ACCA考试《公司报告P2》知识辅导.doc

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1、ACCA考试公司报告P2知识辅导2本文由高顿ACCA整理发布，转载请注明出处RELEVANT TO ACCA QUALIFICATION PAPER F7 AND P2Studying Paper F7 or P2Performance objectives 10 and 11 are relevant to this examThe IASB抯 Conceptual Framework for Financial ReportingI am from England, and here in the UK, unlike most countries, our system ofgovern

2、ment has no comprehensive written constitution. Many countries dohave such constitutions and in these circumstances the laws of the land areshaped and influenced by the constitution. Now while the InternationalAccounting Standards Board （IASB） is not a country it does have a sort ofconstitution, in

3、the form of the Conceptual Framework for Financial Reporting（the Framework）， that proves the definitive reference document for thedevelopment of accounting standards. The Framework can also be describedas a theoretical base, a statement of principles, a philosophy and a map. Bysetting out the very b

4、asic theory of accounting the Framework points the wayfor the development of new accounting standards. It should be noted that theFramework is not an accounting standard, and where there is perceived to be aconflict between the Framework and the specific provisions of an accountingstandard then the

5、accounting standard prevails.Before we look at the contents of the Framework, let us continue to put theFramework into context. It is true to say that the Framework:seeks to ensure that accounting standards have a consistent approach toproblem solving and do not represent a series of ad hoc response

6、s thataddress accounting problems on a piece meal basisassists the IASB in the development of coherent and consistentaccounting standardsis not a standard, but rather acts as a guide to the preparers of financialstatements to enable them to resolve accounting issues that are notaddressed directly in

7、 a standardis an incredibly important and influential document that helps usersunderstand the purpose of, and limitations of, financial reportingused to be called the Framework for the Preparation and Presentation ofFinancial Statements?is a current issue as it is being revised as a joint project wi

8、th the IASBsAmerican counterparts the Financial Accounting Standards Board .Overview of the contents of the FrameworkThe starting point of the Framework is to address the fundamental question ofwhy financial statements are actually prepared. The basic answer to that isthey are prepared to provide fi

9、nancial information about the reporting entitythat is useful to existing and potential investors, lenders, and other creditors inmaking decisions about providing resources to the entity.In turn this means the Framework has to consider what is meant by usefulinformation. In essence for information to

10、 be useful it must be considered bothrelevant, ie capable of making a difference in the decisions made by users and2THE IASB CONCEPTUAL FRAMEWORK FOR FINANCIALREPORTINGMARCH 2011be faithful in its presentation, ie be complete, neutral and free from error. Theusefulness of information is enhanced if

11、it is also comparable, verifiable,timely, and understandable.The Framework also considers the nature of the reporting entity and, in whatreminds me of my school chemistry lessons, the basic elements from whichfinancial statements are constructed. The Framework identifies three elementsrelating to th

12、e statement of financial position, being assets, liabilities andequity, and two relating to the income statement, being income and expenses.The definitions and recognition criteria of these elements are very importantand these are considered in detail below.The five elementsAn asset is defined as a

13、resource controlled by the entity as a result of pastevents and from which future economic benefits are expected to flow to theentity.Assets are presented on the statement of financial position as beingnoncurrent or current. They can be intangible, ie without physical presence, eggoodwill. Examples

14、of assets include property plant and equipment, financialassets and inventory.While most assets will be both controlled and legally owned by the entity itshould be noted that legal ownership is not a prerequisite for recognition,rather it is control that is the key issue. For example IAS 17, Leases,

15、 withregard to a lessee with a finance lease, is consistent with the Frameworksdefinition of an asset. IAS 17 requires that where substantially all the risks andrewards of ownership have passed to the lessee it is regarded as a financelease and the lessee should recognise an asset on the statement o

16、f financialposition in respect of the benefits that it controls, even though the assetsubject to the lease is not the legally owned by the lessee. So this reflects thatthe economic reality of a finance lease is a loan to buy an asset, and so theaccounting is a faithful presentation.A liability is de

17、fined as a present obligation of the entity arising from pastevents, the settlement of which is expected to result in an outflow from theentity of resources embodying economic benefits.Liabilities are also presented on the statement of financial position as beingnoncurrent or current. Examples of li

18、abilities include trade payables, taxcreditors and loans.It should be noted that in order to recognise a liability there does not have tobe an obligation that is due on demand but rather there has to be a presentobligation. Thus for example IAS 37, Provisions, Contingent Liabilities and3THE IASB CON

19、CEPTUAL FRAMEWORK FOR FINANCIALREPORTINGMARCH 2011Contingent Assets is consistent with the Frameworks approach whenconsidering whether there is a liability for the future costs to decommission oilrigs. As soon as a company has erected an oil rig that it is required todismantle at the end of the oil

20、rigs life, it will have a present obligation inrespect of the decommissioning costs. This liability will be recognised in full,as a non-current liability and measured at present value to reflect the timevalue of money. The past event that creates the present obligation is theoriginal erection of the

21、 oil rig as once it is erected the company is responsibleto incur the costs of decommissioning.Equity is defined as the residual interest in the assets of the entity afterdeducting all its liabilities.The effect of this definition is to acknowledge the supreme conceptualimportance of indentifying, r

22、ecognising and measuring assets and liabilities, asequity is conceptually regarded as a function of assets and liabilities, ie abalancing figure.Equity includes the original capital introduced by the owners, ie share capitaland share premium, the accumulated retained profits of the entity, ie retain

23、edearnings, unrealised asset gains in the form of revaluation reserves and, ingroup accounts, the equity interest in the subsidiaries not enjoyed by theparent company, ie the non-controlling interest （NCI）。 Slightly more exotically,equity can also include the equity element of convertible loan stock

24、, equitysettled share based payments, differences arising when there are increases ordecreases in the NCI, group foreign exchange differences and contingentlyissuable shares. These would probably all be included in equity under theumbrella term of Other Components of Equity.Income is defined as the

25、increases in economic benefits during the accountingperiod in the form of inflows or enhancements of assets or decreases ofliabilities that result in increases in equity, other than those relating tocontributions from equity participants.Most income is revenue generated from the normal activities of

26、 the business inselling goods and services, and as such is recognised in the Income section ofthe Statement of Comprehensive Income, however certain types of income arerequired by specific standards to be recognised directly to equity, ie reserves,for example certain revaluation gains on assets. In

27、these circumstances theincome （gain） is then also reported in the Other Comprehensive Income sectionof the Statement of Comprehensive Income.The reference to ther than those relating to contributions from equityparticipants?means that when the entity issues shares to equity shareholders,4THE IASB CO

28、NCEPTUAL FRAMEWORK FOR FINANCIALREPORTINGMARCH 2011while this clearly increases the asset of cash, it is a transaction with equityparticipants and so does not represent income for the entity.Again note how the definition of income is linked into assets and liabilities.This is often referred to as he

29、 balance sheet approach?（the former name forthe statement of financial position）。Expenses are defined as decreases in economic benefits during the accountingperiod in the form of outflows or depletions of assets or incurrences ofliabilities that result in decreases in equity, other than those relati

30、ng todistributions to equity participants.The reference to ther than those relating to distributions to equityparticipants?refers to the payment of dividends to equity shareholders. Suchdividends are not an expense and so are not recognised anywhere in theStatement of Comprehensive Income. Rather th

31、ey represent an appropriationof profit that is as reported as a deduction from Retained Earnings in theStatement of Changes in Equity.Examples of expenses include depreciation, impairment of assets andpurchases. As with income most expenses are recognised in the IncomeStatement section of the Statem

32、ent of Comprehensive Income, but in certaincircumstances expenses （losses） are required by specific standards to berecognised directly in equity and reported in the Other Comprehensive IncomeSection of the Statement of Comprehensive Income. An example of this is animpairment loss, on a previously re

33、valued asset, that does not exceed thebalance of its Revaluation Reserve.The recognition criteria for elementsThe Framework also lays out the formal recognition criteria that have to be metto enable elements to be recognised in the financial statements. Therecognition criteria that have to be met ar

34、e thatthat an item that meets the definition of an element andit is probable that any future economic benefit associated with the itemwill flow to or from the entity andthe item cost or value can be measured with reliability.Measurement issues for elementsFinally the issue of whether assets and liab

35、ilities should be measured at cost orvalue is considered by the Framework. To use cost should be reliable as thecost is generally known, though cost is not necessary very relevant for theusers as it is past orientated. To use a valuation method is generally regardedas relevant to the users as it up

36、to date, but value does have the drawback ofnot always being reliable. This conflict creates a dilemma that is notsatisfactorily resolved as the Framework is indecisive and acknowledges that5THE IASB CONCEPTUAL FRAMEWORK FOR FINANCIALREPORTINGMARCH 2011there are various measurement methods that can

37、be used. The failure to beprescriptive at this basic level results in many accounting standards sitting onthe fence how they wish to measure assets. For example IAS 40, InvestmentProperties and IAS 16, Property, Plant and Equipment both allow the preparer thechoice to formulate their own accounting

38、policy on measurement.Applying the FrameworkA company is about to enter into a three-year lease to rent a building. Thelease cannot be cancelled and there is no certainty of renewal. The landlordretains responsibility for maintaining the premises in good repair. Thedirectors are aware that in accord

39、ance with IAS 17 that technically the lease isclassified as an operating lease, and that accordingly the correct accountingtreatment is to simply expense the income statement with the rentals payable.RequiredExplain how such a lease can be regarded as creating an asset and liability perthe Framework

40、.Solution ?leaseGiven that it is reasonable to assume that the expected life of the premises willvastly exceed three years and that the landlord （lessor） is responsible for themaintenance, on the basis of the information given, the risks and rewards ofownership have not passed. As such IAS 17 prescr

41、ibes that the lessee chargesthe rentals payable to the income statement. No asset or liability is recognised,although the notes to the financial statements will disclose the existence of thefuture rental payments.However, instead of considering IAS 17 let us consider how the Frameworkcould approach

42、the issue. To recognise a liability per the Framework requiresthat there is a past event that gives rise to a present obligation. It can beargued that the signing of the lease is a sufficient past event as to create apresent obligation to pay the rentals for the whole period of the lease. On thesame

43、 basis, while substantially all the risks and rewards of ownership have notpassed, the lessee does control the use of the building for three years and hasthe benefits that brings. Accordingly, when considering the Framework, aradically different potential treatment arises for this lease. On entering

44、 thelease a liability is recognised, measured at the present value of the future cashflow obligations to reflect the time value of money. In turn an asset would alsobe accounted for. After the initial recognition of the liability, a finance cost ischarged against profit in respect of unwinding the d

45、iscount on the liability. Theannual cash rental payments are accounted for as a reduction in the liability.The asset is systematically written off against profit over the three years of theagreement （depreciation）。6 THE IASB扴 CONCEPTUAL FRAMEWORK FOR FINANCIALREPORTINGMARCH 2011There is, at present, a conflict betw