Conceptual Framework and Convergence
The FASB アメリカ and IASB アメリカ are attempting to converge and enhance the conceptual framework that guides standard setting. The framework consists broadly of the following:
● Objectives—to provide information useful to investors, creditors, and others.
● Qualitative Characteristics—to require information that is relevant, reliable, and comparable.
● Elements—to define items that financial statements can contain.
● Recognition and Measurement—to set criteria that an item must meet for it to be recognized as an element; and how to mea- sure that element.
Point: State ethics codes require CPAs who audit financial statements to disclose areas where those statements fail to comply with GAAP. If CPAs fail to report noncompliance, they can lose their licenses and be subject to criminal and civil actions and fines.
英語で金の仕組み。ひひひ。
ゼイトゲイスト（ガイスト？）
The cumulative depreciation of an asset up to a single point in its life. Regardless of the method used to calculate it, the depreciation of an asset during a single period is added to the previous period’s accumulated depreciation to get the current accumulated depreciation.
An asset’s carrying value on the balance sheet is the difference between its purchase price and accumulated depreciation.
A company buys an asset for $5,000 that has a five-year lifespan and zero salvage value. The company uses straight-line depreciation, and the asset depreciates at a rate of $1,000 per year.
In year one, depreciation will be $1,000, as will accumulated depreciation, and carrying value of the asset will be $4,000.
In year two, depreciation will be $1,000, accumulated depreciation will be $2,000 ($1,000 from the current year + $1,000 accumulated from previous years) and carrying value will be $3,000.
Each subsequent year will follow the same process.
An asset’s carrying value on the balance sheet is the difference between its purchase price and accumulated depreciation.
A company buys an asset for $5,000 that has a five-year lifespan and zero salvage value. The company uses straight-line depreciation, and the asset depreciates at a rate of $1,000 per year.
In year one, depreciation will be $1,000, as will accumulated depreciation, and carrying value of the asset will be $4,000.
In year two, depreciation will be $1,000, accumulated depreciation will be $2,000 ($1,000 from the current year + $1,000 accumulated from previous years) and carrying value will be $3,000.
Each subsequent year will follow the same process.
Since revenue is credited regardless of when the cash is received, actual cash flow inside of a business is not clear for financial decision maker.
Cash flow statements provide more transparent information for them who can then avoid intrinsic risk, the risk even good companys sometime fail to manage cash flow for growth.
Cash flow statements provide more transparent information for them who can then avoid intrinsic risk, the risk even good companys sometime fail to manage cash flow for growth.