实用的会计英语（2012年注册会计师英语）(2)

Full disclosure is a general concept that refers to reporting all known information about a company’s finances that would be of sufficient materiality to influence the decisions of a reasonable and informed user. The information should also meet a cost-benefit constraint （成本收益的约束）.

（IV）A complete set of financial statements comprises A statement of financial position A statement of comprehensive income

A statement of cash flows

Notes 报表附注, comprising a summary of significant accounting policies and other explanatory information

（V）Underlying assumptions

Accrual basis：accrual accounting recognizes, or records in the general ledger, revenue when it is realized 实现or realizable 可实现and when it is earned 获得; accrual accounting recognizes expenses in the period in which they are incurred 发生rather than when the cash is actually paid. （VI）Qualitative characteristics

Understandability: The information should be in a form that is understandable by user groups. Relevance: The information influences the economic decisions of users by helping them evaluate past, present or future events or confirming, or correcting their past evaluations.

Reliability: The information is free from material error and bias and can depended upon by users. Substance over form: It requires transactions must be accounted for according to their commercial substance rather than their legal form.

Neutrality: the information is free from bias.

Prudence: Prudence is the exercise of a degree of caution in making estimates in matters of uncertainty, such that assets or income are not overstated and liabilities or expenses are not understated. Such uncertainty may be the collectability of doubtful receivables, the probable useful life of plant and equipment and the number of warranty claims that may occur. However prudence cannot be used to deliberately understate profit or create excessive provisions (this would break the neutrality principle).

Completeness: To be reliable, the information in financial statements must be complete within the restrictions of materiality and cost. An omission can cause information to be misleading.

Comparability: Accounts should be comparable with those of other similar companies, and from one period to the next.

Consistency

Disclosure of accounting policies

Unit 2 Financial Statement Elements-Assets

Financial asset

IAS 39 classifies financial assets under the following categories:

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Financial assets at fair value through profit or loss （以公允价值计量且其变动计入当期损益的金融资产）: these are held for trading or elected to be classified in this category. Derivatives are always classified as held for trading unless they are effective hedges （有效套期）. Financial assets held for trading 交易性金融资产 Derivatives 衍生工具

On the balance sheet at fair value with gains and losses immediately recognized through profit and loss account.

Held-to-maturity investments（持有至到期投资）: are financial assets with fixed or determinable payments and fixed maturity（到期） that an entity has the positive intent and ability to hold to maturity.

Loans and receivables: 贷款和应收款项

Both held to maturity investments and loans and receivables are carried at amortized cost using the effective interest method （实际利率法下的摊余成本）.

Available-for-sale financial assets （可供出售的金融资产）: are any financial assets designated as such or that do not fall into any of the three categories above.

Available-for-sale financial assets are carried at fair value with gains and losses recognized directly in equity but recycled to income on disposal （处置时要将公允价值累计变动额从所有者权益中转出，重新计入当期损益）. Illustration: (1) A company invests $5,000 in 10% debentures. The debentures are repayable at a premium after 3 years. The effective rate of interest is 12%. What amounts will be shown in Income Statement and Balance Sheet for year 1-3?

(2) A company invested in 10,000 shares of a listed company in 11/20x7 at a cost of $ 4.2 per share. At 31/12/2007, the s hares have a market value of $ 4.9. The company are planning on selling these shares in 2008/4.

Prepare extracts from Income Statement for 31/12/20x7 and Balance Sheet at that date.

(3) A company invested in 10,000 shares of a listed company in 10/20x7 at a cost of 4.9 per share. At 31/12/2007, the shares have a market value of $ 4.2. The company are not planning on selling these shares in the short term. Prepare extracts from Income Statement for 31/12/20x7 and Balance Sheet at that date. Solution: (1) Assumed held to maturity-amortized cost Income Statement Investment income

1 2 3 625

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600 612

Balance Sheet :

1

2

3

Non-current asset : Investment: Working Year b/f 1 2 3

(2) This is a fair value through profit or loss asset as it is held for sale in the short term. Change in value recognized in Income Statement. Income Statement :

Investment income ( 10,000 x (4.9-4.2)) Balance Sheet : Current Assets:

Investment (10,000 x 4.9)

49,000

7,000

investment inc12%

600 612 625

Cash received 10%

(500) (500) (500)

c/f

5,100 5,212 0

5,100 5,212

0

5,000 5,100 5,212

(5,337)

(3) This is an available for sale investment. Income Statement: Investment income: Balance Sheet : Non-current asset: 10,000 x 4.2 …… 此处隐藏：6056字，全部文档内容请下载后查看。喜欢就下载吧 ……