The Balance Sheet and Notes to the Financial Statements参考.ppt

The Balance Sheet and Notes to Financial Statements Learning Objectives Describe the specific elements of the balance sheet (assets, liabilities, and owners’ equity), and prepare a balance sheet with assets and liabilities properly classified into current and noncurrent categories. Learning Objectives Recognize the importance of the notes to the financial statements, and outline the types of disclosures made in the notes. The Balance Sheet A balance sheet presents a listing of an organization’s assets and liabilities at a certain point in time. The difference between assets and liabilities is called equity. The balance sheet is designed using the basic accounting equation: Assets = Liabilities + Owners’ Equity Current Assets Noncurrent Assets Plant, Property, and Equipment Intangible Assets Callable Obligations Noncurrent Liabilities Current liabilities do not usually include: Noncurrent Liabilities Noncurrent Liabilities Long-term debt is reported at its discounted present value. When a note, bond issue, or a mortgage becomes payable within a year, it should be reclassified as a current liability. For a capital lease, the present value of the future minimum payments is recorded as a long-term liability. Most large companies include deferred income tax liabilities on the balance sheet. Contingent Liabilities Past activities or circumstances may give rise to possible future liabilities, although obligations do not exist on the balance sheet date. These potential claims that involve uncertainty as to possible losses are known as contingent liabilities An estimated liability is a definite obligation with only the amount in question and subject to estimation on the balance sheet date. Owners’ Equity Can also be called stockholders’ or shareholders’ equity. Generally divided into two parts: Contributed capital (also known as paid-in-capital) Retained earnings Contributed Capital Two parts of contributed capital: Capital stock—the number of shares ? the par value Pre