TAILIEUCHUNG - Lecture Intermediate accounting (16th edition): Chapter 4 - Kieso, Weygandt, Warfield

Chapter 4 - Income statement and related information. After studying this chapter, you should be able to: Understand the uses and limitations of an income statement, prepare a single-step income statement, prepare a multiple-step income statement, explain how to report irregular items, explain intraperiod tax allocation. | PREVIEW OF CHAPTER 4 Intermediate Accounting 16th Edition Kieso ● Weygandt ● Warfield Understand the uses and limitations of an income statement. Describe the content of the income statement. Prepare an income statement. Explain how to report various income items. LEARNING OBJECTIVES Understand the reporting of accounting changes and errors. Prepare a retained earnings statement. Explain how to report other comprehensive income. After studying this chapter, you should be able to: Income Statement and Related Information 4 LO 1 Evaluate past performance. Help assess the risk or uncertainty of achieving future cash flows. Predicting future performance. Usefulness INCOME STATEMENT LO 1 Limitations Companies omit items that cannot be measured reliably. Income is affected by the accounting methods employed. Income measurement involves judgment. INCOME STATEMENT LO 1 Companies have incentives to manage income to meet or beat Wall Street expectations, so that market price of stock increases and value of stock options increase. Quality of earnings is reduced if earnings management results in information that is less useful for predicting future earnings and cash flows. Quality of Earnings INCOME STATEMENT LO 1 findings indicate that companies tend to nudge their earnings numbers up by a 10th of a cent or two. That lets them round results up to the highest cent, as illustrated in the following chart. What the research shows is that the number Managing earnings up or down adversely affects the quality of earnings. Why do companies engage in such practices? Some recent research concludes that many companies tweak quarterly earnings to meet investor expectations. How do they do it? Research WHAT’S YOUR PRINCIPLE WHAT DO THE NUMBERS MEAN? FOUR: THE LONELIEST NUMBER continued LO 1 “4” appeared less often in the 10th’s place than any other digit and significantly less often than would be expected by chance. This effect is called “quadrophobia.” For the typical company in the study,

• Kế toán - Kiểm toán
• Income statement
• Related information
• Income statement reporting
• Intraperiod tax allocation
• Intermediate accounting
• Lecture Intermediate accounting
• Financial Accounting
• Statement of cash flows
• Comprehensive income
• Nonoperating income
• Lecture Accounting
• Cost analysis
• What the numbers mean
• Cash flows
• Accounting information
• Accounting standards
• Cash flow statement
• International financial statement
• Financial statement
• International financial statement analysis
• Financial statement analysis
• Financial reporting
• Income statements
• Income taxes
• Lecture Financial statement analysis
• Prospective analysis
• Projected income statement
• Projected balance sheet
• Financial information
• Income tax reporting
• Deferred income tax assets
• Computing income tax expense
• Analyzing operating activities
• Income measurement
• Adversarial nature
• The balance sheet
• The income statement
• Revenue recognition
• Lecture Introduction to financial accounting
• Financial statements
• Service businesses
• Inventory methods
• Stockholders’ equity
• The time value of money
• Kế toán tài chính
• Fundamentals of financial accounting
• Reporting operating results
• Income statement accounts
• Managerial accounting
• Lecture Managerial accounting
• Variable costing
• Variable costing income statement
• Reducing production
• Liability valuation
• Income recognition
• Income flows versus cash flows
• Profitability analysis
• Issues in financial accounting
• Corporate accounting
• Reporting financial performance
• Earnings per share
• Accounting for income taxes
• Income statement presentation
• Valuation allowance revisited