Professional Documents
Culture Documents
Accounting and
Financial
Management
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
Introduction to
Accounting Cycle
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
DEBITS CREDITS
DEBITS AND CREDITS
Assets Liabilities
Debit / Dr. Credit / Cr. Debit / Dr. Credit / Cr.
Chapter Chapter
3-23 3-24
Deferrals Accruals
Prepaid Expenses
Accrued Revenue
Expenses paid in cash
and recorded as Revenues earned but not
assets before they are yet received in cash or
used or consumed recorded.
Unearned Revenues.
Revenues received in Accrued Expenses.
cash and recorded as Expenses incurred but
liabilities before they are not yet paid in cash or
earned. recorded.
Adjusting Entries for Defferals
Summary
Summary
Summary
Summary
Source : Weygandt,Kimmel,Kieso,
(2013), Financial Accounting IFRS
Edition, 2nd edition, John Wiley and
Sons Inc., New Jersey, Page 114
Week 1
Introduction to Financial
Statements and Other
Financial Reporting Topics
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
• Income statement
• Statement of stockholders’ equity
• Balance sheet
• Statement of cash flows
• Support for the financial statements is
provided by notes
The Adjusted Trial Balance
Statement Retained
Income
of Financial Earnings
Statement
Position Statement
PREPARING FINANCIAL STATEMENT
Illustration 3-25
Preparation of the income
statement and retained
earnings statement from
the adjusted trial balance
Source :
Weygandt,Kimmel,Kieso,
(2013), Financial
Accounting IFRS Edition,
2nd edition, John Wiley
and Sons Inc., New Jersey,
Page 115
PREPARING FINANCIAL STATEMENT
Illustration 3-25
Source :
Weygandt,Kimmel,Kieso,
(2013), Financial
Accounting IFRS Edition,
2nd edition, John Wiley
and Sons Inc., New Jersey,
Page 116
EQUITY RELATIONSHIP
CLASSIFICATION OF CASH FLOWS
Statement of
Cash Flows
3. Additional information
FORMAT OF STATEMENT OF CASH FLOWS
3. Financing activities.
Temporary Permanent
All Revenue All Asset
Accounts Accounts
Temporary Accounts
relate only to given
accounting period All Expense All Liability
Accounts Accounts
Permanent Accounts
relate to one or more
future accounting periods.
Dividends Equity
CLOSING THE BOOKS
Note:
Dividends are closed directly
to retained earnings and not
to Income Summary because
dividends are not an
expense.
POST-CLOSING TRIAL BALANCE
Unqualified Opinion
• The financial statements present fairly
– The financial position
– Results of operations
– Cash flows
• In conformity with generally accepted
accounting principles
• For the user: the highest degree of reliability
AUDITOR’S OPINION
Qualified Opinion
• Except for the matter to which the exception
relates
• The financial statements present fairly
– The financial position
– Results of operations
– Cash flows
• In conformity with generally accepted accounting
principles
• For the user: determine the significance of the
exception
AUDITOR’S OPINION
Adverse Opinion
• The financial statements do not present fairly
– The financial position
– Results of operations
– Cash flows
• In conformity with generally accepted
accounting principles
• For the user: reliability of financial statements
need to be seriously questioned
AUDITOR’S OPINION
Disclaimer of Opinion
• The auditor does not express an opinion
• Auditor
– Has not preformed an audit sufficient in scope to
form an opinion or
– Is not independent
• For the user: auditor’s statement conveys no
indication of financial statement reliability
Week 2
ASSETS
• Probable future economic benefits obtained or
controlled by an entity as a result of past
transactions or events
– Current Assets – operating cycle or one year which
ever is longer to convert or conserve cash.
– Long-Term (noncurrent) assets – take longer than
one year or operating cycle to convert or conserve
cash.
ASSETS
CURRENT ASSETS
• Cash and assets that will be converted into cash during
the operating cycle or within a year, whichever is longer
• Presented in order of liquidity
– Cash
– Marketable Securities
– Accounts Receivable
– Other receivables due from nontrade sources
– Inventories
– Prepaid
ASSETS
LIABILITIES
• Probable future sacrifices of economic
benefits arising from present obligations of a
particular entity to transfer assets or provide
services to other entities in the futures as a
result of past transactions or events.
– Current Liabilities
– Long-Term Liabilities
LIABILITIES
CURRENT LIABILITIES
• Obligations whose liquidation is reasonably
expected to
• Require the use of
– Existing current assets
– Creation of other current liabilities
• Within one year or the operating cycle,
whichever is longer
LIABILITIES
CURRENT LIABILITIES (Cont’d)
• Payables
– Short-term obligations created by the
acquisition of goods or services
• Unearned Income
– Payments collected in advance of the
performance of services or delivery of goods
• Other current liabilities
– As circumstances warrant
LIABILITIES
• Deferred Taxes
Difference between accounting and tax methods
• Warranty Obligations
• Non controlling Interest (was minority interest)
• Other Noncurrent Liabilities
• Redeemable Preferred stock
STATEMENTS OF FINANCIAL POSITION
(BALANCE SHEET)
STOCKHOLDER’S EQUITY
• The residual ownership interest in the
assets of an entity that remains after
deducting its liabilities
– Paid-in Capital
– Additional paid-in capital
– Retained Earnings
IFRS Balance Sheet Format
Statement
of Cash Flows
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
Statement of
Cash Flows
3. Additional information
FORMAT OF STATEMENT OF CASH FLOWS
3. Financing activities.
Illustration 13-4
Operating Activities – Indirect Method
Sustainability
Reporting
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
Human Rights
Principle 1: Businesses should support and respect the protection of
internationally proclaimed human rights
Principle 2: Make sure that they are not complicit in human rights
abuses
Labor
Principle 3: Businesses should uphold the freedom of association
and the effective recognition of the right to collective bargaining
Principle 4: The elimination of all forms of forced and compulsory
labor
Principle 5: The effective abolition of child labor
Principle 6: The elimination of discrimination in respect of
employment and occupation
Component of Sustainability Reporting
Environment
Principle 7: Businesses should support a precautionary approach to
environmental challenges
Principle 8: Undertake initiatives to promote greater environmental
responsibility
Principle 9: Encourage the development and diffusion of
environmentally friendly technologies
Anti-Corruption
Principle 10: Businesses should work against corruption in all its
forms, including extortion and bribery
Week 5
Basics Of
Analysis
Financial Accounting, IFRS 2nd Edition
Weygandt ● Kimmel ● Kieso
ANALISA PROSES
LAPORAN
LAPORAN PENGAMBILAN
KEUANGAN
KEUANGAN KEPUTUSAN
RATIO
RATIO LIQUIDITY
ANALYSIS
RATIO
PROFITABILITY
HORIZONTAL TREND
ANALYSIS ANALYSIS
RATIO
SOLVABILITY
VERTICAL
ANALYSIS
RATIO ANALYSIS
Illustration 14-27
Summary of liquidity ratios
RATIO ANALYSIS Profitability
Illustration 14-27
Summary of profitability ratios
RATIO ANALYSIS Solvency
Illustration 14-27
Summary of solvency ratios
VERTICAL ANALYSIS
Melcher Company
Income Statement
For the Years Ended December 31
2009 2008 2007
Sales revenue $ 100,000 100.0% $ 95,000 100.0% $91,000 100.0%
Cost of goods sold 65,000 65.0% 60,800 64.0% 56,420 62.0%
Gross profit 35,000 35.0% 34,200 36.0% 34,580 38.0%
Operating expenses:
Selling expense 14,000 14.0% 11,400 12.0% 10,000 11.0%
General expense 16,000 16.0% 15,200 16.0% 13,650 15.0%
Total operating expense 30,000 30.0% 26,600 28.0% 23,650 26.0%
Operating Income before taxes 5,000 5.0% 7,600 8.0% 10,930 12.0%
Taxes related to operations 1,500 1.5% 2,280 2.4% 3,279 3.6%
Net Income $ 3,500 3.5% $ 5,320 5.6% $ 7,651 8.4%
Melcher Company
Income Statement
For the Years Ended December 31
2009 2008 2007 2009 2008 2007
Sales revenue $ 100,000 $ 95,000 $ 91,000 109.9% 104.4% 100.0%
Cost of goods sold 65,000 60,800 56,420 115.2% 107.8% 100.0%
Gross profit 35,000 34,200 34,580 101.2% 98.9% 100.0%
Operating expenses:
Selling expense 14,000 11,400 10,000 140.0% 114.0% 100.0%
General expense 16,000 15,200 13,650 117.2% 111.4% 100.0%
Total operating expense 30,000 26,600 23,650 126.8% 112.5% 100.0%
Operating Income before taxes 5,000 7,600 10,930 45.7% 69.5% 100.0%
Taxes related to operations 1,500 2,280 3,279 45.7% 69.5% 100.0%
Net Income $ 3,500 $ 5,320 $ 7,651 45.7% 69.5% 100.0%
• Karyawan
• Pemberi Pinjaman
• Investor
• Pemasok dan kreditor usaha lainnya
• Pelanggan
• Masyarakat
• Pemerintah
REFERENCE