下载掌阅APP，畅读海量书库
立即打开
Matthew & Co. makes navigation equipment and wishes to diversify into the production of hang gliders. The business is based in Shanghai but the owners may be willing to move. The owners have little knowledge about the market of hang gliders but feel that there is money to be made in that field. Identify：（1）the accounting information that would be relevant；（2）any other information that would be relevant.
Accounting has been called “the language of business” and most people interact on a daily basis in some way with business enterprises.
Most organizations engage in some forms of economic activities.Some of them exist as not-for-profits.These groups may provide services or goods to others but seek to do so without the underlying goal of generating profits.Most of organizations are businesses.They attempt to earn a return over the cost of providing services or goods that satisfy the needs or wants of others.Businesses are typically categorized into three broad groups：service，manufacturing，and merchandising companies.Businesses operate in many different legal forms according to different jurisdictions.Generally，there are three legal forms of businesses：sole proprietorships，partnerships，and corporations. Nearly all organizations use accounting to generate information about their economic activities.This book focuses on business organizations.
First and foremost，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.”
Thus，accounting is a means to assist a wide variety of parties in making economic decisions. Sound decisions，based on reliable information，are essential for the efficient distribution and use of the scarce economic resources. Accounting，therefore，plays an important role in our economic and social system.
In general，users（decision-makers）of accounting information are divided into two major categories：internal and external.
The major internal users are management and directors of the business enterprise. Internal users need information to assist in planning and controlling enterprise operations and managing enterprise resources. The accounting system must provide timely information needed to control day-to-day operations and to make major planning decisions，such as：Do we make this product or another one？Do we build a new production plant or expand existing facilities？ Managerial accounting （sometimes referred to as management accounting ）is concerned primarily with financial reporting for internal users.
External users include both individuals who have or intend to have a direct economic interest in a business and those who have an indirect interest because they advise or represent those individuals with a direct interest. These users include present and potential investors and creditors，suppliers
，customers，financial analysts and advisors，regulatory authorities，the public，etc. Investorsuse accounting information to make decisions to buy，hold，or sell ownership shares of a company.Creditors，such as suppliers and bankers，use accounting information to evaluate the risks of granting credit or lending money.
Financial accounting
emphasizes these users' needs.
1.Financial Accounting
Financial accounting is the preparation and presentation of financial reports for users who are not involved in the day-to-day operations of an organization.The information is distributed primarily through general purpose financial statements which suit the decision-making needs of a range of users.However，many companies issue their financial statements only after an audit by independent CPAs.Audit is a thorough check of an organization's accounting systems and records；it is performed to add credibility to the financial statements prepared by an organization's own accountants.The objective of audit is to decide whether the statements reflect the company's financial position and the operating results agree with generally accepted accounting principles（GAAP）.
2.Managerial Accounting
Managerial accounting involves several activities providing information to managers. Cost accounting is a process of accumulating the information managers need about operating costs and is useful for evaluating each manager's performance.Cost accounting may involve accounting for the costs of products，services，or specific activities. Budgeting is the process of developing formal plans for an organization's future activities.After the budget has been adopted，it provides a basis for evaluating actual performance.
Accounting process is“identifying，measuring，recording，and communicating economic information to permit informed judgments and decisions by users of information.”
The first component of the process is identifying information relevant to business decision-making.Only business transactions will be recognized by the accounting system.A business transaction is an event which affects the financial position of an entity and can be reliably measured and recorded.Events such as increases in interest rates which will not immediately affect an entity's financial position will not be categorized as business transactions.
The second component is the measuring of information，which refers to the analysis of business transactions and classifying of business transactions.This component identifies how transactions will affect an entity's position，groups together similar items such as expenses and income，and determining the monetary aspect of the transactions.
The third component is recording.The company records the economic events in order to provide a history of its financial activities.Recording consists of keeping a systematic，chronological diary of events.In recording，the company also classifies and summarizes economic events.
The final component is the communicating of relevant information through accounting reports.The most common of these reports are called financial statements，such as income statement and balance sheet
，for decision-making purposes for the various users.
The overall objective of financial reporting is to provide useful financial information to external users in making economic decisions.To provide different reports for different users，or to make available all of the information that users would need to assemble their own custom-designed reports，would be expensive.IASB concluded that：（1）the primary user group should be the existing and potential investors，lenders and other creditors of a reporting entity；（2）a general purpose financial report is the most efficient and effective way to meet the information needs of a variety of users.
The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors ， lenders and other creditors in making decisions relating to providing resources to the entity . Those decisions involve decisions about ：
（a） buying ， selling or holding equity and debt instruments ；
（b） providing or settling loans and other forms of credit ； or
（c）
exercising rights to vote on，or otherwise influence
，
management's actions that affect the use of the entity's economic resources
.
The general purpose financial reports do not and cannot provide all of the information that the external users need.Those users need to consider pertinent information from other sources，for example，general economic conditions and expectations，political events and political climate，industry and company outlooks.
Decisions by investors about buying，selling or holding equity and debt instruments depend on the returns that they expect from those instruments，for example，dividends，principal and interest payments or market price increases.Similarly，decisions by creditors about providing or settling loans and other forms of credit depend on the principal and interest payments.Investors and creditors may also make their decisions about exercising rights to vote on，or otherwise influence，management's actions that affect the use of the entity's economic resources.Investors' and creditors' expectations about returns depend on their assessment of the amount，timing and uncertainty of（the prospects for）future net cash inflows to the entity.
To assess an entity's prospects for future net cash inflows，investors and creditors need for information about the resources of the entity，claims against the entity，and how efficiently and effectively the entity's management and governing board have discharged their responsibilities to use the entity's resources.
General purpose financial reports provide information about the financial position of a reporting entity ，which is information about the entity's economic resources and the claims against the reporting entity.
The financial position of an entity is affected by the economic resources it controls，its financial structure，its liquidity and solvency，and its capacity to adapt to changes in the environment in which it operates.Information about the economic resources controlled by the entity and its capacity in the past to modify these resources is useful in predicting the ability of the entity to generate cash and cash equivalents in the future.Information about financial structure is useful in predicting future borrowing needs and how future profits and cash flows will be distributed among those with an interest in the entity；it is also useful in predicting how successful the entity is likely to be in raising further finance.Information about liquidity and solvency is useful in predicting the ability of the entity to meet its financial commitments as they fall due.Information about financial position is primarily provided in a balance sheet，or a statement of financial position.
Financial reports also provide information about the effects of transactions and other events that change a reporting entity's economic resources and claims.The changes result from that entity's financial performance and from other events or transactions such as issuing debt or equity instruments.
1.Financial Performance
Information about a reporting entity's financial performance helps users to understand the return that the entity has produced on its economic resources.Information about the variability and components of that return is also important，especially in assessing the uncertainty of future cash flows.
Information about the return the entity has produced provides an indication of how well management has discharged its responsibilities to make efficient and effective use of the reporting entity's resources.
Information about a reporting entity's past financial performance and how its management discharged its responsibilities is usually helpful in predicting the entity's future returns on its economic resources.
2.Other Events or Transactions
A reporting entity's economic resources and claims may also change for reasons other than financial performance，such as issuing additional ownership shares.Information about this type of change is necessary to give users a complete understanding of why the reporting entity's economic resources and claims changed and the implications of those changes for its future financial performance.
Information about how efficiently and effectively the reporting entity's management has discharged its responsibilities to use the entity's economic resources helps users to assess management's stewardship of those resources.
Management and governing board are accountable for planning and controlling the operations of the entity to those who provide resources.Examples of such responsibilities include protecting the entity's resources from unfavorable effects of economic factors such as price and technological changes and ensuring that the entity complies with applicable laws，regulations and contractual provisions.In a broad sense，because of the influence entities exert on community at both microeconomic and macroeconomic levels，they are accountable to the public.Information about management's discharge of its responsibilities is also useful for decisions by existing investors，lenders and other creditors who have the right to vote on or otherwise influence management's actions.For example，users may decide whether to hold or sell their investment in the entity or whether to reappoint or replace the management.
Traditionally，there are four underlying assumptions：economic entity，going concern，unit of measurement and accounting period.However，IASB emphasizes only one underlying assumption in the Conceptual Framework for Financial Reporting：going concern.
1.Economic Entity
The business enterprise is viewed as a specific economic entity separate and distinct from its owners and any other business unit.For example，China National Petroleum Corporation（CNPC）owns about 82.46% equity of PetroChina Company Limited.
Nevertheless，PetroChina Company Limited accounts for its operations as a separate entity and prepares its own financial statements.
2.Going Concern
The going concern assumption reflects accountants' belief that a business will continue to operate“long enough to use its longest-lived asset”，unless there is evidence to the contrary.Thus，a company reports its long-term assets，such as property，plant and equipment，based on their costs rather than the liquidation values.
3.Unit of Measurement
The unit of measurement assumption mandates that the business use a common unit of measurement in accounting for their transactions.This assumption allows financial data to be quantified，summarized，and reported in a uniform，timely，and consistent manner.Traditionally，the unit of measurement is assumed to be a stable monetary unit.Because of this assumption，changes in the purchasing power of money unit resulting from inflation have been ignored.However，many countries with historically high inflation routinely requireinflation-adjusted financial statements.
4.Accounting Period
The profitability of a business cannot be truly assessed until it ceases operations.However，decision-makers demand financial information about business entities on a timely basis.The accounting period assumption allows accountants to prepare meaningful financial reports for ongoing business by dividing their lives into reporting intervals of equal length.List companies regulated by China Securities Regulatory Commission must issue financial statements quarterly，Semiannually and annually.
Accounting recognizes the effects of transactions and other events when they occur rather than only when cash or its equivalent is received or paid，and reports these effects in the financial statements of the periods to which they relate.This is known as the accrual basis of accounting.The accrual basis recognizes that a company's financial position and performance can change without any cash changing hands，although it usually occurs with a right to receive cash or an obligation to pay cash in the future.Accrual accounting recognizes these changes when they occur.
An alternative to the accrual basis of accounting is the cash basis of accounting，which recognizes changes in financial position and performance only when cash is received or paid.The cash basis of accounting is not consistent with IASB framework.
We live in an age of technological advancements and innovation，such as cloud computing，big data，process automation，artificial intelligence，blockchain，the Internet of Things，mobile technologies，3-D printing. These factors are transforming the way in which we work and live. Big data and the Internet of Things generate huge amounts of data；data analytics transforms this into useful information that supports artificial intelligence and machine learning. Essentially process automation is becoming smarter and can make decisions using reasoning，language and learned behavior.
Repetitive，low-skilled manual tasks such as data entry，duplication and processes that add minimal value to the end users of financial information are most likely to be automated by new developments in process automation software. This will free up time and resource for higher level value-added activities. However，retaining expertise and ensuring knowledge and understanding of the basic functions of accounting systems and how these functions operate will be a challenge for the modern finance professional.
accounting period 会计期间，又称为会计分期
accounting process 会计程序
accounting 会计，会计学
accrual basis 权责发生制，又称为应计制基础
annual report 年度报告
audit 审计
auditing 审计，审计学
balance sheet 资产负债表
budgeting 预算
cash and cash equivalents 现金及现金等价物
cash basis 现金收付制，又称为现金基础
cash flow statement 现金流量表
certified public accountant（CPA） 注册会计师
corporation 公司
cost accounting 成本会计
economic entity 经济实体
financial accounting 财务会计
financial position 财务状况
forecast 预测
general purpose financial reports 通用目的财务报告
generally accepted accounting principles（GAAP） 一般公认会计原则
going concern 持续经营
income statement 利润表
internal auditing 内部审计
International Accounting Standard Board（IASB） 国际会计准则理事会
managerial（or management）accounting 管理会计
（monetary）unit of measurement 货币计量
not-for-profits 非营利组织
partnership 合伙
performance 业绩
sole proprietorship 独资（企业）
Conceptual Framework for Financial Reporting 《财务报告的概念框架》
会计
会计（accounting）的定义有很多种，并随着经济环境的变化而有所不同。常见的定义有信息系统、管理活动、管理工具、服务活动等。本书采用了会计是一项服务活动的观点，这一定义强调会计在市场经济环境中的地位和作用，突出会计理论框架的起点——会计目标，并且被各国会计准则制定机构（包括国际会计准则理事会）采纳。
一般公认会计原则
一般公认会计原则（GAAP）是指被会计行业采纳的用于指导报告企业经济活动的原则，包含一般原则（broad principles）和特定原则（specific principles）。一般原则来自长期采纳的会计实务，特定原则主要由规则制定者建立和发布。会计准则是GAAP的主要组成部分。
会计信息的局限性
虽然会计信息为内外部使用者提供了大量对决策有用的信息，但是使用者仍然需要其他方面的信息。例如，潜在投资者除了研究公司的财务报告外，还需要其他来源的信息，如该公司的市场份额、上市时间、公司未来发展战略、行业信息等。会计信息的局限性还表现在：①一般只提供财务信息，即那些可以用货币量化的信息；②披露时间滞后，会计年度结束到年度报告对外公布一般需要2～4个月；③财务信息主要基于历史信息，而使用者的决策主要面向未来；④会计信息生成过程有很多主观判断因素，如固定资产使用年限、残值等，并且存在会计政策选择问题，如存货发出的计价可以采用先进先出法或者加权平均法。
大数据（Big Data）、人工智能（AI）等新技术对会计的影响
在“2022年影响中国会计人员的十大信息技术”评选中，排名前10的技术分别是：财务云、会计大数据分析与处理技术、流程自动化（RPA和IPA）、中台技术（数据、业务、财务中台等）、电子会计档案、电子发票、在线审计与远程审计、新一代ERP（企业资源计划）、在线与远程办公、商业智能（BI）。
在这些新技术的影响下，会计的数字化转型在所难免。就企业而言，会计数字化转型具体包括以下几个方面。
第一，会计数据标准化，包括会计信息系统的输入、处理与输出各环节的数据标准化。
第二，推动业务与会计深度融合，业务数据与会计数据共享合作，形成可扩展、可聚合、可比对的会计与业务数据，提升企业数据治理水平。
第三，拓展会计职能，开展个性化、有针对性的管理会计活动，加强绩效管理，增强价值创造力。
第四，完善内部控制制度的信息化配套建设，推动内部控制制度有效实施。
在国家层面，相关部门构建符合时代要求的国家会计信息化发展体系，国家会计信息化发展体系的具体内容如图1-1所示。
图1-1 国家会计信息化发展体系
资料来源：财政部，会计信息化发展规划（2021—2025 年）。
1.Accounting has been defined as a service activity.Who is served by accounting and how are they benefited？
2.What are the major objectives of financial reporting as specified by the IASB？
3.Briefly describe the four traditional assumptions that influence the conceptual framework.
4.Identify and describe the underlying assumptions specified by the IASB.
5.Alan Rod has recently completed his first year of accounting study. His instructor for next semester has indicated that the primary focus in the next semester will be the area of financial accounting.
（a）Differentiate between financial accounting and managerial accounting.
（b）One part of financial accounting involves the preparation of financial statements.What are the financial statements most frequently provided？
（c）What is the difference between financial statements and financial reporting？