[会计英文教材第一集.ppt

Learning Objectives Describe the purpose of financial reporting and identify the primary financial statements. Explain the function of accounting standards and describe the role of the FASB in setting these standards in the United States. Recognize the importance to financial reporting of the SEC, AICPA, AAA, and IRS. Learning Objectives Realize the growing importance and relevance of international accounting issues to the practice of accounting in the United States and understand the role of the IASC in international accounting standard setting. Understand the significance of the FASB’s conceptual framework in outlining the qualities of good accounting information, defining terms such as asset and revenue, and providing guidance about appropriate recognition, measurement, and reporting. Definition for Accounting “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.” (APB 4.40). Definition for Accounting Accounting provides a vital service in today’s business environment. Accounting is concerned primarily with quantitative financial information that is used in conjunction with qualitative evaluations in making judgments. Users of Accounting Information Financial Statement Relationships Accounting Standard-Setting Organizations Securities and Exchange Commission (1934-present) 1929 stock market crash blamed on nonstandard accounting. 1934 Securities Act established SEC to standardize accounting. Created to protect the interests of investors by ensuring full and fair disclosure. Granted legal authority to dictate GAAP. Has tended to defer setting GAAP to the accounting profession. Financial AccountingStandards Board (1973-present) Seven full-time members comprise this independent body. Issues Statements of Financial Accounting Standards. Determines GAAP by