英文版基础会计ifnj.pptx

Lesson 1Lesson 1Introduction To AccountingIntroduction To AccountingTask Team ofTask Team ofTask Team ofTask Team ofTask Team ofTask Team ofFUNDAMENTAL ACCOUNTINGFUNDAMENTAL ACCOUNTINGFUNDAMENTAL ACCOUNTINGFUNDAMENTAL ACCOUNTINGFUNDAMENTAL ACCOUNTINGFUNDAMENTAL ACCOUNTINGBusiness School,Sun Yat-sen UniversityBusiness School,Sun Yat-sen UniversityBusiness School,Sun Yat-sen UniversityBusiness School,Sun Yat-sen UniversityBusiness School,Sun Yat-sen UniversityBusiness School,Sun Yat-sen University11OutlineOutlinetThe nature of firm;tThe value of accounting;tThe Evolution of accounting;tAccounting:A bird view22Opening StoryOpening StorytEveryone here is supposed to know the Outlaws of the Marsh;tQuestion I:Who plays the role of“CFO”Who plays the role of“CFO”of the Marsh Mountain of the Marsh Mountain Liang?Liang?There are two;There are two;33Opening StoryOpening StorySome other positions related to accounting;44Opening StoryOpening StorytQuestion II:Question II:Why does the Marsh Why does the Marsh Mountaion Liang need Mountaion Liang need such positions as CFO and such positions as CFO and Chief Controller?Chief Controller?We must know that the We must know that the title of SHUIHUZHUAN is title of SHUIHUZHUAN is also translated as also translated as All Men All Men are Brothers.are Brothers.55The Value of AccountingThe Value of AccountingtWhy does accounting exist in every Why does accounting exist in every organization?organization?tI explain this question in another way:I explain this question in another way:what kind of unique value does what kind of unique value does accounting possess?accounting possess?The value must be fundamental and the The value must be fundamental and the society could not go without;society could not go without;tAnother way to explain:Darwinism;Another way to explain:Darwinism;Natural selection and the fittest survive;Natural selection and the fittest survive;66The Nature of FirmThe Nature of FirmtAlthough every organization needs accounting,we just talk about enterprise accounting for simplicity;tWhat is the nature of firm?tWe discuss about human nature first;77The Nature of ManThe Nature of MantEthic Man;Human Nature:Virtue vs.Evil;Human Nature:Virtue vs.Evil;Confucis vs.Confucis vs.Hsun Tzu Hsun Tzu tEconomic Man;There is no ethics concept in There is no ethics concept in Economists dictionary;Economists dictionary;It is not from the benevolence of the butcher,It is not from the benevolence of the butcher,the brewer,or the baker that expect our the brewer,or the baker that expect our dinner,but from their regards their own dinner,but from their regards their own interest.(Adam Smith);interest.(Adam Smith);88The Nature of ManThe Nature of MantWe need a compound analytical tool;We need a compound analytical tool;Maslow and the Hierarchy of Needs:the most Maslow and the Hierarchy of Needs:the most common tool;common tool;tMichael Jensen and William MecklingMichael Jensen and William Meckling REMMREMMResourceful,Resourceful,Evaluator,Evaluator,Maximizer,Maximizer,Model.Model.99The Nature of FirmThe Nature of FirmtClassical theories;A device to capture transaction costs;A device to capture transaction costs;A nexus of contracts;A nexus of contracts;Agency theory;Agency theory;Economic Darwinism;Economic Darwinism;,tREMM perspective:A coalition of economic men;A coalition of economic men;1010The Nature of FirmThe Nature of FirmtOn the coalition of economic men:tWhy does REMM join a firm?Maximization of his own interests;Maximization of his own interests;tWhen does REMM quit from a firm?Seek different chance to maximize his own Seek different chance to maximize his own interests;interests;tWhen we define human being as REMM,we have to solve the fundamental issue:How does REMM trust each other?How does REMM trust each other?1111The Value of AccountingThe Value of AccountingtWithout trust,we could not have even a family,let alone a firm;911 and the increase of trusting cost;911 and the increase of trusting cost;tREMMs have to find efficient ways to develop and maintain trust;They know that they have to;They know that they have to;The problem is how;The problem is how;1212The Value of AccountingThe Value of AccountingtHistorically,REMMs have created and Historically,REMMs have created and experimented numerous ways;experimented numerous ways;Accounting is proven to be cost-effective;Accounting is proven to be cost-effective;It is suitable to all kinds of firms,It is suitable to all kinds of firms,No matter of their size,No matter of their size,No matter of the geographic locations;No matter of the geographic locations;No matter of ownership;No matter of ownership;1313The Evolution of AccountingThe Evolution of AccountingtNow that accounting is connected with Now that accounting is connected with human nature and trusting issue,we human nature and trusting issue,we may trace the history of accounting to may trace the history of accounting to the early days of human beings,or the early days of human beings,or Primitive SocietyPrimitive Society;the Incas and Quipu;the Incas and Quipu;1414 tSumer and CUNEIFORM tPhoenician and ALPHABET1515The Evolution of AccountingThe Evolution of AccountingtWhy do our ancestors invent Alphabet?Why do our ancestors invent Alphabet?To build trusting via enhanced memory;To build trusting via enhanced memory;This is the right value of Accounting.This is the right value of Accounting.tChronology of spelling by Chronology of spelling by Steve BettSteve Bett;3200 BC Writing developed as an extension of the 3200 BC Writing developed as an extension of the accounting system in Babylon;accounting system in Babylon;tA British accounting scholar claimed:A British accounting scholar claimed:Phoenician invented Phoenician invented ALPHABETALPHABETfor the sake of accounting.for the sake of accounting.1616The Evolution of AccountingThe Evolution of AccountingtThe primitive stage of accounting;A tool to help to maintain the trusts;A tool to help to maintain the trusts;Alphabet,numeric and organizational Alphabet,numeric and organizational control;control;1717The Evolution of AccountingThe Evolution of AccountingtThe birth of double-entry bookkeeping;A.C.Littleton on the birth of DEB;A.C.Littleton on the birth of DEB;tAnother storyThe Crusaders(1095-1270);The Crusaders(1095-1270);Italian commodity economy,developed bank Italian commodity economy,developed bank business;business;t DEB:the symbol of accounting science;1818The Evolution of AccountingThe Evolution of AccountingtFrom Bookkeeping to Financial AccountingCapital market:accounting information is Capital market:accounting information is widely circulated;widely circulated;The most common users:outside of the The most common users:outside of the reporting entity;reporting entity;GAAP:the symbol of the conversion;GAAP:the symbol of the conversion;tFinancial Accounting is also called External Accounting;1919The Evolution of AccountingThe Evolution of AccountingtIndustrial revolution and modern mass manufacturing process;Business profiting model is changed;Business profiting model is changed;Originally,buy low,sell high;Originally,buy low,sell high;Now,buy raw materials,manufacture into products Now,buy raw materials,manufacture into products and sell out;and sell out;The determination of the cost of manufactured The determination of the cost of manufactured products is essential in profit determination;products is essential in profit determination;Cost AccountingCost Accounting is“invented”;is“invented”;2020The Evolution of AccountingThe Evolution of AccountingtFrom cost accounting to management accounting;More complicated business activities;More complicated business activities;Dynamic and keep-changing environment;Dynamic and keep-changing environment;Much larger business scale;Much larger business scale;tDecision making:much more complicated;tManagement Accounting is“invented”;2121The Evolution of AccountingThe Evolution of AccountingtFrom commodity market to capital market;tThe developing of capital market raises two issues:Effective ways to raise and allocate capital;Effective ways to raise and allocate capital;Trust crisis;Trust crisis;t We have Corporate Finance and Auditing subjects respectively.2222Accounting Accounting FirmsFirmsFirmFirmFinancial statementsFinancial statementsinvestorsFinancial Financial Financial Financial AccountingAccountingAccountingAccountingAuditingAuditingAuditingAuditingF F F FinanceinanceinanceinanceManagement Management Management Management AccountingAccountingAccountingAccountingCorporate Finance and AuditingCorporate Finance and Auditing2323The Evolution of AccountingThe Evolution of AccountingtAccounting will evolve with the development of economy and technology;The invention of computer and its adoption The invention of computer and its adoption into accounting practice;into accounting practice;Reduces time,effort and cost of Reduces time,effort and cost of record-keeping;record-keeping;Improves clerical accuracy;Improves clerical accuracy;Changes the way we store,process and Changes the way we store,process and summarize large masses of data;summarize large masses of data;2424The Evolution of AccountingThe Evolution of Accounting Website and Internet;Website and Internet;dissemination of accounting information:dissemination of accounting information:easy and no increment cost;easy and no increment cost;Internet based financial reporting system;Internet based financial reporting system;Extensible Business Reporting Language(XBRL)was Extensible Business Reporting Language(XBRL)was developed to provide users with an efficient and effective developed to provide users with an efficient and effective means of preparing and exchanging financial information means of preparing and exchanging financial information over the Internet.over the Internet.Extensible Assurance Reporting Language(XARL)was Extensible Assurance Reporting Language(XARL)was designed to enable assurance providers to report on the designed to enable assurance providers to report on the integrity of information distributed over the Internet and integrity of information distributed over the Internet and help users and companies place warranted reliance on such help users and companies place warranted reliance on such information information Events accounting:may be re-introduced under Events accounting:may be re-introduced under internet environment;internet environment;2525The Evolution of AccountingThe Evolution of AccountingtSOX and its impact on accounting;Enron filed for bankruptcy protect in Enron filed for bankruptcy protect in December 3,2001;December 3,2001;WorldCom reported billions of false profit in WorldCom reported billions of false profit in June,2002;June,2002;Sarbanes-Oxley Act of 2002 was signed by Sarbanes-Oxley Act of 2002 was signed by President Bush and becamePresident Bush and becamea law in June 30,2002;a law in June 30,2002;It mainly focuses on accounting;It mainly focuses on accounting;2626The Boundary of AccountingThe Boundary of AccountingtAccounting:a boundless discipline;tWhat should accountants supposed to do?For instance,the job description of CFO;For instance,the job description of CFO;The job description of chief controller;The job description of chief controller;No definite definition;No definite definition;No generally accepted principles;No generally accepted principles;2727What should we do?What should we do?t郭靖郭靖郭靖郭靖纵身离开北斗星位，抢到纵身离开北斗星位，抢到纵身离开北斗星位，抢到纵身离开北斗星位，抢到“天璇天璇天璇天璇”。他。他。他。他此时武此时武此时武此时武 功已胜全真诸子，兼之精通阵法奥妙，一功已胜全真诸子，兼之精通阵法奥妙，一功已胜全真诸子，兼之精通阵法奥妙，一功已胜全真诸子，兼之精通阵法奥妙，一加推动，阵势威力大增。北斗阵本以加推动，阵势威力大增。北斗阵本以加推动，阵势威力大增。北斗阵本以加推动，阵势威力大增。北斗阵本以“天天天天 权权权权”为为为为主，但他一入阵，枢纽移至主，但他一入阵，枢纽移至主，但他一入阵，枢纽移至主，但他一入阵，枢纽移至“天璇天璇天璇天璇”，阵法立时，阵法立时，阵法立时，阵法立时变幻。变幻。变幻。变幻。The implication to us!The implication to us!2828tYou may use knowledge freely as soon as you find the underlying regularity;2929SummarySummarytThe nature of firm:contemporary interest The nature of firm:contemporary interest coalition of REMM;coalition of REMM;tREMMs have to find cost-effective ways to build REMMs have to find cost-effective ways to build trust;trust;tAccounting is proven cheap and reliable;Accounting is proven cheap and reliable;tAccounting is evolving with economy and Accounting is evolving with economy and technology,etc;technology,etc;Four main branches:Financial accounting,Four main branches:Financial accounting,management accounting,corporate financemanagement accounting,corporate financeand auditing;and auditing;Computer and internet:already changedComputer and internet:already changedaccounting significantly;accounting significantly;3030Case for open discussionCase for open discussiontCollect relevant comments and news reports on Collect relevant comments and news reports on the financial fraud of Shanghai listed company the financial fraud of Shanghai listed company Hongguang Industrial(600083),especially the first Hongguang Industrial(600083),especially the first lawsuit filed by Ms.Jiang from Shanghai.lawsuit filed by Ms.Jiang from Shanghai.tRequirements:Requirements:Is the suit filed by Ms.Jiang merit or meritless?Is the suit filed by Ms.Jiang merit or meritless?Is the rejection by local court reasonable or not?Why?Is the rejection by local court reasonable or not?Why?Suppose that Ms.Jiang had won the case,what kind of Suppose that Ms.Jiang had won the case,what kind of consequences are expected?consequences are expected?3131The End of Lesson 1The End of Lesson 13232