美国GAAP和国际IFRS两大会计准则制定原则
完整的财务报表：major financial statements (Statement of comprehensive income - I/S, B/S, Cash flow statement, statement of changes in equity), financial notes/footnotes, management dicussion and analysis, external auditors report, governance report and corporate responsibility report
financial position: A=L+E
Income Statement Equation: NI=I-E
Income : inflow of resources, revenue, other incomes
Expense: outflow of resources, expenses in ordinary activities, other expenses, losses
Cash Flow Statement: CFO, CFI and CFF
Measurement of financial statement: Historical cost, amortized cost, current cost, realizable value, present value and fair value
CI=NI+OCI
financial notes/footnotes: the basis of preparation, policies, method, estimates - 确定收入的政策、计提折旧的方法、资产残值的估计
MD&A：nature of the business, past results, future outlook，在美国，必须提及favorable or unfavorable trends, significant events and uncertainties，以及披露需要管理层定夺的or对财务结果有重大影响的关键会计政策
Audit report： independent auditor 对企业财务报表发表written opinion, 对财务报表的公允性与可靠性提供reasonable assurance， not absolute assurance. fairly presented 的财务报表没有直接影响财务报表的重大错误、欺诈、非法行为。unqualified opinion: 无保留意见，qualified opinion:保留，adverse opinion否定意见， disclaimer
Proxy Statement: 管理层或者高管的薪酬compensation, 股价方面的表现share price performance, 管理层、董事会、股东之间的conflicts of interest
Financial statement analysis frameworks
Assets: Cash and cash equivalents-银行活期存款demand deposits/treasury bills/commercial paper/money market funds, Accounts receivable - NRV report, Inventory, Financial assets, Prepaid expenses, Property, plant, and equipment, Investment in affiliates, Investment property, Intangible assets-专利权patents/特许经营权franchises/商标权trademarks/版权copyrights
Liabilities： Accounts payable， Financial liabilities, Unearned revenue, Accrued liabilities (expense), Income taxes payable, Long-term debt, Deferred tax liabilities.
Owners’ equity（Residual claim/net asset）:Cost of goods sold, Selling, general, and administrative expenses, Depreciation and amortization, Tax expense, Interest expense, Losses, EBIT
Flow of information in an accounting system
Accounting Equation
Ending retained earnings = beginning retained earnings+net income-dividend
Net Income = Revenue - Expense
Double-entry accounting: a recorded activity need to affect at least two accounts
Net income = (revenues -ordinary expenses) + (other income -other expense) + (gains –losses)
Net Revenue = Revenue -adjustments
Gross profit/margin=Revenues -COGS
Operating profit /income/EBIT=gross profit -operating expenses
GAAP 的收入确认原则：1）有据可查：买卖双方有交易证据-evidence of an arrangement, 2)义务履行：商品已经交割（delivered）,或者服务已经提供(rendered), 3)价格确定：价格（price）determind, 4)可以回款：卖方对账款回收有合理把握
Barter Transaction
GAAP:historically received cash payments, carrying value
IFRS: NON-barter, fair value
Basic EPS:
EPS=(NI-perferred dividend)/weighted average number of common shares outstanding
Diluted EPS
CFO = NI + noncash expenses (e.g., depreciation andamortization),-G/L nonoperating items (e.g., gains and losses) –change in net working capital.
Dividend paid = -Dividend declared + Δdividend payables
Opening R/E + Net Income –Dividend declared = Ending R/E
FCFF = NI + NCC –WC Inv–FC Inv+[ Int* (1 -tax rate) ]
FCFF = CFO –FC Inv+[ Int* (1 -tax rate) ]
*For firms follow IFRS that treat Dividend paidas part of CFO, the dividend paid must be added back for free cash flow calculation
FCFE = CFO –FC Inv+ Net borrowing
Sustainable growth rate
DuPont system of analysis
