XXXX中级财务会计英文版第十五章-财务报表FA15thefin课件

FinancialStatementsChapter15IntermediateAccounting12thEditionKieso,Weygandt,andWarfield

FinancialStatementsChapter15Explaintheusesandlimitationsofabalancesheet.Prepareaclassifiedbalancesheetusingthereportandaccountformats.Understandtheusesandlimitationsofanincomestatement.Prepareamultiple-stepincomestatement.Understandtheusefulnessofthestatementofcashflows.Identifythemajorclassificationsofcashflows.Prepareastatementofcashflows.LearningObjectivesExplaintheusesandlimitatioBalanceSheetStatementofCashFlowsUsefulnessClassificationPreparationWorksheetFinancialStatementsUsefulnessLimitationsClassificationpreparationIncomeStatementUsefulnessLimitationsFormspreparationIntroduc-tionTypeofFinancialStatements

PreparingRequirementNotesStatementofchangesinOE定义格式填列BalanceSheetStatementofCas财务报表是对企业财务状况、经营成果和现金流量的结构性表述。IntroductionofFinancialStatements财务报表是对企业财务状况、经营成果和现金流量的结构性1、按反应内容分类动态报表2、按编报期间分类汇总报表个别报表3、按编报主体分类月报季报半年报中期报表静态报表年度报表合并报表TypeofFinancialStatements1、按反应内容分类动态报表2、按编报期间分类汇总报表个别报表Requirement

aboutpreparingFinancialStatements（一）列报基础持续经营（三）重要性和项目列报1、性质或功能不同的项目，一般应单独列报。2、性质或功能类似的项目，其所属类别具有重要性的，应按其类别列报。（二）列报的一致性Requirement

aboutpreparing财务报表中的资产和负债、收入和费用不能相互抵消。下列不属于抵消：1、资产项目按扣除减值准备后的金额列示2、非日常活动产生的损益按净额列示（四）财务报表项目金额间的相互抵消（五）比较信息的列报（六）财务报表表首的列报（七）准则规定单独列报的项目应单独列报。财务报表中的资产和负债、收入和费用不能相互抵消。下列资产负债表是反映企业某一特定日期财务状况的会计报表。TheBalanceSheetEvaluatingthecapitalstructure.Assessriskandfuturecashflows.Analyzethecompany’s:Liquidity,Solvency,andFinancialflexibility.UsefulnessoftheBalanceSheet资产负债表是反映企业某一特定日期财务状况的会计报表。Mostassetsandliabilitiesarereportedathistoricalcost.Useofjudgmentsandestimates.Manyitemsoffinancialvalueareomitted.LimitationsoftheBalanceSheetMostassetsandliabilitiesarThreeGeneralClassificationsAssetsLiabilities,andStockholders’EquityClassificationintheBalanceSheetThreeGeneralClassificationsLiabilitiesEquityAssets=+LiabilitiesEquityAssets=+Cashandotherassetsacompanyexpectstoconvertintocash,sell,orconsumeeitherinoneyearorintheoperatingcycle,whicheverislonger.

CurrentAssetsCashandotherassetsacompanLong-TermInvestmentsNoncurrentAssetsProperty,Plant,andEquipmentIntangiblesOtherAssetsLong-TermInvestmentsNoncurren“Obligationsthatacompanyreasonablyexpectstoliquidateeitherthroughtheuseofcurrentassetsorthecreationofothercurrentliabilities.”CurrentLiabilities“Obligationsthatacompanyre“Obligationsthatacompanydoesnotreasonablyexpecttoliquidatewithinthenormaloperatingcycle.”Long-TermLiabilities“ObligationsthatacompanydoCompaniesusuallydivideequityintothreeparts,(1)CapitalStock,(2)AdditionalPaid-InCapital,and(3)RetainedEarnings.Owners’EquityCompaniesusuallydivideequit(a) InvestmentinpreferredstockBalanceSheetClassificationExerciseAccount(b) Treasurystock(c) Commonstock(d) Cashdividendspayable(e) Accumulateddepreciation(f) Interestpayable(g) Deficit(h) Tradingsecurities(i) Unearnedrevenue(a) Currentasset/Investment(b) Equity(c) Equity(d) Currentliability(e) Contra-asset(f) Currentliability(g) Equity(h) Currentasset(i) CurrentliabilityClassification(a) InvestmentinpreferredstPreparationofthebalancesheet“年初余额”栏：上年末资产负债表的“期末余额”。2.根据总账科目期末余额分析计算填列；“期末余额”栏：1.根据总账科目期末余额直接填列；3.根据明细科目期末余额分析计算填列；4.根据总账科目余额减去其备抵科目余额后的净额填列；5.根据表内项目计算填列。PreparationofthebalancesheEvaluatepastperformance.Predictingfutureperformance.Helpassesstheriskoruncertaintyofachievingfuturecashflows.IncomeStatementUsefulnessoftheIncomeStatement

利润表是反映企业在一定会计期间的经营成果的会计报表。Evaluatepastperformance.IncoCompaniesomititemsthatcannotbemeasuredreliably.Incomeisaffectedbytheaccountingmethodsemployed.Incomemeasurementinvolvesjudgment.LimitationsoftheIncomeStatementCompaniesomititemsthatcannRevenues–Inflowsorotherenhancementsofassetsorsettlementsofitsliabilitiesthatconstitutetheentity’songoingmajororcentraloperations.SalesFeerevenueInterestrevenueDividendrevenueRentrevenueExamplesofRevenueAccountsElementsoftheIncomeStatementRevenues–InflowsorotherenExpenses–Outflowsorotherusing-upofassetsorincurrencesofliabilitiesthatconstitutetheentity’songoingmajororcentraloperations.CostofgoodssoldDepreciationexpenseInterestexpenseRentexpenseSalaryexpenseExamplesofExpenseAccountsExpenses–OutflowsorotheruGains–Increasesinequity(netassets)fromperipheralorincidentaltransactions.Losses-Decreasesinequity(netassets)fromperipheralorincidentaltransactions.Gainsandlossescanresultfromsaleofinvestmentsorplantassets,settlementofliabilities,write-offsofassets.Gains–Increasesinequity(nAnimportantbusinessindicator.Measuresthedollarsearnedbyeachshareofcommonstock.Mustbedisclosedonthetheincomestatement.EarningsPerShare=Netincome-Preferreddividends WeightedaveragenumberofsharesoutstandingAnimportantbusinessindicatoSingle-StepThesingle-stepstatementconsistsofjusttwogroupings:RevenuesExpensesNetIncomeSingle-StepNodistinctionbetween

Operating

and

Non-operating

categories.FormsoftheincomestatementSingle-StepThesingle-stepstaSeparatesoperatingtransactionsfromnonoperatingtransactions.Matchescostsandexpenseswithrelatedrevenues.Highlightscertainintermediatecomponentsofincomethatanalystsuse.

Multiple-StepBackgroundSeparatesoperatingtransactioThepresentationdividesinformationintomajorsections.1.OperatingSection

2.NonoperatingSection

3.Incometax

Thepresentationdividesinfor4.根据相关规定计算填列。“上期金额”栏：上年利润表的“本期金额”。2.根据有关总账科目的发生额分析计算填列；“本期金额”栏：1.根据有关总账科目的本期发生额直接填列；3.根据表内项目计算填列；PreparationoftheIncomeStatement4.根据相关规定计算填列。“上期金额”栏：上年利润表的“本期TheStatementofCashFlows现金流量表是反映企业在一定会计期间现金和和现金等价物流入和流出的会计报表。UsefulnessEntity’sabilitytogeneratefuturecashflows.Entity’sabilitytopaydividendsandobligations.Reasonsfordifferencebetweennetincomeandnetcashflowfromoperatingactivities.Cashandnoncashinvestingandfinancingtransactions.TheStatementofCashFlows库存现金银行存款其他货币资金现金等价物现金各项目之间的转换、非现金各项目之间的转换都不会产生现金流量。注意highlyliquid,short-terminvestmentsthatcanbeconvertedintocashwithlittledelay.CashonhandCashinthebankTheterm“Cash”=

Cashandcashequivalents库存现金银行存款其他货币资金现金等价物现金各项目之间ClassificationofCashFlowsIncomeStatementItemsOperatingActivitiesGenerallyLong-TermAssetItemsInvestingActivitiesGenerallyLong-TermLiabilityandEquityItemsFinancingActivities

企业投资和筹资活动以外的所有交易和事项。Operatingactivitiescreaterevenues,expenses,gains,andlosses.

企业长期资产的购建和不包括在现金等价物范围内的投资及处置活动。Investingactivitiesincreaseanddecrease

long-termassets.

导致企业资本及债务规模和构成发生变化的活动。Financingactivitiesobtaincashfrominvestorsandcreditors.ClassificationofCashFlowsInIncomeStatementItemsIncomeStatementItemsGenerallyLong-TermAssetItemsGenerallyLong-TermLiabilityandEquityItemsGenerallyLong-TermAssetIteThreeSourcesofInformation:ComparativebalancesheetsCurrentincomestatementSelectedtransactiondataStepsinPreparationThreeMajorSteps:Step1.Determinechangeincash.Step2.Determinenetcashflowfromoperatingactivities.Step3.Determinenetcashflowsfrominvestingandfinancingactivities.ThreeSourcesofInformation:SBalanceSheet12/31/07BalanceSheet12/31/08Fiscal2008A=L+OEA=L+OEIncomeStatementStatementofChangesinOEStatementofCashFlows

BalanceSheet12/31/07BalanceSAcompanymustdeterminerevenuesandexpensesonacashbasis.Eliminatetheeffectsofincomestatementtransactionsthatdonotresultinanincreaseordecreaseincash.Convertnetincometonetcashflowfromoperatingactivitiesthrougheitheradirectmethodoranindirectmethod.Step2:DetermineNetCashFlowfromOperatingActivitiesAcompanymustdeterminerevenIndirectMethodCommonadjustmentstoNetIncome(Loss):Depreciationandamortizationexpense.Gainorlossondispositionoflong-termassets.Changeincurrentassetsandcurrentliabilities.Adjustsnetincomeforitemsnotaffectingcash.IndirectMethodCommonadjustmeKraussCompany’sfinancialstatementsfortheyearendedDecember31,2007,containedthefollowingcondensedinformation.KraussCompany’sfinancialstaPreparetheoperatingactivitiessectionofthestatementofcashflowsusingtheindirectmethod

(Step2).PreparetheoperatingactivitiDirectMethod

“Netcashprovidedbyoperatingactivities”istheequivalentofcashbasisnetincome.Deductsoperatingcashdisbursementsfromoperatingcashreceipts.DirectMethod“NetcashproviKraussCompany’sfinancialstatementsfortheyearendedDecember31,2007,containedthefollowingcondensedinformation.KraussCompany’sfinancialstaPreparetheoperatingactivitiessectionofthestatementofcashflowsusingtheDirectmethod

(Step2).PreparetheoperatingactivitiXXXX中级财务会计英文版第十五章-财务报表FA15thefin课件XXXX中级财务会计英文版第十五章-财务报表FA15thefin课件XXXX中级财务会计英文版第十五章-财务报表FA15thefin课件DirectVersusIndirectControversyInFavoroftheDirectMethodShowsoperatingcashreceiptsandpayments.Informationaboutcashreceiptsandpaymentsismorerevealingofacompany’sabilitytogeneratesufficientcashfromoperatingactivitiestopayitsdebts,toreinvestinitsoperations,andtomakedistributionstoitsowners.DirectVersusIndirectControvInFavoroftheIndirectMethodFocusesonthedifferencesbetweennetincomeandnetcashflowfromoperatingactivities.Provideslinkbetweenthestatementofcashflowsandtheincomestatementandbalancesheet.SpecialRulesApplyingtoIndirectMethodsDiscloseInterestpaid.DiscloseIncometaxespaid.InFavoroftheIndirectMethoE23-2(a)Plantassetsthathadcost$20,1006yearsbeforeandwerebeingdepreciatedonastraight-linebasisover10yearswithestimatedscrapvalue$1,000

weresoldfor$5,400.Step3:DetermineNetCashFlowfromInvestingandFinancingActivitiesE23-2(a)PlantassetsthathaE23-2(b)Duringtheyear,10,000sharesofcommonstockwithastatedvalueof$10asharewereissuedfor$43ashare.E23-2(d)Thecompanysustainedanetlossfortheyearof$50,000.Depreciationamountedto$22,000,andagainof$9,000wasrealizedonthesaleoflandfor$39,000cash.E23-2(h)Duringtheyear,treasurystockcosting$47,000waspurchased.E23-2(b)Duringtheyear,10,StatementofCashFlowsStatementofCashFlowsUseofaWorksheetAworksheetinvolvesthefollowingsteps.Step1.Enterthebalancesheetaccountsandtheirbeginningandendingbalancesinthebalancesheetaccountssection.Step2.Enterthedatathatexplainthechangesinthebalancesheetaccountsandtheireffectsonthestatementofcashflowsinthereconcilingcolumnsoftheworksheet.Step3.Entertheincreaseordecreaseincashonthecashlineandatthebottomoftheworksheet.Thisentryshouldenablethetotalsofthereconcilingcolumnstobeinagreement.UseofaWorksheetAworksheet所有者权益变动表是反映构成企业所有者权益的各组成部分当期增减变动情况的报表。1、反映所有者权益各组成部分的增减变动；2、体现了企业综合收益。Thisfinancialstatementshowsthedetailofowners’equityandexplainsthechangesthatoccurredinthecomponentsofowners’equityduringtheyear.StatementofchangesinOwners’Equity一、所有者权益变动表的定义所有者权益变动表是反映构成企业所有者权益的各组成部分二、所有者权益变动表的格式1、上年年末余额2、本年年初金额3、本年增减变动金额净利润直接计入所有者权益的利得和损失所有者投入和减少资本（一）表头（二）正表4、本年年末余额利润分配所有者权益内部结转二、所有者权益变动表的格式1、上年年末余额2、本年年初金额3TheStatementofStockholder’sEquityTheStatementofStockholder’sXXXX中级财务会计英文版第十五章-财务报表FA15thefin课件三、所有者权益变动表的填列“上年金额”栏：上年所有者权益变动表的“本年金额”。“本年金额”栏：1、根据有关准则分析填列。2、根据其他报表项目填列。3、根据所有者权益账户的发生额分析填列。4、根据表内项目计算填列。三、所有者权益变动表的填列“上年金额”栏：上年所有者Notesarethemeansofamplifyingorexplainingtheitemspresentedinthemainbodyofthestatements.NotestotheFinancialStatementsAccountingPoliciesCompaniesshouldpresentastatementidentifyingtheaccountingpoliciesadopted(SummaryofSignificantAccountingPolicies).NotesarethemeansofamplifyCommonNotesInventoryProperty,Plant,andEquipmentCreditorClaimsEquityHolders’ClaimsContingenciesandCommitmentsDeferredTaxes,Pensions,andLeasesChangesinAccountingPrinciplesCommonNotesInventory一、提供附注的原因财务报表附注是对财务报表本身无法或难以充分表述的内容和项目所作的补充说明与详细解释。1、突出财务报表信息的重要性。2、提高报表信息的可比性。3、增强报表信息的可理解性。提供附注的原因：一、提供附注的原因财务报表附注是对财务报表本身无法或二、附注的主要内容（一）企业的基本情况企业注册地、组织形式和总部地址；企业的业务性质和主要经营活动；母公司以及集团最终母公司的名称；财务报告的批准报出者和批准报出日。（二）财务报告的编制基础会计年度、记帐本位币、会计计量基础、现金及现金等价物构成。（三）遵循企业会计准则的声明二、附注的主要内容（一）企业的基本情况企业注册地、组1、会计政策和会计估计的确定依据（四）重要会计政策和会计估计2、会计估计中所采用的关键假设和不确定因素（五）会计政策和会计估计变更以及差错更正的说明（六）报表重要项目的说明（七）或有事项（八）资产负债表日后事项（九）关联方关系及其交易1、会计政策和会计估计的确定依据（四）重要会计政策和会计估计EndofChapter15EndofChapter15FinancialStatementsChapter15IntermediateAccounting12thEditionKieso,Weygandt,andWarfield

FinancialStatementsChapter15Explaintheusesandlimitationsofabalancesheet.Prepareaclassifiedbalancesheetusingthereportandaccountformats.Understandtheusesandlimitationsofanincomestatement.Prepareamultiple-stepincomestatement.Understandtheusefulnessofthestatementofcashflows.Identifythemajorclassificationsofcashflows.Prepareastatementofcashflows.LearningObjectivesExplaintheusesandlimitatioBalanceSheetStatementofCashFlowsUsefulnessClassificationPreparationWorksheetFinancialStatementsUsefulnessLimitationsClassificationpreparationIncomeStatementUsefulnessLimitationsFormspreparationIntroduc-tionTypeofFinancialStatements

PreparingRequirementNotesStatementofchangesinOE定义格式填列BalanceSheetStatementofCas财务报表是对企业财务状况、经营成果和现金流量的结构性表述。IntroductionofFinancialStatements财务报表是对企业财务状况、经营成果和现金流量的结构性1、按反应内容分类动态报表2、按编报期间分类汇总报表个别报表3、按编报主体分类月报季报半年报中期报表静态报表年度报表合并报表TypeofFinancialStatements1、按反应内容分类动态报表2、按编报期间分类汇总报表个别报表Requirement

aboutpreparingFinancialStatements（一）列报基础持续经营（三）重要性和项目列报1、性质或功能不同的项目，一般应单独列报。2、性质或功能类似的项目，其所属类别具有重要性的，应按其类别列报。（二）列报的一致性Requirement

aboutpreparing财务报表中的资产和负债、收入和费用不能相互抵消。下列不属于抵消：1、资产项目按扣除减值准备后的金额列示2、非日常活动产生的损益按净额列示（四）财务报表项目金额间的相互抵消（五）比较信息的列报（六）财务报表表首的列报（七）准则规定单独列报的项目应单独列报。财务报表中的资产和负债、收入和费用不能相互抵消。下列资产负债表是反映企业某一特定日期财务状况的会计报表。TheBalanceSheetEvaluatingthecapitalstructure.Assessriskandfuturecashflows.Analyzethecompany’s:Liquidity,Solvency,andFinancialflexibility.UsefulnessoftheBalanceSheet资产负债表是反映企业某一特定日期财务状况的会计报表。Mostassetsandliabilitiesarereportedathistoricalcost.Useofjudgmentsandestimates.Manyitemsoffinancialvalueareomitted.LimitationsoftheBalanceSheetMostassetsandliabilitiesarThreeGeneralClassificationsAssetsLiabilities,andStockholders’EquityClassificationintheBalanceSheetThreeGeneralClassificationsLiabilitiesEquityAssets=+LiabilitiesEquityAssets=+Cashandotherassetsacompanyexpectstoconvertintocash,sell,orconsumeeitherinoneyearorintheoperatingcycle,whicheverislonger.

CurrentAssetsCashandotherassetsacompanLong-TermInvestmentsNoncurrentAssetsProperty,Plant,andEquipmentIntangiblesOtherAssetsLong-TermInvestmentsNoncurren“Obligationsthatacompanyreasonablyexpectstoliquidateeitherthroughtheuseofcurrentassetsorthecreationofothercurrentliabilities.”CurrentLiabilities“Obligationsthatacompanyre“Obligationsthatacompanydoesnotreasonablyexpecttoliquidatewithinthenormaloperatingcycle.”Long-TermLiabilities“ObligationsthatacompanydoCompaniesusuallydivideequityintothreeparts,(1)CapitalStock,(2)AdditionalPaid-InCapital,and(3)RetainedEarnings.Owners’EquityCompaniesusuallydivideequit(a) InvestmentinpreferredstockBalanceSheetClassificationExerciseAccount(b) Treasurystock(c) Commonstock(d) Cashdividendspayable(e) Accumulateddepreciation(f) Interestpayable(g) Deficit(h) Tradingsecurities(i) Unearnedrevenue(a) Currentasset/Investment(b) Equity(c) Equity(d) Currentliability(e) Contra-asset(f) Currentliability(g) Equity(h) Currentasset(i) CurrentliabilityClassification(a) InvestmentinpreferredstPreparationofthebalancesheet“年初余额”栏：上年末资产负债表的“期末余额”。2.根据总账科目期末余额分析计算填列；“期末余额”栏：1.根据总账科目期末余额直接填列；3.根据明细科目期末余额分析计算填列；4.根据总账科目余额减去其备抵科目余额后的净额填列；5.根据表内项目计算填列。PreparationofthebalancesheEvaluatepastperformance.Predictingfutureperformance.Helpassesstheriskoruncertaintyofachievingfuturecashflows.IncomeStatementUsefulnessoftheIncomeStatement

利润表是反映企业在一定会计期间的经营成果的会计报表。Evaluatepastperformance.IncoCompaniesomititemsthatcannotbemeasuredreliably.Incomeisaffectedbytheaccountingmethodsemployed.Incomemeasurementinvolvesjudgment.LimitationsoftheIncomeStatementCompaniesomititemsthatcannRevenues–Inflowsorotherenhancementsofassetsorsettlementsofitsliabilitiesthatconstitutetheentity’songoingmajororcentraloperations.SalesFeerevenueInterestrevenueDividendrevenueRentrevenueExamplesofRevenueAccountsElementsoftheIncomeStatementRevenues–InflowsorotherenExpenses–Outflowsorotherusing-upofassetsorincurrencesofliabilitiesthatconstitutetheentity’songoingmajororcentraloperations.CostofgoodssoldDepreciationexpenseInterestexpenseRentexpenseSalaryexpenseExamplesofExpenseAccountsExpenses–OutflowsorotheruGains–Increasesinequity(netassets)fromperipheralorincidentaltransactions.Losses-Decreasesinequity(netassets)fromperipheralorincidentaltransactions.Gainsandlossescanresultfromsaleofinvestmentsorplantassets,settlementofliabilities,write-offsofassets.Gains–Increasesinequity(nAnimportantbusinessindicator.Measuresthedollarsearnedbyeachshareofcommonstock.Mustbedisclosedonthetheincomestatement.EarningsPerShare=Netincome-Preferreddividends WeightedaveragenumberofsharesoutstandingAnimportantbusinessindicatoSingle-StepThesingle-stepstatementconsistsofjusttwogroupings:RevenuesExpensesNetIncomeSingle-StepNodistinctionbetween

Operating

and

Non-operating

categories.FormsoftheincomestatementSingle-StepThesingle-stepstaSeparatesoperatingtransactionsfromnonoperatingtransactions.Matchescostsandexpenseswithrelatedrevenues.Highlightscertainintermediatecomponentsofincomethatanalystsuse.

Multiple-StepBackgroundSeparatesoperatingtransactioThepresentationdividesinformationintomajorsections.1.OperatingSection

2.NonoperatingSection

3.Incometax

Thepresentationdividesinfor4.根据相关规定计算填列。“上期金额”栏：上年利润表的“本期金额”。2.根据有关总账科目的发生额分析计算填列；“本期金额”栏：1.根据有关总账科目的本期发生额直接填列；3.根据表内项目计算填列；PreparationoftheIncomeStatement4.根据相关规定计算填列。“上期金额”栏：上年利润表的“本期TheStatementofCashFlows现金流量表是反映企业在一定会计期间现金和和现金等价物流入和流出的会计报表。UsefulnessEntity’sabilitytogeneratefuturecashflows.Entity’sabilitytopaydividendsandobligations.Reasonsfordifferencebetweennetincomeandnetcashflowfromoperatingactivities.Cashandnoncashinvestingandfinancingtransactions.TheStatementofCashFlows库存现金银行存款其他货币资金现金等价物现金各项目之间的转换、非现金各项目之间的转换都不会产生现金流量。注意highlyliquid,short-terminvestmentsthatcanbeconvertedintocashwithlittledelay.CashonhandCashinthebankTheterm“Cash”=

Cashandcashequivalents库存现金银行存款其他货币资金现金等价物现金各项目之间ClassificationofCashFlowsIncomeStatementItemsOperatingActivitiesGenerallyLong-TermAssetItemsInvestingActivitiesGenerallyLong-TermLiabilityandEquityItemsFinancingActivities

企业投资和筹资活动以外的所有交易和事项。Operatingactivitiescreaterevenues,expenses,gains,andlosses.

企业长期资产的购建和不包括在现金等价物范围内的投资及处置活动。Investingactivitiesincreaseanddecrease

long-termassets.

导致企业资本及债务规模和构成发生变化的活动。Financingactivitiesobtaincashfrominvestorsandcreditors.ClassificationofCashFlowsInIncomeStatementItemsIncomeStatementItemsGenerallyLong-TermAssetItemsGenerallyLong-TermLiabilityandEquityItemsGenerallyLong-TermAssetIteThreeSourcesofInformation:ComparativebalancesheetsCurrentincomestatementSelectedtransactiondataStepsinPreparationThreeMajorSteps:Step1.Determinechangeincash.Step2.Determinenetcashflowfromoperatingactivities.Step3.Determinenetcashflowsfrominvestingandfinancingactivities.ThreeSourcesofInformation:SBalanceSheet12/31/07BalanceSheet12/31/08Fiscal2008A=L+OEA=L+OEIncomeStatementStatementofChangesinOEStatementofCashFlows

BalanceSheet12/31/07BalanceSAcompanymustdeterminerevenuesandexpensesonacashbasis.Eliminatetheeffectsofincomestatementtransactionsthatdonotresultinanincreaseordecreaseincash.Convertnetincometonetcashflowfromoperatingactivitiesthrougheitheradirectmethodoranindirectmethod.Step2:DetermineNetCashFlowfromOperatingActivitiesAcompanymustdeterminerevenIndirectMethodCommonadjustmentstoNetIncome(Loss):Depreciationandamortizationexpense.Gainorlossondispositionoflong-termassets.Changeincurrentassetsandcurrentliabilities.Adjustsnetincomeforitemsnotaffectingcash.IndirectMethodCommonadjustmeKraussCompany’sfinancialstatementsfortheyearendedDecember31,2007,containedthefollowingcondensedinformation.KraussCompany’sfinancialstaPreparetheoperatingactivitiessectionofthestatementofcashflowsusingtheindirectmethod

(Step2).PreparetheoperatingactivitiDirectMethod

“Netcashprovidedbyoperatingactivities”istheequivalentofcashbasisnetincome.Deductsoperatingcashdisbursementsfromoperatingcashreceipts.DirectMethod“NetcashproviKraussCompany’sfinancialstatementsfortheyearendedDecember31,2007,containedthefollowingcondensedinformation.KraussCompany’sfinancialstaPreparetheoperatingactivitiessectionofthestatementofcashflowsusingtheDirectmethod

(Step2).PreparetheoperatingactivitiXXXX中级财务会计英文版第十五章-财务报表FA15thefin课件XXXX中级财务会计英文版第十五章-财务报表FA15thefin课件XXXX中级财务会计英文版第十五章-财务报表FA15thefin课件DirectVersusIndirectControversyInFavoroftheDirectMethodShowsoperatingcashreceiptsandpayments.Informationaboutcashreceiptsandpaymentsismorerevealingofacompany’sabilitytogeneratesufficientcashfromoperatingactivitiestopayitsdebts,toreinvestinitsoperations,andtomakedistributionstoitsowners.DirectVersusIndirectControvInFavoroftheIndirectMethodFocusesonthedifferencesbetweennetincomeandnetcashflowfromoperatingactivities.Provideslinkbetweenthestatementofcashflowsandtheincomestatementandbalancesheet.SpecialRulesApplyingtoIndirectMethodsDiscloseInterestpaid.DiscloseIncometaxespaid.InFavoroftheIndirectMethoE23-2(a)Plantassetsthathadcost$20,1006yearsbeforeandwerebeingdepreciatedonastraight-linebasisover10yearswithestimatedscrapvalue$1,000

weresoldfor$5,400.Step3:DetermineNetCashFlowfromInvestingandFinancingActivitiesE23-2(a)PlantassetsthathaE23-2(b)Duringtheyear,10,000sharesofcommonstockwithastatedvalueof$10asharewereissuedfor$43ashare.E23-2(d)