1、Accounting English Why do you take the course of Accounting English?What are the learning objectives of Accounting English?Is Accounting English difficult?Suggestions for study Previewing the text is very important.An English Chinese Dictionary of Accounting，英汉双解财会词典英汉双解财会词典，外语教学与研究出版社，外语教学与研究出版社，英英
2、 P.H.Collin,Adrian Joliffe 编，张炜等译，编，张炜等译，2002年年9月月第第1版版CHAPTER 1ACCOUNTING:THE BASIS FOR DECISIONSLearning Objectives Explain the definition of accounting;Understand the basic function of accounting;Ascertain the users of accounting information and know why they need the information;Understand the t
3、ypes of accounting information;Have a general idea of the professional fields of accounting and their duties.Learn the accounting terms in this chapter and use them in the translation task.Accounting 会计（学）会计（学）Accountant 会计师会计师 Bean Counter 数豆子的人数豆子的人 Different expressions about“企业企业”in English Busi
4、nessEnterpriseFirm Company Corporation Definition of Accounting Accounting is an information system designed to record,classify and summarize systematically significant financial and other economic information about business firms,and analyses and interprets its results,with monetary unit as its mai
5、n criterion.Accounting:Information for Decision Making The primary objective of accounting to provide information that is useful for making decisions.Users of Accounting InformationExternal usersInternal usersUsers of Accounting InformationInternal users of accounting information Question:How to def
6、ine internal users of accounting information?Who are internal users of accounting information?Which decisions made by the management？Internal users of accounting information Owe 欠债欠债 Owe to sb.欠某人的债欠某人的债 Meet=pay off 偿还偿还 Mature=be due v.到期到期 Maturity n.到期到期 Inventory=stock 存货存货 Expense 费用费用 Revenue
7、 收入收入 Earnings=profits 利润利润 Plant 工厂，植物，机器设备工厂，植物，机器设备Internal users of accounting information Question:Which decisions are to be made by internal users except for management?External users of accounting information Question:How to define external users of accounting information?Who are external use
8、rs of accounting information?Could the accountant provide accounting information to meet the needs of diverse users?Who are the two primary external users of accounting information?External users of accounting information 课后自学课后自学P7第第1段段 Question:Which decisions are to be made by external users?Obje
9、ctive of External Financial Reporting What is the objective of external financial reporting?Operation performance 经营成果经营成果 Financial position 财务状况财务状况 Cash flow 现金流现金流 Return of investment 投资回收投资回收 Return on investment 投资回报投资回报 课后自学课后自学P8第第2和第和第4段段 练习：练习：P13 Exercises 1Types of accounting informatio
10、n Financial Accounting Management Accounting Tax AccountingFinancial Accounting Financial accounting information describes the financial position(财务状况财务状况),result of operation(经营成果经营成果),and cash flow(现金流现金流)of an economic entity.Question:Who use the financial accounting information?Income tax return
11、s 纳税申报纳税申报 Prepare income tax returns编制纳税申报编制纳税申报 General-purpose accounting information 通用会计通用会计信息信息 Management Accounting Question:Whats the purpose of management accounting?课后自学课后自学P5第第5段段Tax Accounting Question:What functions does tax accounting encompass?Confirm to/with 与与相一致相一致 Minimize the ta
12、x burden 使税负最小化使税负最小化 private accountingpublic accounting accounting for governments and nonprofit organizationsPublic Accounting CPA(Certified Public Accountants)CPA firm 普华永道普华永道(Price Waterhouse Coopers，PwC)安永安永(Ernst&Young，E&Y)毕马威毕马威(KPMG)德勤德勤(Deloitte Touche Tohmatsu，DTT)安达信安达信(Arthur Andersen)
13、(已倒闭已倒闭)Enron ACCA(Association of Chartered Certificated Accountants)http:/ AICPA(American Institute of CPA)http:/www.aicpa.org CICPA(Chinese Institute of CPA)http:/ practicing members non-practicing members Auditing 审计，审计学审计，审计学Audit Internal/external auditing AuditorThe primary services offered by
14、 CPA Auditing Income tax services Management advisory(consultancy or consulting)servicesPrivate Accounting Management accountants 管理会计师管理会计师 The Institute of Management Accountants（美国管理会计师协会美国管理会计师协会，简称，简称IMA）Certified Management Accountant(美国注册美国注册管理会计师，简称管理会计师，简称CMA)Controller 总会计师，会计主管总会计师，会计主管 T
15、reasurer 财务主管财务主管 CFO What are the responsibilities of accountants at the private business?The responsibilities of accountants at the private business Recording transactions and preparing financial statements Design of accounting system Cost accounting Internal control and auditingAccounting for Gov
16、ernments and Nonprofit OrganizationsAccounting Ethic Accountants have a significant responsibility to the public.Why?Ethics are beliefs that distinguish right from wrong.They are accepted standards of good and bad behavior.Many professional organization have codes of ethics or professional conduct t
17、hat direct the activities of their members.AICPAs Code of Professional Conduct Chinese Certified Public Accountants Code of Professional Ethics Questions 1.What is accounting?2.What are the three types of accounting information?3.Whats the difference between accounting and bookkeeping?4.How do accou
18、ntants perform their work?Questions 5.Define the internal and external users of accounting information.6.Identify at least five types of managers who are internal users of accounting information.7.Explain how does each group of information users apply accounting information.Questions 8.What are the
19、three broad areas in the fields of accounting?9.What are their difference?10.Why are professional ethics crucial in accounting?11.What are the three forms of business organizations?CHAPTER 2THEORETICAL FRAMEWORKUNDERLIYING FINANCIAL ACCOUNTINGLearning Objectives Know the conceptual framework for fin
20、ancial reporting Know the qualitative characteristics of accounting information Describe the elements of financial statements Understand the basic assumptions and the basic principles of accounting Learn the accounting terms in this chapter and use them in the translation task.Accounting theory What
21、 does accounting theory consist of?Where do they come from?Nature of a Theoretical Framework(Conceptual Framework)Definition of a Conceptual Framework The conceptual framework is a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards and that p
22、rescribes the nature,function,and limits of financial accounting and reporting.Enhance the understandability and comparability of financial reporting Solve the new and emerging practical problems Contribute to the development and application of accounting standards Roles of a Conceptual Framework 美国
23、财务会计准则委员会美国财务会计准则委员会(FASB)发布的系发布的系列概念公告是迄今为止最完整、最系统的列概念公告是迄今为止最完整、最系统的概念框架研究成果。概念框架研究成果。Financial Accounting Standards Board(FASB，美国，美国财务会计准则委员会财务会计准则委员会)A private,not-for-profit organization.The FASB follows due process（充充分程序分程序）rules and seeks public input at various points in GAAP development thr
24、ough“Exposure Drafts”（征求意见稿征求意见稿）.http:/www.fasb.org Securities and Exchange Commission(SEC，美国证，美国证券交易委员会券交易委员会)The federal agency that has authority to determine GAAP for public companies whose stock is traded on Stock Exchange.In essence,the SEC has acquiesced（默许）（默许）its role to to establish GAAP
25、to the FASB.Current Standard Setting FASBwww.fasb.orgEstablished in 1973.Supported by the Financial Accounting Foundation（财务会计基金（财务会计基金）.Seven full-time,independent voting members serving for 10 years.Members not required to be CPAs.Statement of financial accounting concepts,SFAC,财务会计概念公告财务会计概念公告 St
26、atement of financial accounting standards,SFASs,财务会计准则公告财务会计准则公告 Interpretation of the SFASs,财务会计准则财务会计准则解释解释美国财务会计概念公告一览表美国财务会计概念公告一览表 SFAC No.1 Objectives of Financial Reporting by Business Enterprise SFAC No.2 Qualitative Characteristics of Accounting Information SFAC No.3 Elements of Financial S
27、tatements of Business Enterprise（被（被SFAC No.6取代）取代）SFAC No.4 Objectives of Financial Reporting by Nonbusiness Organization SFAC No.5 Recognition and Measurement in Financial Statement of Business Enterprise SFAC No.6 Elements of Financial Statements（取代（取代SFAC No.3和部分修订和部分修订 SFAC No.62）SFAC No.7 Usin
28、g Cash Flow Information and Present Value in Accounting Measurements（对（对SFAC No.5第第67段进行修订）段进行修订）It is expected to serve the public interest by providing structure and direction to financial accounting and reporting to facilitate the provision of evenhanded financial and related information that is
29、useful in assisting capital and other markets to function efficiently in allocating scarce resources in the economy.International Accounting Standards Board(IASB,国际会计国际会计准则理事会准则理事会)www.iasb.orgFormer is International Accounting Standards Committee(IASC,国际会计准则委国际会计准则委员会员会)，established in 1973 to narr
30、ow the range of differences in accounting standards.IAS(International Accounting Standards)Reorganized into IASB in 2001.IFRS(International Financial Reporting Standards)The new IASC structure IFRS Foundation(IFRS基金会基金会)IASBIFRICInternational Financial Reporting Interpretations Committee（国际财务报告解释委员会
31、）（国际财务报告解释委员会）Framework for the Preparation and Presentation of Financial Statements It was approved by the IASC in April 1989 for publication in July 1989,and adopted by the IASB in April 2001.Objectives of financial reporting Building blocks for the conceptual framework Qualitative characteristics
32、 of accounting information and elements of financial statements a bridge between the first level and the second level Recognition and Measurement Concepts Recognition 确认确认 Measurement 计量计量 Accounting assumptions 会计假设会计假设 Accounting principles 会计原则会计原则 Constraints 制约因素制约因素Structure of conceptual fram
33、eworkFirst Level:Basic ObjectivesSecond Level:Fundamental ConceptsSecond Level:Fundamental Concepts Qualitative Characteristics of Accounting InformationFigure 2-2 in P16 Hierarchy 等级制度等级制度 Pervasive 普遍的普遍的 Threshold 门槛、起点、开端门槛、起点、开端 Criterion 评判的标准、尺度评判的标准、尺度Relevance To be useful,information must
34、be relevant to the decision-making needs of users.Information has the quality of relevance when it influences the economic decisions of users by helping them evaluate past,present or future events or confirming,or correcting,their past evaluations.Elements of Financial Statements(SFAC No.6)Assets As
35、sets 这个词表示资产时一定要用复数形式，即词尾要有这个词表示资产时一定要用复数形式，即词尾要有“s”。如果不。如果不用复数形式，就成为用复数形式，就成为“宝物，天赋、技能宝物，天赋、技能”的意思。的意思。Liabilities Equity Revenue Expenses Gains Losses Elements of Financial Statements(Framework for the Preparation and Presentation of Financial Statements,IASB)AssetsLiabilitiesEquityIncomeExpenses我
36、国的企业会计准则我国的企业会计准则基本准则基本准则对会计要素的规定对会计要素的规定 Assets Liabilities Owners equity Revenues Expenses ProfitThird Level:Recognition and Measurement Concepts Basic assumptions Basic principles ConstraintsBasic assumptionsEach economic organization is an accounting entity and must be kept separate and distinct
37、 from its owners,creditors,and other entities.Accounting Entity Assumption The business will remain in operation in the foreseeable future.Going Concern AssumptionAll transactions should be measured in money form.It implies the stable-money-unit assumption.It makes the information reliable&comparabl
38、e.Money Unit Assumption The life of business should be divided into short ones of equal length.It makes it easier to make financial statements and satisfies theaccounting information users need ofknowing the current conditions of the business.Periodicity AssumptionQuestions:1.()are the preconditions
39、 of identifying,measuring,recording and reporting economic transactions.2.()assumption implies the life of business should be divided into short ones.3.()assumes the business will continue for a quite long time.4.()limits the economic data in the accounting system to data related directly to the act
40、ivities of the business.5.()requires that money be used as the basic measuring unit.In fact,it also implies the()assumption.Accrual basis principle implies that revenue and expenses are recorded when they occurs but not when cash is received or paid.Accrual basis PrincipleAll goods and services purc
41、hased by an enterprise are recordedat acquisition cost and appear on financial statement at cost.Historical Cost Principle Historical cost 历史成本历史成本 Replacement cost 重置成本重置成本 Net realizable value 可变现净值可变现净值 Current value 现值现值 Fair value 公允价值公允价值Accounting measurement bases mainly comprise:Realization
42、 principleUnder the realization principle,revenues should be recognized at the time goods are sold or services are rendered.Matching principleUnder the matching principle,revenue for a period is matched with the expenses incurred in generating the revenue.Full disclosure principleFinancial statement
43、s and their accompanying notes should contain all relevant information a reader needs to understand the financial condition and performance of a business.Cost benefit relationship Materiality ConservatismConstraintsCost benefit relationshipAccountants should weigh the benefit derived from the inform
44、ation against the cost of providing that information.The benefits should exceed the costs.MaterialityThe word“materiality”refers to the relative importance of an item.Accountants should consider the relative importance of any transactions.ConservatismAccountants should be conservative in choosing th
45、e one that has the least favorable impact on net income when there are two or more alternative accounting methods.Questions:1.()implies accountants should be conservative in choosing the one that has the least favorable impact on net income when there are two or more alternative accounting methods.2
46、.Under(),revenues should be recognized at the time goods are sold or services are rendered.3.Under(),when the business provides a service,makes a sale,or incurs an expense,the accountant must enter it into the journal,whether or not cash has been received or paid.4.()requires financial statement sho
47、uld offer adequate information.Case China Security Regulatory Commission(CSRC)requires the listed companies disclose their annual reports within 4 months after the end date of each accounting period.A student major in accounting,argued,“Nowadays,timeliness is a vital characteristic of information.In
48、formation provided 4 months later is useless because the situation have changed greatly.”Do you agree or not?Why?The Accounting Regulation System in ChinaAccountingLawNPCMinistry of FinanceAccountingStandards for Business EnterpriseSpecificStandardsBasicStandardEnterpriseAccountingSystemApplying Gui
49、de ofAccountingStandards Basic StandardConcepts Framework of Financial Accounting(CF)Function:Conduct formulating specific standards我国的企业会计基本准则我国的企业会计基本准则General provisions 总则总则Qualitative requirements of accounting information会计信会计信息质量要求息质量要求 Assets 资产资产Liabilities 负债负债Owners equity 所有者权益所有者权益Reven
50、ues 收入收入Expenses 费用费用Profit 利润利润Accounting measurement 会计计量会计计量Financial reports 财务会计报告财务会计报告Supplementary provision 附则附则 Specific StandardsGenerally AcceptedAccounting Principles(GAAP)Function:Guidelines to govern the conduct of accountants Securities and Exchange Commission(SEC，美国证券交易委员会美国证券交易委员会)
