(本科）会计专业英语教案Chapter 7.docx

(本科）会计专业英语教案Chapter 7教学目标知识目标：Understand the main elements of financial statements能力目标: Describe the content of each financial statements. Describe the components that supplement the financial statements in an annual report. 素质目标：Understand how accounting information is used and why it is important.教学重点Understand how accounting information is used and why it is important.教学难点Understand how accounting information is used and why it is important.教学手段结合理论与案例小组讨论教学学时4课时教 学 内 容 与 教 学 过 程 设 计注 释Chapter 7 Introduction to Financial statements理论知识Topic 1: An Overview of Financial StatementFinancial statements for business usually include income statements, balance sheets, statements of retained earnings and cash flows. It is standard practice for businesses to present financial statements that adhere to generally accepted accounting principles (GAAP) to maintain continuity of information and presentation across international borders. Financial statements are often audited by government agencies, accountants or firms to ensure accuracy and for tax, financing and investing. The main objective of financial reporting is to provide useful financial information to a companys existing and potential external-capital providers. The primary users of financial reporting are investors, lenders and other credit providers; the other users include management of the company, government and other stakeholders. Topic 2: Balance Sheet1. DefinitionA balance sheet provides insight into a firm's solvency, emphasizing corporate assets, liabilities and net worth. Net worth, or equity capital, equals total assets minus total liabilities. Analyzing corporate statements of financial condition requires analytical dexterity and a knack for identifying economic factors that improve a company's success in the marketplace.2. Content of balance sheet(1) AssetsCorporate assets are economic resources that a company relies on to operate. Accountants separate assets into five categories: current assets, long-term investments, fixed assets or "property, plant and equipment," intangible resources and other assets. (2) LiabilitiesLiabilities are debts that a firm must repay. Debts also can be non-monetary obligations that a company must honor on time, especially if it provides a financial guarantee in a borrowing agreement on behalf of a third party. (3)Equity CapitalEquity capital consists of investments that corporate owners make in a company. Buyers of equity are otherwise known as shareholders, equity holders or stockholders. Topic 3: Income Statement1. DefinitionAn income statement is a financial statement that reports a company's financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period.2. Utility of Income StatementAnalysts use the income statement for data to calculate financial ratios such as return on equity (ROE), return on assets (ROA), gross profit, operating profit, earnings before interest and taxes (EBIT), and earnings before interest taxes and amortization (EBITDA). The income statement is often presented in a common-sized format, which provides each line item on the income statement as a percent of sales. In this way, analysts can easily see which expenses make up the largest portion of sales. Analysts also use the income statement to compare year-over-year (YOY) and quarter-over-quarter (QOQ) performance. The income statement typically provides two to three years of historical data for comparison. Topic 4: Statement of Retained Earnings1. DefinitionA statement of retained earnings is a financial statement outlining the changes in retained earnings for a specified period. The statement is prepared in accordance with generally accepted accounting principles (GAAP). It reconciles the beginning and ending retained earnings for the period, using information such as net income from the other financial statements. 2. Retained EarningsRetained earnings refer to any profits made by an organization that it decides to keep for internal use. These funds may also be referred to as retained profit, accumulated earnings or accumulated retained earnings. Often, these retained funds are used to make payment on any debt obligations, or are reinvested into the company to promote growth and development. Topic 5: Statement of Cash Flows1. DefinitionA cash flow statement is one of the quarterly financial reports publicly traded companies are required to disclose to the public. The document provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given quarter.2. Cash Flows from OperationsThe first set of cash flow transactions is from operational business activities. Cash flows from operations start with net income and then reconcile all noncash items to cash items within business operations. 3. Cash Flows from InvestingCash flows from investing activities include cash spent on property, plant and equipment. This is where analysts look to find changes in capital expenditures (CAPEX). 4. Cash Flows from FinancingCash flows from financing is the last business activity detailed on the cash flow statement. The section provides an overview of cash used in business financing. Analysts use the cash flows from financing section to find the amount paid out in dividends or share buybacks.Topic 6: Notes and Other Disclosures1. Notes to Financial StatementsNotes to the financial statement present all such information which cannot be presented on the face of income statement, balance sheet, statement of cash flows and statement of changes in equity.Typical notes to the financial statement are:Ø An introduction of the business outlining its legal status, its country of incorporation and the name of its parents if any and a statement about the company's areas of business and its operations.Ø A summary of accounting policies related to revenue recognition, inventories, property, plant and equipment, financial instruments, etc.Ø A schedule of property plant and equipment showing the addition and deletion of assets, related movement in the accumulated depreciation account and book value.Ø A breakup of cost of sales, selling expenses and administrative expenses.Ø A detailed disclosure of different classes of financial instruments and their related risks.Ø A breakup of the gross amounts and present values of lease obligations of the business.Ø A detail of transactions with related parties.Ø A detail of contingencies that may affect the business in future, for example legal proceedings against the business.Ø A description of major events that occurred after the balance sheet date, etc.2. Management Discussion and AnalysisThe management discussion and analysis (MD&A) section presents managements views on the companys ability to pay near-term obligations, its ability to fund operations and expansion, and its results of operations. Management must highlight favorable or unfavorable trends and identify significant events and uncertainties that affect these three factors. This discussion obviously involves a number of subjective estimates and opinions.3. Auditors ReportAn auditors report is prepared by an independent outside auditor. It states the auditors opinion as to the fairness of the presentation of the financial position and results of operations and their conformance with generally accepted accounting principles. 小结1. Most of the contents of a business's balance sheet are classified under one of three categories: assets, liabilities, and equity. 2. Unlike the balance sheet, which covers one moment in time, the income statement provides performance information about a time period. It begins with sales and works down to net income and earnings per share (EPS).3.The statement of retained earnings is a financial document that includes information regarding a firms retained earnings, along with the net income that was directed to stockholders in the form of dividends. 4. There are two forms of accounting: cash and accrual. Most public companies use accrual accounting, which means the income statement in the annual report is not the same as the company's cash position. 。感谢您的支持与使用如果内容侵权请联系删除仅供教学交流使用