Lecture Note_Alto_MBA_Financial Accounting and Analysis of Financial Statements_Financial Accounting_ Chapter 1

Accountants divide the economic life of a business into artificialtime periods.LO 1Accrual- versus Cash-Basis Accounting7 Copyright ©2019 John Wiley & Son, Inc.Accrual-Basis Accounting• Transactions are recorded in the periods in which the eventsoccur.• Companies recognize revenues when they perform services(rather than when they receive cash).• Expenses are recognized when incurred (rather than when paid).• Accrual-basis accounting is in accordance with IFRS.LO 1Analyze each account to determine whether it is complete and up-to-date for financial statement purposes.16

Financial AccountingIFRS 4th EditionWeygandt ● Kimmel ● KiesoChapter 12Corporations: Organization, ShareTransactions, and Equity자본회계27 Copyright ©2019 John Wiley & Son, Inc.If Delta Robotics has a balance of HK$800,000 in ShareCapital—Ordinary and HK$130,000 in retained earnings at theend of its first year, its equity section is as follows:Retained EarningsEquityShare capital—ordinary HK$8,000,000Retained earnings 1,300,000Total equity HK$9,300,000Delta RoboticsStatement of Financial Position (partial)34 Copyright ©2019 John Wiley & Son, Inc.Now assume tha

Financial AccountingIFRS 4th EditionChapter 2The Recording ProcessWeygandt ● Kimmel ● KiesoAccounts, Debits, and Credits5 Copyright ©2019 John Wiley & Son, Inc.The Account 계정과목An account is an individual accounting record of increases and decreases in aspecific asset, liability, or equity item.In its simplest form, an account consists of three parts: (1) a title, (2) a left ordebit side (차변 Dr.), and (3) a right or credit side (대변 Cr.).Note: Whenever we are referring to a specific account, we capitalize the name.LO 1Chart of Accounts 계정과목표35 Copyr

Financial AccountingIFRS 4th EditionWeygandt ● Kimmel ● KiesoChapter 9Plant Assets, Natural Resources,and Intangible Assets유형자산, 자연자원, 무형자산Plant Asset Expenditures(1 of 2)Plant assets are resources that have• physical substance 물리형태 (a definite size and shape),• are used in the operations 영업활동에 사용 of a business,• are not intended for sale 판매목적이 아님 to customers,• are expected to provide service to the company for a numberof years, except for land 1년을 초과하여 사용.Referred to as property, plant, an

Financial AccountingIFRS 4th EditionChapter 6Inventories재고자산Weygandt ● Kimmel ● KiesoClassifying and Determining InventoryMerchandisingCompany상품매매업 재고자산One Classification:• MerchandiseInventory 상품ManufacturingCompany제조업 재고자산Three Classifications:• Raw Materials 원재료• Work in Process 재공품• Finished Goods 제품Helpful HintRegardless of the classification, companies report all inventoriesunder Current Assets on the statement of financial position.4 Copyright ©2019 John Wiley & Sons, Inc.49 Copyright ©201