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Financial Accounting and Accounting Standards PowerPoint Presentation
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Financial Accounting and Accounting Standards

Financial Accounting and Accounting Standards

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Financial Accounting and Accounting Standards

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    3. Explain a current liability and identify the major types of current liabilities. Describe the accounting for notes payable. Explain the accounting for other current liabilities. Identify the types of bonds. Prepare the entries for the issuance of bonds and interest expense. Describe the entries when bonds are redeemed. Identify the requirements for the financial statement presentation and analysis of liabilities. Apply the straight-line method of amortizing bond discount and bond premium. Apply the effecive-interest method of amortizing bond discount and bond premium. Describe the accounting for long-term notes payable. Study Objectives 1. On the topic, Challenges Facing Financial Accounting, what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a companys know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information) 1. On the topic, Challenges Facing Financial Accounting, what did the AICPA Special Committee on Financial Reporting suggest should be included in future financial statements? Non-financial Measurements (customer satisfaction indexes, backlog information, and reject rates on goods purchases). Forward-looking Information Soft Assets (a companys know-how, market dominance, marketing setup, well-trained employees, and brand image). Timeliness (no real time financial information)

    4. Service Cost - Actuaries compute service cost as the present value of the new benefits earned by employees during the year. Future salary levels considered in calculation. Interest on Liability - Interest accrues each year on the PBO just as it does on any discounted debt. Actual Return on Plan Assets - Increase in pension funds from interest, dividends, and realized and unrealized changes in the fair market value of the plan assets. Amortization of Unrecognized Prior Service Cost - The cost of providing retroactive benefits is allocated to pension expense in the future, specifically to the remaining service-years of the affected employees. Gain or Loss - Volatility in pension expense can be caused by sudden and large changes in the market value of plan assets and by changes in the projected benefit obligation. Two items comprise the gain or loss: difference between the actual return and the expected return on plan assets and, amortization of the unrecognized net gain or loss from previous periodsService Cost - Actuaries compute service cost as the present value of the new benefits earned by employees during the year. Future salary levels considered in calculation. Interest on Liability - Interest accrues each year on the PBO just as it does on any discounted debt. Actual Return on Plan Assets - Increase in pension funds from interest, dividends, and realized and unrealized changes in the fair market value of the plan assets. Amortization of Unrecognized Prior Service Cost - The cost of providing retroactive benefits is allocated to pension expense in the future, specifically to the remaining service-years of the affected employees. Gain or Loss - Volatility in pension expense can be caused by sudden and large changes in the market value of plan assets and by changes in the projected benefit obligation. Two items comprise the gain or loss: difference between the actual return and the expected return on plan assets and, amortization of the unrecognized net gain or loss from previous periods

    5. Current Liabilities

    6. Current Liabilities

    7. Current Liabilities

    8. Current Liabilities

    9. Current Liabilities

    10. Current Liabilities

    11. Current Liabilities

    12. Current Liabilities

    13. Current Liabilities

    14. Current Liabilities

    15. Current Liabilities

    16. Current Liabilities

    17. Current Liabilities

    18. Current Liabilities

    19. Current Liabilities

    20. Current Liabilities

    21. Current Liabilities

    22. Bond: Long-Term Liabilities

    23. Bond: Long-Term Liabilities

    25. Bond: Long-Term Liabilities

    26. Bond: Long-Term Liabilities

    27. Bond: Long-Term Liabilities

    28. Bond: Long-Term Liabilities

    29. Accounting for Bond Issues

    30. Accounting for Bond Issues

    33. Accounting for Bond Issues

    34. Accounting for Bond Issues

    64. Long-Term Notes Payable

    65. Long-Term Notes Payable

    66. Long-Term Notes Payable

    67. Long-Term Notes Payable

    68. Copyright