Chapter 1 The Environment of Financial Reporting.ppt

1 The Environment of Financial Reporting
Accounting School · Zhongnan University of Economics & Law
ntermediate Accounting
I
中级会计学
Intermediate Accounting 1 The Environment of Financial Reporting
Forewords
Course nature and objective
Teaching methods
Test requirements and form
Scoring system
Brief contents
Intermediate Accounting 1 The Environment of Financial Reporting
I. Accounting information: users, uses, and GAAP in .
Companies may obtain capital by issuing capital stock or by borrowing from lenders
Stock Exchange
Bank
Intermediate Accounting 1 The Environment of Financial Reporting
“Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions--in making reasoned choices among alternative courses of action.”(Statement of the Accounting Principles Board No. 4, p. 40)
Accounting Information Economic Activities and Decision Making
Accumu-
late
Accounting
Information
Communi-
cate
External
User
Internal
User
External Decision Making
Internal Decision Making
Company’s Economic Activities
Impact
Impact
Intermediate Accounting 1 The Environment of Financial Reporting
Intermediate Accounting 1 The Environment of Financial Reporting
Investors
Community
Board of Directors
Management
Employees
Suppliers
Employees
Creditors
Customers
Analysts
Government
Major Internal and External Stakeholder Groups
Intermediate Accounting 1 The Environment of Financial Reporting
Intermediate Accounting 1 The Environment of Financial Reporting
Comparison of Financial and Managerial Accounting
Sources of Authority;
Statement Format;
Decision Focus…
Could you illustrate differences between financial and managerial accounting?
Intermediate Accounting 1 The Environment of Financial Reporting
Financial Reporting
Financial reporting is the process municating financial accounting information about pany to e