收藏家 J‘s Collection

Financial reporting 的目标
1.equity investors: 寻找长期投资目标，盈利能力，增长机会和付息能力
2.short term creditors:研究liquidity of business
3.long term creditors:长期目标和盈利能力

FR的用户，investors-debt and equity, govenment-taxes and regulators, others-public,special interest group,workforce etc

Accrual Accounting principles
1.Going concern
2.Recognition
3.Prudence
4.Histonic cost
5.Matching

Accounting characteristics
1.Comparability and consistency
2.Materiality
3.Conservatism
4.Full disclosure
5.cost/benifit

Accrual Accounting
1.revenues are recorded when earned regardless of cash collection
2.expenses are recorded when incurred regardless of cash payment
3.Matching principle, report expenses in the income statement in the same period as revenues that were earned as a result of those expenses

Accounting information的质量
understandability
usefullness, relevance -disicion making, reliability – credible/verifiable

Statement of financial accounting concepts 2 (SFAC)
Relevance , 影响决策的信息
Timeliness, 信息瞬间失去意义，最好可以forecasting
Reliability,verifiable and representational faithfulness
Consistency, same accounting principle consistency applied over time
Comparability, 不同公司间对比。
Materiality, 重要的数据

Contents of stockholders report
1.Management discussion and analysis(MD&A)
2.Balance sheet
3.Income statement
4.statement of stockholders’ equity
5.statement of cash flows
6.statement of comprehensive income
7.auditor’s report
8.explanatory notes
9.supplementary information

Contents of MD&A
1.results of operations + discussion of trends
2.Capital resources and liquidity + trends in cash flows
3.Gerenral business overview based on known trends
4.effects of known trends, events and uncertainties
5.discountinued operations, extraordinary items, ununsual items
6.disclosures in interim financial statements
7.segmental cash flow requirements and contributions

Balance sheet

Current asset= Cash + account receivable + inventory + trading securities + prepaid expences
within one year

Long-term asset=available-for-sale securities +ｈeld-to-maturitysecurities+investments in companies+Gross PP&E+ less accumulated depreciation+ intangible assets

Current liabilities=account payable + tax payable + dividends payable+current portion long-term debt

Long-term liabilities = bond payable + mortgage payable+ deferred taxes

Equity=preferred stock + common stock + additional paid-in-capital + contributed capital+retained earnings

Income statement
Net sales – cost of good sold = gross profit
gross profit – SG&A expense – depreciation = EBIT
EBIT – interest expense = EBT
EBT – taxes = Net income

Stock holders equity
Beginning stockholders’ equity +-net income + sales of common stock + additional paid in capital – preferred stock dividends – common stock dividends= ending retained earnings

Preferred stock: disclosure – dividends(fixed, floating, participating) call provisions, conversion privileges; if redeemable by holders,reclassify after liabilities

Common stock: each class reported separately, recorded at par value, treasury stock contra for repurchases

Additional paid in capital:普通股溢价发行，超过部分记做additional paid in capital

Other items: minimum liability adjustment (pensions), forex gains and losses under the all-current method, market valuation adjustment(available-for-sale securies), unearned shares issued to employee stock ownership plans(ESOPs)

Statement of Cash Flows
+-cash from operations
+-cash from investing
+-cash from financing
= ΔCash
+beginning cash balance
=ending cash

Statement of comprehensive income
Net income
cumulative translation adjustment
minimum pension liability
unrealized gains/losses on available-for-sale securities
deferred gain and losses on cash flow hedges

Footnotes
提供信息关于accounting methods/assumptions/ estimates, Audited, 提供其他信息关于depreciation method, inventory valuation methods, leasing arrangements, deferred tax details, 未列于FS但相关或者重要数据。

Proxy statements
在company meeting前，发给所有股东，解释需要股东投票的proposal， 包括management remuneration, stock options, special deals and related party transactions, 也detail any change of auditor

Common-sized statement
1.normalize balance sheet and income statement to facilitate comparison of different-sized firms
2.Common-sized balance sheets express all balance sheet accounts as a percentage of total asssets
3.Common-sized income statement express all income statement items as a percentage of sales

Auditor report， independent review of the company’s financial statements, true and fair
unqualified opinion VS qualified opinion, uncertainties
Contents: responsibility of management to prepare statements, independence of auditors, properly prepared in accordance with relevant GAAP, free from material misstatement, accounting priciples and estimates chosen are reasonable

Income statement format
Revenues from the sales of goods and services
+other income and revenues
-operating expenses
-financing costs
+-unusual or infrequent items
=pretax earning from continuing operations

-income tax expense
=net income from continuing operations

+- income from discontinued operations
+-extraordinary items
+-cumulative effect of accounting changes
=Net incom