ACCT 3030 Intermediate Financial Accounting
for Non-Accounting Majors
Fall 2024
Tues and Thurs
Instructor: Yue ZHENG
Email: aczheng@[Link]
Office hours: by appointment
Office: LSK 6050
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Intermediate Accounting Road Map
13. Current Liabilities, Provisions, and
1. Financial Reporting and Accounting Standards
Contingencies
2. Conceptual Framework for Financial Reporting 14. Non-Current Liabilities
3. The Accounting Information System 15. Equity
4. Income Statement and Related Information 16. Dilutive Securities and Earning Per Share
5. Balance Sheet and Statement of Cash Flows 17. Investments
6. Accounting and the Time Value of Money 18. Revenue Recognition
7. Cash and Receivables 19. Accounting for Income Taxes
8. Valuation of Inventories: A Cost-Basis 20. Accounting for Pensions and
Approach Postretirement Benefits
9. Inventories: Additional Valuation Issues 21. Accounting for Leases
10. Acquisition and Disposition of Property, Plant,
22. Accounting Changes and Error Analysis
and Equipment
11. Depreciation, Impairments, and Depletion 23. Statement of Cash Flow
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12. Intangible Assets 24. Full Disclosure in Financial Reporting
Financial Reporting CHAPTER 1
and Accounting Standards
LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1. Describe the global financial 3. Identify the major policy-
markets and its relation to setting bodies and their role
financial reporting. in the standard-setting
process.
2. Explain the objective of financial
reporting. 4. Discuss the challenges
facing financial reporting.
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Objective of Financial LEARNING OBJECTIVE 2
Explain the objective of
Reporting financial reporting.
Objective: Provide financial information about the reporting
entity that is useful to
► present and potential equity investors,
► lenders, and Who else may also use
financial information?
► other creditors
in making decisions about providing resources to the entity.
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Accounting and Capital Allocation
Resources are limited. Efficient use of resources often
determines whether a business thrives.
ILLUSTRATION 1.3 Is efficient capital allocation important to
Capital Allocation Process
the economy? Why?
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Accounting and Capital Allocation
What if we don’t have high-quality financial reporting?
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Enron Scandal
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LEARNING OBJECTIVE 3
Standard-Setting Identify the major policy-setting
bodies and their role in the
Organizations standard-setting process.
The IFRS Standard-setting Structure
Composed of four organizations—
► IFRS Foundation
► International Accounting Standards Board (IASB)
► IFRS Advisory Council
► IFRS Interpretations Committee
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International Accounting Standards Board
ILLUSTRATION 1.4
International Standard-Setting Structure
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Standard-Setting Organizations
International Accounting Standards Board (IASB)
● Issues International Financial Reporting Standards (IFRS).
● Standards used on most foreign exchanges.
● IFRS used in over 149 countries.
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International Accounting Standards Board
Due Process
The IASB due process has the following elements:
1. Independent standard-setting board;
2. Thorough and systematic process for developing
standards;
3. Engagement with investors, regulators, business leaders,
and the global accountancy profession at every stage of
the process; and
4. Collaborative efforts with the worldwide standard-setting
community.
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[Link]
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LO 3
International Accounting Standards Board
The IASB issues three types of Pronouncements
► International Financial Reporting Standards.
► Conceptual Framework for Financial Reporting.
► International Financial Reporting Standards Interpretations.
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IFRS Interpretations Committee
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Standard-Setting Organizations
Hierarchy of IFRS
In preparing financial statements, companies first look to:
1. International Financial Reporting Standards, International
Accounting Standards (issued by the predecessor to the
IASB), and IFRS interpretations originated by the IFRS
Interpretations Committee (and its predecessor, the IAS
Interpretations Committee);
2. The Conceptual Framework for Financial Reporting; and
3. Pronouncements of other standard-setting bodies that use a
similar conceptual framework (e.g., U.S. GAAP).
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Attention!
Please do NOT distribute the slides or post them
in public websites without the instructor’s
permission. Thank you.
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