西方财务会计培训教材(英文版).pptx

C H A P T E R 4 INCOME STATEMENT AND RELATED INFORMATION Intermediate Accounting 13th Edition Kieso, Weygandt, and Warfield Understand the uses and limitations of an income statement. Prepare a single-step income statement. Prepare a multiple-step income statement. Explain how to report irregular items. Explain intraperiod tax allocation. Identify where to report earnings per share information. Prepare a retained earnings statement. Explain how to report other comprehensive income. Learning Objectives Elements Single-step Multiple-step Condensed income statements Income Statement Format of the Income Statement Reporting Irregular Items Special Reporting Issues Usefulness Limitations Quality of Earnings Discontinued operations Extraordinary items Unusual gains and losses Changes in accounting principles Changes in estimates Corrections of errors Intraperiod tax allocation Earnings per share Retained earnings statement Comprehensive income Income Statement and Related Information Evaluate past performance. Income Statement LO 1 Understand the uses and limitations of an income statement. Help assess the risk or uncertainty of achieving future cash flows. Predicting future performance. Usefulness Companies omit items that cannot be measured reliably. Income Statement Limitations LO 1 Understand the uses and limitations of an income statement. Income measurement involves judgment. Income is affected by the accounting methods employed. Companies have incentives to manage income to meet or beat Wall Street expectations, so that market price of stock increases and value of stock options increase. Income Statement LO 1 Understand the uses and limitations of an income statement. Quality of earnings is reduced if earnings management results in information that is less useful for predicting future earnings and cash flows. Quality of Earnings Format of the Income Statement LO 1 Understand the uses and limitations of an income statement. Revenues – Inflows or other