津贴Validacceptable 有效的有效的Exceedbecome greater 超出超出Give/given/giving rise to-causing引起，导引起，导致致Criteriarule, condition, constraint 规范规范 ALL listed companies in china and elsewhere are required to use accrual accounting. The main implications of this are that reported net income and net cash flow for

5、 a period will usually be different. Also, accounting profit and taxable profit will usually not be the same.Distinguish between accrual and cash accounting.Why does accrual accounting usually lead to different figures for accounting profit and taxable profit?1.2.A basic assumption that revenues are

6、 recognized when earned and expenses are recognized when incurred without regard to when cash is received or paid.A system of accounting in which revenues and expenses are recorded as they are received and paid. Accrual accountingCash accounting Cash received from customers 100,000Cash paid to suppl

7、iers of inventory 70,000Beginning accounts receivable 8,000Ending accounts receivable 10,000Beginning accounts payable 6,000Ending accounts payable 7,000Unpaid bill at the year end 5,000Depreciation charge for the year 3,000Expenses paid in cash 20,000(including payments in advance of 2,000)ignore i

8、nventoryYou are provided with the following information for the financial year of a business.Revenue statements Cash basis. Sales 100,000 Cost of sales (70,000) Expenses (20,000) Profit 10,000 Accrual basis. Sales 102,000 Cost of sales (71,000) Expenses (26,000) Profit 5,000QuestionDistinguish betwe

9、en accrual and cash accounting.Why does accrual accounting usually lead to different figures for accounting profit and taxable profit?1.2. Because tax law and accounting rules are different. A very good example is tangible fixed assets. When a business purchases a fixed asset the accounting treatmen

10、t is to write off the cost over its estimated useful life as depreciation. However, for tax purposes, the full cost can be deducted in the year of purchase; this is called a Capital Allowance.10, 000 1, 000 each yearAccounting profit:A profit of 25, 000 for that yearTaxable profit:16，000(25,000+1,00

11、0-10,000)Tax rate: 40%Tax expense:6,400Value Added Tax Consumption-type VAT Income-tax Production-based value-added tax Trade loading In the 1980s RJR Nabiscothe second largest provider of tobacco and snack food products in the USA , routinely sent more inventory to customers than they had actually

12、ordered. Once sent it would be recognized as revenue which would inflate profit. The return of un-ordered goods would be recorded in the following period.Whats wrong with RJR.?Whats wrong with RJR.?Revenue RecognitionCriteria 2Criteria 1Case Regina Co. This company which made and sold vacuum cleaner

13、 went a lot furture than RJR.Because of a design fault 400,000 of the units they had sold were returned. These returns were not recorded. They also started to record sales when goods were ordered rather than when they were sent. PerformanceTo ensure that projected sales figures were achieved for the

14、 year ended June 30 1988 the company generated $5.4 million of fictitious sales invoices for the last three business days of the year.QuestionCash VS. accrual accounting4. The cash basis and accrual basis can give quite different pictures of a firms operating performance.It will depend on the busine

15、ss in question .How big will the difference be after all?StarCash cowProblem childDogThe Boston MatrixMarket GrowthHighLowMarket share HighLowLet us guess ConclusionsStar-In a growing company, cash needs would exceed net income because of the need to increase working capital and the fixed assets Dif

16、ferent picturesSimilar picturesCash cow -In a firm that has been in existence for quite some time and that has reached a steady state, the levels of receivables, inventory, and payables are often fairly constant.QuestionCould either of the above cases have happened under a system of cash accounting?

17、5.Trade loading In the 1980s RJR Nabiscothe second largest provider of tobacco and snack food products in the USA , routinely sent more inventory to customers than they had actually ordered. Once sent it would be recognized as revenue which would inflate profit. The return of un-ordered goods would

18、be recorded in the following period.Case Regina Co. This company which made and sold vacuum cleaner went a lot furture than RJR.Because of a design fault 400,000 of the units they had sold were returned. These returns were not recorded. They also started to record sales when goods were ordered rather than when they were sent. If all payments and