威廉斯科特Scott财务会计理论(第七版)全套PPT课件.pptx

1 - 1Copyright ? 2015 Pearson Canada Inc. 1 - 2Financial Accounting TheorySeventh EditionWilliam R. ScottPurpose: To create an awareness and understanding of the financial reporting environment in a market economy 1 - 3Chapter 1Introduction 1.2 Some Historical PerspectiveEarly developmentGreat depression of 1930s reinforced historical cost accountingAlternatives to historical costCurrent value accountingValue-in-useFair value (also called exit price, opportunity cost)Mixed measurement model1 - 4 1.2 Collapse of the Stock Market Boom of Late 1990sEnronWorldComCollapse of public confidence in capital marketsEffects on financial reportingIncreased regulation and corporate governanceSarbanes-Oxley ActTighten rules re off-balance sheet entities1 - 5 1.3 Market Meltdowns, 2007-2008TerminologySecuritizationFinancial instrumentsAsset-backed securitiesCollateralized debt obligationsAsset-backed commercial paperCredit default swapsExpected loss notesLiquidity riskLiquidity pricingCounterparty risk Continued1 - 6 Market Meltdowns, 2007-2008 (continued) Financial accounting issues leading up to the market meltdownsFair value accounting for financial instrumentsLiquidity pricingFair value less than value-in-useSevere criticism of fair value accountingHigh leverage of financial institutionsOff-balance sheet liabilitiesUse of expected loss notes to avoid consolidation of structured investment vehiclesWas disclosure of off-balance sheet liabilities adequate? Continued1 - 7 Market Meltdowns, 2007-2008 (continued) Response of standard settersStopgap measures in response to government pressureFair value accounting guidance during liquidity pricingIncreased use of internal estimates (value-in-use)Increased use of cost-based valuationNew accounting standardsConsolidationDerecognitionIncreased disclosureResponse of standard setters considered in greater detail in Chapter 7 Continued 1 - 8 Market Meltdowns, 2007-2008 (continued) Response of other regulato