Financial Accounting, IFRS Edition Chapter 1 Accounting in Action Financial Accounting, IFRS Edition Weygandt Kimmel Kieso

Tujuan Pembelajaran Menjelaskan apa itu Akuntansi Mengidentifikasi pengguna dan kegunaan akuntansi Memahami mengapa etika merupakan konsep bisnis yang fundamental. Menjelaskan standart akuntansi dan prinsip pengukuran Menjelaskan asumsi unit moneter dan asumsi entitas ekonomi. Menyebutkan persamaan akuntansi, dan menjelaskan komponen-komponennya Menganalisis efek transaksi bisnis terhadap persamaan akuntansi Memahami keempat laporan keuangan dan bagaimana mempersiapkannya.

Accounting in Action What is Accounting? The Building Blocks of Accounting The Basic Accounting Equation Using the Accounting Equation Financial Statements Three activities Who uses accounting data? Ethics in financial reporting Accounting standards Assumptions Assets Liabilities Equity Transaction analysis Summary of transactions Income statement Retained earnings statement Statement of financial position Statement of cash flows

What is Accounting? The purpose of accounting: untuk identify, record, dan communicate kejadian ekonomi Mengorganisasikan Interested users. SO 1 Explain what accounting is.

What is Accounting? Three Activities The accounting process includes Illustration 1-1 The activities of the accounting process Three Activities The accounting process includes the bookkeeping function. SO 1 Explain what accounting is.

What is Accounting? Who Uses Accounting Data External Users Internal Users Human Resources Taxing Authorities Labor Unions Finance Management Customers Creditors Marketing Regulatory Agencies Investors SO 2 Identify the users and uses of accounting.

What is Accounting? Common Questions Asked User Human Resources 1. Mampukah kita memberikan kenaikan gaji bagi karyawan ? Human Resources 2. Apakah perusahaan memperoleh pendapatan yang memuaskan ? Investors Apakah perlu menghilangkan suatu lini produk ? Management 4. Apakah cash yang tersedia cukup untuk membayar deviden kepada para pemegang saham? Finance 5. Pada tingkat harga berapa produk kita akan dapat memaksimalkan keuntungan perusahaan? Marketing 6. Apakah perusahaan mampu membayar hutangnya Creditors SO 2 Identify the users and uses of accounting.

The Building Blocks of Accounting Ethics In Financial Reporting Standar perilaku yg menilai suatu tindakan benar atau salah, jujur atau tidak jujur, adil atau tidak adil dinamakan ETIKA (Ethics). Skandal keuangan terbaru termasuk didalamnya: Enron (USA), Parmalat (ITA), Satyam Computer Services (IND), AIG (USA), and others. Pelaporan keuangan yang efektif tergantung pada perilaku etis. SO 3 Understand why ethics is a fundamental business concept.

The Building Blocks of Accounting Ethics In Financial Reporting SO 3 Understand why ethics is a fundamental business concept.

Review Question The Building Blocks of Accounting Ethics are the standards of conduct by which one's actions are judged as: right or wrong. honest or dishonest. fair or not fair. all of these options. Ethics are the standards of conduct by which one's actions are judged as: right or wrong. honest or dishonest. fair or not fair. all of these options. Solution on notes page SO 3 Understand why ethics is a fundamental business concept.

The Building Blocks of Accounting Accounting Standards International Accounting Standards Board (IASB) http://www.iasb.org/ International Financial Reporting Standards (IFRS) Financial Accounting Standards Board (FASB) http://www.fasb.org/ Generally Accepted Accounting Principles (GAAP) SO 4 Explain accounting standards and the measurement principles.

The Building Blocks of Accounting Measurement Principles Cost Principle (Historical) – menyatakan bahwa perusahaan mencatatat aset pada cost’nya Issues: Dilaporkan pada saat aset dibeli dan pada saat aset diadakan. Cost mudah untuk diverifikasi sedangkan nilai pasar “market value” seringkali bersifat subjektif. Informasi atas harga wajar “Fair value” bisa jadi lebih berguna. SO 4 Explain accounting standards and the measurement principles.

The Building Blocks of Accounting Measurement Principles Fair Value Principle – bahwa aset dan kewajiban “liabilities” harus dilaporkan pada nilai wajarnya “fair value”. Hanya dalam situasi dimana aset aktif diperdagangkan, seperti investasi dalam sekuritas, maka prinsip wajarlah yang diterapkan. SO 4 Explain accounting standards and the measurement principles.

Forms of Business Ownership The Building Blocks of Accounting Assumptions Monetary Unit Assumption (Asumsi unit moneter) – termasuk pencatatan akuntansi hanya atas data transaksi yang dapat ditunjukkan dalam bentuk uang Economic Entity Assumption – mensyaratkan bahwa aktivitas entitas dilakukan secara terpisah dari kegiatan pemilik /owner dengan kegiatan entitas ekonomi lainnya. Proprietorship. Partnership. Corporation. Forms of Business Ownership SO 5 Explain the monetary unit assumption and the economic entity assumption.

Proprietorship (Perorangan) The Building Blocks of Accounting Proprietorship (Perorangan) Partnership Corporation Biasanya dimiliki oleh satu orang Seringkali merupakan bisnis jasa kecil Pemilik menerima keuntungan, menderita kerugian dan bertanggung jawab secra personal atas hutang Dimiliki 2 org atau lebih Jenis bisnis ; retail dan jasa Tanggung jawab pribadi terbatas Perjanjian kemitraan Kepemilikan terbagi atas saham Memiliki badan hukum Tanggung jawab terbatas

Review Question The Building Blocks of Accounting Combining the activities of Kellogg and General Mills would violate the cost principle. economic entity assumption. monetary unit assumption. ethics principle. Combining the activities of Kellogg and General Mills would violate the cost principle. economic entity assumption. monetary unit assumption. ethics principle. Solution on notes page SO 5 Explain the monetary unit assumption and the economic entity assumption.

Review Question The Building Blocks of Accounting A business organized as a separate legal entity under state law having ownership divided into shares is a proprietorship. partnership. corporation. sole proprietorship. A business organized as a separate legal entity under state law having ownership divided into shares is a proprietorship. partnership. corporation. sole proprietorship. Solution on notes page SO 5 Explain the monetary unit assumption and the economic entity assumption.

The Building Blocks of Accounting Indicate whether each of the following statements presented below is true or false. The three steps in the accounting process are identification, recording, and communication. The two most common types of external users are investors and company officers. Shareholders in a corporation enjoy limited legal liability as compared to partners in a partnership. True False True Solution on notes page SO 5 Explain the monetary unit assumption and the economic entity assumption.

The Building Blocks of Accounting Indicate whether each of the following statements presented below is true or false. The primary accounting standard-setting body outside the United States is the International Accounting Standards Board (IASB). The cost principle dictates that companies record assets at their cost. In later periods, however, the fair value of the asset must be used if fair value is higher than its cost. True False Solution on notes page SO 5 Explain the monetary unit assumption and the economic entity assumption.

The Basic Accounting Equation Assets Liabilities Equity = + Kerangka dasar untuk mencatat dan meringkas economic events. Berlaku terhadap semua entitas ekonomi tanpa memandang ukuran SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Assets Liabilities Equity = + Assets Sumber kekayaan perusahaan (SD yang dimiliki perusahaan) Memberikan manfaat masa yang akan datang Cash, Inventory, Equipment, etc. SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Assets Liabilities Equity = + Liabilities Klaim atas aset (debts “hutang” and obligations “kewajiban”). Creditors – pihak yang memberikan pinjaman uang Accounts payable, Notes payable, etc. SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Assets Liabilities Equity = + Equity Klaim kepemilikan atas total aset. Disebut sebagai residual equity. Share capital and retained earnings. SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Illustration 1-7 Revenues hasil dari kegiatan bisnis perusahaan dengan tujuan untuk memperoleh penghasilan Biasanya dihasilkan dari penjualan merchandise, menyediakan jasa, menyewakan property, dan meminjamkan uang. SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Illustration 1-7 Expenses biaya atas aset yang dikonsumsi atau jasa yang digunakan dalam proses memperoleh pendapatan Common expenses are salaries expense, rent expense, utilities expense, tax expense, etc. SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Illustration 1-7 Dividends pendistribusian cash atau aset yang lain kepada pemegang saham. Mengurangi retained earnings Bukan merupakan expense SO 6 State the accounting equation, and define its components.

The Basic Accounting Equation Classify the following items as issuance of shares, dividends, revenues, or expenses. Then indicate whether each item increases or decreases equity. Classification Effect on Equity Rent expense Service revenue Dividends Salaries expense Expense Decrease Revenue Increase Dividends Decrease Expense Decrease Solution on notes page SO 6 State the accounting equation, and define its components.

Using The Accounting Equation Transactions peristiwa bisnis ekonomi yang dicatat oleh akuntan Bisa dari external atau internal. Tidak semua kegiatan merupakan transaksi Setiap transaksi memiliki dual effect pada accounting equation. SO 7 Analyze the effects of business transactions on the accounting equation.

Discuss product design with customer. Using The Accounting Equation Illustration: Apakah kejadian – kejadian berikut dicatat dalam catatan akuntansi? Discuss product design with customer. Illustration 1-8 Purchase computer. Event Pay rent. Apakah posisi keuangan (assets, liabilities, or equity) perusahaan berubah? Criterion Record/ Don’t Record SO 7 Analyze the effects of business transactions on the accounting equation.

Using The Accounting Equation Transaction Analysis SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (1). Investment by Shareholders. Ray and Barbara Neal decides to open a computer programming service which he names Softbyte. On September 1, 2011, they invest $15,000 cash in exchange for capital shares. The effect of this transaction on the basic equation is: Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (2). Purchase of Equipment for Cash. Softbyte purchases computer equipment for $7,000 cash. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (3). Purchase of Supplies on Credit. Softbyte purchases for $1,600 from Acme Supply Company computer paper and other supplies expected to last several months. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (4). Services Provided for Cash. Softbyte receives $1,200 cash from customers for programming services it has provided. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (5). Purchase of Advertising on Credit. Softbyte receives a bill for $250 from the Daily News for advertising but postpones payment until a later date. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (6). Services Provided for Cash and Credit. Softbyte provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (7). Payment of Expenses. Softbyte pays the following Expenses in cash for September: store rent $600, salaries of employees $900, and utilities $200. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (8). Payment of Accounts Payable. Softbyte pays its $250 Daily News bill in cash. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (9). Receipt of Cash on Account. Softbyte receives $600 in cash from customers who had been billed for services [in Transaction (6)]. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Transaction (10). Dividends. The corporation pays a dividend of $1,300 in cash. Solution on notes page SO 7 Analyze the effects of business transactions on the accounting equation.

Transactions Analysis Summary of Transactions Illustration 1-10 Tabular summary of Softbyte transactions SO 7 Analyze the effects of business transactions on the accounting equation.

Financial Statements Perusahaan memyiapkan empat financial statements berdasarkan ringkasan data akuntansi: Income Statement Retained Earnings Statement Statement of Financial Position Statement of Cash Flows SO 8 Understand the four financial statements and how they are prepared.

Review Question Financial Statements Net income will result during a time period when: assets exceed liabilities. assets exceed revenues. expenses exceed revenues. revenues exceed expenses. Net income will result during a time period when: assets exceed liabilities. assets exceed revenues. expenses exceed revenues. revenues exceed expenses. Solution on notes page SO 8 Understand the four financial statements and how they are prepared.

Financial Statements Income Statement Reports the revenues and expenses for a specific period of time. Net income – revenues exceed expenses. Net loss – expenses exceed revenues. Illustration 1-11 Financial statements and their interrelationships SO 8 Understand the four financial statements and how they are prepared.

Financial Statements Net income is needed to determine the ending balance in retained earnings. Illustration 1-11 Financial statements and their interrelationships SO 8

Retained Earnings Statement Financial Statements Statement indicates the reasons why retained earnings has increased or decreased during the period. Illustration 1-11 Financial statements and their interrelationships SO 8 Understand the four financial statements and how they are prepared.

Financial Statements The ending balance in retained earnings is needed in preparing the statement of financial position Illustration 1-11 Financial statements and their interrelationships SO 8 Understand the four financial statements and how they are prepared.

Financial Statements Balance Sheet Illustration 1-11 Financial statements and their interrelationships SO 8 Understand the four financial statements and how they are prepared.

Financial Statements Illustration 1-11 Financial statements and their interrelationships

Financial Statements Statement of Cash Flows Information for a specific period of time. Answers the following: Where did cash come from? What was cash used for? What was the change in the cash balance? SO 8 Understand the four financial statements and how they are prepared.

Statement of Cash Flows Financial Statements Statement of Cash Flows Illustration 1-11 Financial statements and their interrelationships SO 8 Understand the four financial statements and how they are prepared.

Review Question Financial Statements Which of the following financial statements is prepared as of a specific date? Balance sheet. Income statement. Retained earnings statement. Statement of cash flows. Which of the following financial statements is prepared as of a specific date? Balance sheet. Income statement. Retained earnings statement. Statement of cash flows. Solution on notes page. SO 8 Understand the four financial statements and how they are prepared.

Understanding U.S. GAAP Key Differences Accounting in Action In 2002, the U.S. Congress issued the Sarbanes-Oxley Act (SOX), which mandated certain internal controls for large public companies listed on U.S. exchanges. Debate about international companies (non-U.S.) adopting SOX-type standards centers on whether the benefits exceed the costs. The concern is that the higher costs of SOX compliance are making the U.S. securities markets less competitive. Financial frauds have occurred at companies such as Satyam Computer Services (IND), Parmalat (ITA), and Royal Ahold (NLD). They have also occurred at large U.S. companies such as Enron, WorldCom, and AIG.

Understanding U.S. GAAP Key Differences Accounting in Action IFRS tends to be less detailed in its accounting and disclosure requirements than GAAP. This difference in approach has resulted in a debate about the merits of “principles-based” (IFRS) versus “rules-based” (GAAP) standards. U.S. regulators have recently eliminated the need for foreign companies that trade shares in U.S. markets to reconcile their accounting with GAAP. GAAP is based on a conceptual framework that is similar to that used to develop IFRS.

Understanding U.S. GAAP Key Differences Accounting in Action The three common forms of business organization that are presented in the chapter, proprietorships, partnerships, and corporations, are also found in the United States. Because the choice of business organization is influenced by factors such as legal environment, tax rates and regulations, and degree of entrepreneurism, the relative use of each form will vary across countries. Transaction analysis is basically the same under IFRS and GAAP but, as you will see in later chapters, the different standards may impact how transactions are recorded.

Understanding U.S. GAAP Looking to the Future Accounting in Action Both the IASB and the FASB are hard at work developing standards that will lead to the elimination of major differences in the way certain transactions are accounted for and reported. Consider, for example, that as a result of a joint project on the conceptual framework, the definitions of the most fundamental elements (assets, liabilities, equity, revenues, and expenses) may actually change. However, whether the IASB adopts internal control provisions similar to those in SOX remains to be seen.

Career Opportunities APPENDIX Public accounting Private accounting Government Forensic accounting “Show me the Money” SO 9 Explain the career opportunities in accounting.

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