five keys to accounting l.
Download
Skip this Video
Download Presentation
Five Keys to Accounting

Loading in 2 Seconds...

play fullscreen
1 / 7

Five Keys to Accounting - PowerPoint PPT Presentation


  • 108 Views
  • Uploaded on

Five Keys to Accounting. Doug Shackelford University of North Carolina. #1 The Accountants’ Joke. Q: What is 2+2? A: What do you want it to be? The joke is right, But not for the reason you think!. #2 Accountants and Empirical Researchers. Assume Observe Measure Estimate Judge

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Five Keys to Accounting' - aitana


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
five keys to accounting

Five Keys to Accounting

Doug Shackelford

University of North Carolina

1 the accountants joke
#1The Accountants’ Joke

Q: What is 2+2?

A: What do you want it to be?

The joke is right,

But not for the reason you think!

2 accountants and empirical researchers
#2Accountants and Empirical Researchers
  • Assume
  • Observe
  • Measure
  • Estimate
  • Judge
  • Record
  • Audit/Replicate/Challenge
3 accountants measure balance sheets
#3Accountants Measure Balance Sheets
  • Assets = Liabilities + Equity
  • Income is the Difference
  • Tax Starts with that Difference (Income) and makes adjustments
  • Tax Balance Sheets--the missing statements
balance sheets vs tax returns
Balance Sheets vs. Tax Returns
  • Source of Confusion
  • GAAP measures A, L, and E
  • Tax takes (unimportant) Changes to get Taxable Income
  • Example: Accounting for Income Taxes
    • GAAP trying to measure Deferred Tax ASSETS and LIABILITIES
    • Key reason book tax provision isn’t taxes paid
  • Why M-3 requires B/S Understanding
4 language matters
Book

Expenses (Provision)

Earnings

Retained Earnings

Book Value

Goodwill

LIFO

Tax

Deductions

Income

Earnings and Profits (sort of)

Basis

Goodwill

LIFO

#4Language Matters
5 why book tax conformity is a misguided idea
#5 Why Book-Tax Conformity Is a Misguided Idea
  • Demand for accounting: Reduce asymmetric information by constructing balance sheets in a reliable and relevant manner using judgment
  • Demand for tax: Collect revenue with as little judgment as possible
  • Conformity is a naïve notion based on a failure to appreciate the role of accounting