会计学企业决策的基础14版12解析课件.ppt

1、 The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinINCOME AND CHANGES IN RETAINED EARNINGSChapter12 The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO1To describe how irregular income items,such as discontinued operations and extraordinary items,are presented in the income st

2、atement.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIncome from continuing operations.1.Results of discontinued operations.2.Impact of extraordinary items.3.Effects of changes in accounting principles.Normal,recurring revenue and expense transactions.Unusual,nonrecurring events that affect n

3、et income.Reporting the Results of Operations The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinThis tax expense does not include effects of unusual,nonrecurring items.These unusual,nonrecurring items are each reported net of taxes.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIncome/Loss fr

4、om operating the segment prior to disposal.Income/Loss on disposal of the segment.When management enters into a formal plan to sell or discontinue a segment of the business,the related gains and losses must be disclosed on the income statement.Discontinued OperationsDiscontinued Operations The McGra

5、w-Hill Companies,Inc.,2008McGraw-Hill/IrwinA segment must be a separate line of business activity or an operation that services a distinct category of customers.Discontinued OperationsWhen management enters into a formal plan to sell or discontinue a segment of the business,the related gains and los

6、ses must be disclosed on the income statement.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinDiscontinued Operations The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinDiscontinued Operations The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIncome Statement Presentation:Discontinued Operati

7、ons The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinExtraordinary Items The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinExtraordinary Items The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIncome Statement Presentation:Extraordinary Items-Example The McGraw-Hill Companies,Inc.,2008McGraw-

8、Hill/Irwin The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO2To compute earnings per share.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinA measure of the companys profitability and earning power for the period.Based on the number of shares issued and the length of time t

9、hat number remained unchanged.Earnings Per Share(EPS)The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinEarnings Per Share(EPS)The McGraw-Hill Companies,Inc.,2008McGraw-Hill/Irwin*Rounded.Earnings Per Share(EPS)The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIf preferred stock is present,subtra

10、ct preferred dividends from net income prior to computing EPS.EPS is required to be reported in the income statement.Earnings Per Share(EPS)Net Income-Preferred DividendsWeighted Average Number of Common Shares OutstandingEarnings Per Share=The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearnin

11、g ObjectiveLO3To distinguish between basic and diluted earnings per share.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinBasic and Diluted Earnings per Share The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinOften,the Price-Earnings Ratio is used to evaluate the reasonableness of a companys s

12、tock price.Price-earnings Ratio(P/E)Lets examine this further.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO4To account for cash dividends and stock dividends,and explain the effects of these transactions on a companys financial statements.The McGraw-Hill Companies,Inc.,200

13、8McGraw-Hill/IrwinDeclared by Board of Directors.Not legally required.Creates liability at declaration.Requires sufficient Retained Earnings and Cash.Accounting for Cash Dividends The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinDate of DeclarationBoard of Directors declares the dividend.Record a

14、 liability.DateDescriptionDebitCreditMar.1 Retained Earnings500,000 Dividends Payable500,000 Dividend DatesOn March 1,2007,the Board of Directors of Matrix,Inc.declares a$1.00 per share cash dividend on its 500,000 common shares outstanding.The dividend is payable to stockholders of record on April

15、1,and paid on May 1.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinEx-Dividend DateThe day which serves as the ownership cut-off point for the receipt of the most recently declared dividend.DateDescriptionDebitCreditApr.1NO ENTRYDividend Dates The McGraw-Hill Companies,Inc.,2008McGraw-Hill/Irwi

16、nDate of RecordStockholders holding shares on this date will receive the dividend.(No entry)Dividend DatesXApril 2007 The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinDate of PaymentRecord the payment of the dividend to stockholders.DateDescriptionDebitCreditMay 1 Dividends Payable500,000 Cash500

17、,000 Dividend Dates The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinOn June 1,2007,a corporations board of directors declared a dividend for the 2,500 shares of its$100 par value,8%preferred stock.The dividend will be paid on July 15.Which of the following will be included in the July 15 entry?a

18、.Debit Retained Earnings$20,000.b.Debit Dividends Payable$20,000.c.Credit Dividends Payable$20,000.d.Credit Preferred Stock$20,000.$100 8%=$8 dividend per share$8 2,500=$20,000 total dividendDividend Dates The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinAll stockholders retain same percentage ow

19、nership.No change in total stockholders equity.No change in par values.Accounting for Stock DividendsDistribution of additional shares of stock to stockholders.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinSummary of Effects of Stock Dividends and Stock Splits The McGraw-Hill Companies,Inc.,20

20、08McGraw-Hill/IrwinLearning ObjectiveLO5To describe and prepare a statement of retained earnings.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinStatement of Retained Earnings with Prior Period Adjustment The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinRestrictions of Retained EarningsLoan a

21、greements can include restrictions on paying dividends below a certain amount of retained earnings.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO6To define prior period adjustments,and explain how they are presented in financial statements.The McGraw-Hill Companies,Inc.,200

22、8McGraw-Hill/IrwinAdjust retained earnings retroactively.The adjustment should be disclosed net of any taxes.The correction of an error identified as affecting net income in a prior period.Prior Period Adjustments The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO7To define com

23、prehensive income,and explain how it differs from net income.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinIssuance of new shares of stock.Net Income or Net LossPayment of DividendsGAAP excludes some unrealized items from income,such as the change in market value of available-for-sale debt and

24、 equity investments.Comprehensive IncomeNormally,there are 3 ways that financial position can change.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinAs a second Income Statement.Combined with Net Income on the Income Statement.As an element of Stockholders Equity.Comprehensive IncomeGAAP require

25、s that unrealized items that are normally reported on the balance sheet be added back to compute“Comprehensive Income.”The accumulated amount of changes affecting Comprehensive Income is reported in equity.There are 3 options for reporting Comprehensive Income.The McGraw-Hill Companies,Inc.,2008McGr

26、aw-Hill/IrwinLearning ObjectiveLO8To describe and prepare a statement of stockholders equity and the stockholders equity section of the balance sheet.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinStatement of Stockholders EquityThis is a more inclusive statement thanthe statement of retained e

27、arnings.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinStockholders Equity Section of the Balance Sheet The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinLearning ObjectiveLO9To illustrate steps management might take to improve the appearance of the companys net income.The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinImproving the Appearance of Income The McGraw-Hill Companies,Inc.,2008McGraw-Hill/IrwinEnd of Chapter 12