案例講座筆記chap9

ChapterChapter9AccountforcurrentliabilitiesandcontingentAccountforbondspayableandinterestAccountforcapitalandoperatingUnderstandtheadvantagesanddisadvantagesofborrowingReportliabilitiesonthebalance AccountAccountforcurrentliabilitiesandcontingent3UnderstandingtheTheacquisitionofassetsfinancedfromtwo Funds

FundsUnderstandingUnderstandingtheDebtisconsideredriskierthanInterestisalegalLiabilitiesDefinitionandDefinedasapresentobligationwhichwillbesettledthroughanoutflowofresources.Recognizedwhenitisprobablethatsuchanoutflowwilloccurandtheamountofwhichcanbemeasuredreliably.LiabilitiesLiabilitiesClassifiedintocurrent(short-term)andcurrent(long-term)Currentliabilitiesareexpressedinnominalamountsandnon-currentliabilitiesareexpressedinpresentvalues.Maturity=1yearorMaturity>1CurrentObligationsduewithinoneTwo?Known?Estimated long-term9?Amountsowedforproductsorservicespurchasedonaccount?Duewithinone?Usedtoborrowcashorpurchase?Accrue? AccountsandMarPurchaseofinventorybyissuinganoteDecInterestexpense(8,000x10%xInterestAccruedinterestonnoteAccountsandMarInterestexpense(8,000x10%xTorecordpaymentofnoteAccountsandSalestaxResultfromexpensesincurredbutnotyet?Salariesandwages?Interest?Incometaxes AccountsandSalaryFICAtaxesFICAFICA AccountsandReceivedadvancepaymentfromEarnedrevenuethatwascollectedinLong-termdebtoftenpaidininstallments（分期?Amountofprincipalpayablewithinone?Companyreclassifiesamountfromlong-termto EstimatedEstimatedCurrentProvisionforAccountsandWarrantyToaccruewarrantyToreplacedefectiveproductssoldunderContingentLiabilitiesarenotactual?Possibleobligationthatdependsonfutureoutcomeofpastevents,or?Presentobligationthatmay,butprobablywillnot,requireoutflowofresources,or?CannotreliablyestimateamountofobligationtobemadeintheForexample:obligationfromThereisnoneedtoreportacontingentlossthatisunlikelytooccur.It’saMatterofTheassessmentTheassessmentoffutureprobabilitiesisinherentlysubjectivebutbothUSGAAPandIFRSprovidesomeguidance.UnderGAAP,“probable”hasbeendefinedaslikelywhichisinterpretedashavingagreaterthan70%chanceofoccurring.InthecaseofIFRS,probableisdefinedasmorelikelythannotwhichwouldimplymorethana50%chanceofoccurring.ThisdifferencemeansthatcompaniesreportingunderIFRSwouldrecordaliabilitywhenothercompaniesreportingunderGAAPwouldreportthesameeventasacontingency.DollarAmountofPotentialNotReasonablyLiabilityAccrued&DisclosureNoteLiabilityAccrued&DisclosureNoteExercise:ContingentAresearchscientistdeterminesthatthecompany’sbest-tellingproductmayinfringeon(侵犯)anothercompany’spatent.Iftheothercompanydiscoverstheinfringementandfilessuit,yourcompanycouldlosemillionsofNotReported–Noreasontobelievethatlossis Exercise:Exercise:ContingentAspartoflanddevelopmentforanewhousingproject,yourcompanyhaspollutedanaturallake.Understatelaw,youmustcleanupthelakeonceyoucompletedevelopment.Thedevelopmentprojectwilltakefivetoeightyearstocomplete.Currentestimatesindicatethatitwillcost$2to$3milliontocleanupthelake.ReportLiability–Amountcanbeestimatedandlossseemsprobable Relativelysmalldebtneedscanbefilledfromsinglesources.Significantdebtneedsareoftenfilledbyissuingbondstothepublic.BondsBondsDebtsofissuing?Company?Principalparvalue,本金，面值?Maturity?Interest?InterestpaymentPriceabovePricebelowCreditDebitMarketpricedecreasestowardsmaturityMarketpriceincreasesatick Thebignumberincrementsof offace“ticks”whichmeans32ndsofonepercentoffacevalueTimeValueofDollarreceivedtodayisworthmorethanonereceivedinthefutureDollarinvestedearnsAmountinvestednowtoreceivemore?PresentPresentvaluedepends?Amountoffuture?Lengthof?Interest PresentPresentValueofaSingleInterestcompoundingThepresentvalueofasingleamountistheworthtoyoutodayofreceivingthatamountsometimeinthefuture.PresentValueofaSingled.d. amounttable,thefactoris$1,331÷（1+10%）3=Therequiredfutureamountisi=10%&n=3UsingthepresentvalueofaHowmuchdoweneedtoinvesttodayat10%interest,compoundedannually,ifweneed$1,331inthreeyears? InterestInterestRates&BondBondsalwayssoldatmarket?Bond’spresentTwointerestratessetbond?Statedinterestrate(couponPrintedonbondDeterminescashinterestpaidto?Marketinterestrate(effectiveinterestDemandedbyinvestorsforloaningCanfluctuateafterbondStatedrateusuallydiffersfrommarketSpotandForwardRateCurvesintheTreasuryIssuePriceofBondsCase=Case<Case>IssuedatAccountforbondspayableandinterest AccountsandJanToissuebondsatJulTopaysemi-annualAccountsandTopaybondsatAccountsandToissuebondsataBalanceLong-termBondsLess:DiscountonbondsIssueJanuary1,FaceStatedinterestInterestMaturityJanuary1,MarketinterestIssueInterestpaid–4.5%ABCDD1-7-1-7-1-0rp

FaceFaceCAout1 456789AccountsandJulDiscountonbondsTopayssemiannualinterestandamortizebondDec.DiscountonbondsToaccruesemiannualinterestandamortisebondBalanceSheetLong-termBondsLess:DiscountonbondsAssumeacompanyissues$100,000,8%,10-yearbondsonAugust31,at96whenthemarketratewas9%.Interestispaidsemi-annually. Accountsand Accountsand Dec.31InterestDiscountonbondspayableInterestpayable$96,000carryingamountx9%marketratex$100,000facevaluex8%interestratexIssueJanuary1,FaceStatedinterestInterestMaturityJanuary1,MarketinterestIssueABCDD1-7-1-7-1-0erp123456789 FaceFaceBCryAnt

DiscountorRetiringBondsBeforeReasonstopayoffbonds?Canrelievehighinterest?Canborrowatalowerinterest?Issuercanpayoffbondsataprearranged?Resultsinagainorloss(differencebetweencashpaidtoretirethebondsandthecarryingvalueofthebonds) Bondholderscanexchangebondsfor?Guaranteedreceiptofprincipalandintereston?PotentialforgainsonAccountforcapitalandoperating Leases租賃CapitalLeasesworklikeLesseehasrighttousetheassetrewardsofowing

LesseehasrightstouseLesseeassumesrisksandrewardsofownershipandassociatedobligationsPresentvalueofleasepaymentcapitalized AccountingforOperatingLesseewillrecordtheleaseexpenseeachperiodbasedonamountneededtopayExample:leasefactoryfor$2,000aDR.Lease CR.CashorLease CapitalCapitalLease?Leasetransferssubstantiallyallrisksandrewardsofassettolesseeor?Leasetransfersownershipofassettolesseeattheofthelease?Leasetermrepresentssubstantialpartofasset’susefullifeor?PresentvalueofleasepaymentsrepresentsubstantialpartoffairvalueUS?Transferoftitleatendoflease?Bargainpurchaseoptionor（承租人優(yōu)先期權(quán)?Leaseterm>75%ofusefullife?Presentvalueofleasepayments>90%offairvalueof AccountingforCapitalLesseewillrecordthepresentvalueofleasepaymentsonitsbooksDepreciatedinaccordancetotheentity’sLeasepaymentsmadewillbesetoffagainstleaseinterestexpense,andremainingbalanceusedtoreducetheoutstandingleasepayment Lease43,LeaseLease43,LeaseToTorecordcapitallease($10,000peryearfor5years@5%). JuneLeaseInterest Torecordfirstcapitallease BeginEnd1$$ $2$$$27,3$$$4$$$5$$$-UnderstandUnderstandtheadvantagesanddisadvantagesofborrowingFinan