课件财务会计under ideal conditions.pptx

2-1 Chapter 2 Accounting Under Ideal Conditions Two conditions - Certainty - Uncertainty Present value model 2-2 Ideal Conditions of Certainty Assumption Known future cash receipts Given interest rate Example 2.1 Consider P.V. Ltd, a one asset-fir with no liabilities. Assume that the asset will generate end-of-year cash flows of $150 each year for two years and the will have zero value. Assume also that the risk-free interest rate in the economy is 10%. Then , at time 0, the present value of the firm’s future cash flows will be ? 2-3 Ideal Conditions of Certainty P.V.Ltd Balance sheet As at Time 0 Capital asset , at present value $260.33 Shareholders’ equity $260.33 P.V.Ltd e Statement For Year 1 Acreation of discount $26.03 2-4 Ideal Conditions of Certainty P.V.Ltd Balance sheet As at Time 1 Financial Asset Shareholders’ equity Cash $150.00 Openning Value $260.33 Capital asset , at present value $136.36 Net e $26.03 $286.36 $286.36 2-5 Ideal Conditions of Certainty (Cont’d) Characteristic of accounting Book value = Fair value= Market value Earn expected net e Either balance sheet or e statement is enough Entir