Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !

sen Uni"e#si $

Lesson notes Lesson 10 Understanding and Using Financial Statements Learning objectives %& Desc#i'e he nee( an( su))l$ fo# financial s a emen anal$sis& *& Lea#n 'asic financial s a emen anal$ ical )#oce(u#es& +& ,e#fo#m ho#i-on al an( "e# ical anal$sis on financial s a emen accoun s an( in e#)#e he (a a o' aine(& .& Calcula e a num'e# of #a ios #ela e( o efficienc$, sol"enc$, li/ui(i $, an( )#ofi a'ili $ an( e0)lain he info#ma ion su))lie( '$ each, in(i"i(uall$ an( collec i"el$& 1& A2a#e of he limi a ions of financial s a emen anal$sis Teaching hours S u(en s ma3o# in accoun in45 + hou#s O he# s u(en s5 Teaching contents The financial con(i ion an( he #esul s of o)e#a ion of 'usiness en e#)#ise a#e of in e#es o man$ 4#ou)s , inclu(in4 o2ne#s, mana4e#s, c#e(i o#s, 4o"e#nmen al a4encies, 6 hou#s

em)lo$ees, an( )#os)ec i"e o2ne#s an( c#e(i o#s& The )#inci)al financial s a emen s, o4e he# 2i h su))lemen a#$ s a emen s an( sche(ules, )#esen much of he 'asic info#ma ion nee(e( o make soun( economic (ecisions #e4a#(in4 'usiness en e#)#ises& In his lesson, he "a#ious 2a$s in 2hich financial s a emen (a a can 'e anal$-e( o assis in makin4 hese (ecisions 2ill 'e (iscusse(&

Demand and supply of financial analysis

Demand of financial analysis ,a# ies (eman(in4 financial s a emen info#ma ion inclu(e5 Sha#ehol(e#s, in"es o#s an( secu#i $ anal$s s7 Mana4e#s7 Em)lo$ees7 Len(e#s an( o he# su))lie#s7 Cus ome#s7 an( Go"e#nmen #e4ula o#$ a4encies

These )a# ies can also 'e 4#ou)e( in o in e#nal "e#sus e0 e#nal use#s& In e#nal use#s consis of mana4e#s an( em)lo$ees 2hile e0 e#nal use#s consis of he #es in he a'o"e lis &

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

Suppliers of Financial Statements analysis Business fi#ms a#e he su))lie#s of he financial s a emen s info#ma ion& Limi e( lia'ili $ com)anies a#e #e/ui#e( '$ he com)an$ ac o )#e)a#e financial s a emen s an( (isclose he

au(i e( financial s a emen s o he )u'lic8sha#ehol(e#s& Lis e( com)anies a#e #e/ui#e( '$ he #e4ula ions 4o"e#nin4 he o)e#a ion of he s ock ma#ke o (isclose au(i e( financial s a emen info#ma ion& A he same ime, some fi#ms9 in e#nal anal$s s )#o"i(e financial s a emen anal$sis o hel) mana4e#s make (ecision& Ou si(e in e#me(ia#ies a4encies, such as financial anal$s s, 'on( #a in4 a4encies, )#o"i(e )#ofessional se#"ices o he e0 e#nal use#s of financial s a emen info#ma ion&

Basic analytical procedures

The anal$ ical measu#es o' aine( f#om financial s a emen s a#e usefull$ e0)#esse( as #a ios o# )e#cen a4es& Anal$ ical )#oce(u#e ma$ 'e use( o com)a#e he amoun of s)ecific i ems on a cu##en s a emen 2i h he co##es)on(in4 amoun s on ea#lie# s a emen s& Anal$ ical )#oce(u#es a#e also 2i(el$ use( o sho2 he #ela ionshi) of in(i"i(ual i ems o each o he# an( of in(i"i(ual i ems o o als on a sin4le s a emen &

Techni ues of Financial Statement !nalysis

"ertical analysis and hori#ontal analysis :e# ical ;o# common si-e< anal$sis uses one i em on each financial s a emen as a 'ase amoun an( e0)#esses o he# amoun s as a )e#cen a4e of he 'ase& On he 'alance shee , o al asse s a#e usuall$ he 'ase, 2hile he income s a emen uses ne sales& Financial s a emen s 'ase( on "e# ical anal$sis allo2 fo# eas$ anal$sis 'e 2een com)anies o# 'e 2een ime )e#io(s of a com)an$& Fo#ma in4 financial s a emen s in his 2a$ #e(uces he 'ias ha can occu# 2hen anal$-in4 com)anies of (iffe#in4 si-es& I also allo2s fo# he anal$sis of a com)an$ o"e# "a#ious ime )e#io(s, #e"ealin4, fo# e0am)le, 2ha )e#cen a4e of sales is cos of 4oo(s sol( an( ho2 ha "alue has chan4e( o"e# ime& =o#i-on al ;o# #en(< anal$sis uses (a a f#om )#io# $ea#s as a $a#(s ick& Usuall$, he ol(es $ea# is use( as a 'ase, line '$ line, an( su'se/uen $ea#s a#e e0)#esse( as a )e#cen a4e of he 'ase& In essence, he anal$s is lookin4 fo# a#eas of (e e#io#a ion o# im)#o"emen f#om a )#io# )e#io(& Ca#e mus 'e aken 2i h ho#i-on al anal$sis 'ecause small chan4es in la#4e i ems ;such as in"en o#$ o# ca)i al asse s< a#e some imes fa# mo#e si4nifican han la#4e chan4es in small

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

accoun s ;such as )#e)ai(s<, 2hich can 'e "ola ile& =o#i-on al anal$sis on an income s a emen in(ica es sales #en(s an( he 'eha"iou# of he "a#ious e0)ense com)onen s o"e# ime& The #en(s in hese )e#cen a4es ma$ #e"eal si4nifican insi4h s in o he s #a e4$ an( efficienc$ of he o)e#a ion& The )#ofi ma#4in on sales )e#cen a4e ;a #a io in i s o2n #i4h < is es)eciall$ im)o# an (ue o he si-e of he cos of 4oo(s sol( e0)ense ca e4o#$ an( i s "ulne#a'ili $ o o)e#a in4 inefficiencies an( com)e i i"e fo#ces& A sli))a4e of %> o# *>, o# e"en ?&%>, in 4#oss )#ofi can make a la#4e (iffe#ence o #e u#ns ea#ne(&

$atio analysis Financial #a io anal$sis is he calcula ion an( com)a#ison of #a ios 2hich a#e (e#i"e( f#om he info#ma ion in a com)an$@s financial s a emen s& Aa io anal$sis is "e#$ useful fo# use#s of financial s a emen info#ma ion, fo# e0am)le5 The$ facili a e in e#!com)an$ com)a#ison7 The$ (o2n)la$ he im)ac of si-e an( allo2 e"alua ion o"e# ime o# ac#oss en i ies 2i hou un(ue conce#n fo# he effec s of si-e (iffe#ence7 The$ se#"e as 'enchma#ks fo# a#4e s such as financin4 #a ios an( (e' 'u#(en7 The$ hel) )#o"i(e an info#me( 'asis fo# makin4 in"es men !#ela e( (ecisions '$ com)a#in4 an en i $9s financial )e#fo#mance o ano he#&

This lesson classifies #a ios in o fi"e anal$ ical 4#ou)s, 2hich a#e5 %rofitability analysis ratios, 2hich sho2 ho2 successful a com)an$ is in e#ms of 4ene#a in4 #e u#ns o# )#ofi s on he In"es men ha i has ma(e in he 'usiness& If a 'usiness is Li/ui( an( Efficien i shoul( also 'e ,#ofi a'le& Main )#ofi a'ili $ anal$sis #a ios5 Return on Sales or Profit Margin (%)5 The ,#ofi Ma#4in of a com)an$ (e e#mines i s a'ili $ o 2i hs an( com)e i ion an( a("e#se con(i ions like #isin4 cos s, fallin4 )#ices o# (eclinin4 sales in he fu u#e& The #a io measu#es he )e#cen a4e of )#ofi s ea#ne( )e# (olla# of sales an( hus is a measu#e of efficienc$ of he com)an$& The fo#mula5 Ae u#n on Sales o# ,#ofi Ma#4in B ;Ne ,#ofi 8 Ne Sales< 0 %??

Return on Assets: The Ae u#n on Asse s of a com)an$ (e e#mines i s a'ili $ o u ili-e he Asse s em)lo$e( in he com)an$ efficien l$ an( effec i"el$ o ea#n a 4oo( #e u#n& The #a io measu#es he )e#cen a4e of )#ofi s ea#ne( )e# (olla# of Asse an( hus is a measu#e of efficienc$ of he com)an$ in 4ene#a in4 )#ofi s on i s Asse s& The fo#mula5

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

Ae u#n on Asse s B ;Ne ,#ofi 8 To al Asse s< 0 %?? $eturn on & uity or 'et (orth) The Ae u#n on E/ui $ of a com)an$ measu#es he a'ili $ of he mana4emen of he com)an$ o 4ene#a e a(e/ua e #e u#ns fo# he ca)i al in"es e( '$ he o2ne#s of a com)an$& Gene#all$ a #e u#n of %?> 2oul( 'e (esi#a'le o )#o"i(e (i"i(en(s o o2ne#s an( ha"e fun(s fo# fu u#e 4#o2 h of he com)an$ The fo#mula5 Ae u#n on E/ui $ o# Ne Co# h B ;Ne ,#ofi 8 Ne Co# h o# O2ne#s E/ui $< 0 %?? Ne Co# h o# O2ne#s E/ui $ B To al Asse s ;minus< To al Lia'ili $

!ctivity analysis *efficiency analysis+ ratios , 2hich a#e #a ios ha come off he he Balance Shee an( he Income S a emen an( he#efo#e inco#)o#a e one ($namic s a emen , he income s a emen an( one s a ic s a emen , he 'alance shee & These #a ios a#e im)o# an in measu#in4 he efficienc$ of a com)an$ in ei he# u#nin4 hei# in"en o#$, sales, asse s, accoun s #ecei"a'les o# )a$a'les& I also ies in o he a'ili $ of a com)an$ o mee 'o h i s sho# e#m an( lon4 e#m o'li4a ions& Main ac i"i $ anal$sis #a ios an( he fo#mula5 DSO (Days Sales Outstanding)5 The Da$s Sales Ou s an(in4 #a io sho2s 'o h he a"e#a4e ime i akes o u#n he #ecei"a'les in o cash an( he a4e, in e#ms of (a$s, of a com)an$@s accoun s #ecei"a'le& The #a io is #e4a#(e( as a es of Efficienc$ fo# a com)an$& The effec i"eness 2i h 2hich i con"e# s i s #ecei"a'les in o cash& This #a io is of )a# icula# im)o# ance o c#e(i an( collec ion associa es& The fo#mula5 Ae4ula# DSO B ;To al Accoun s Aecei"a'les8To al C#e(i Sales< 0 Num'e# of Da$s in he )e#io( ha is 'ein4 anal$-e(

Inventory Turnover ratio5 This #a io is o' aine( '$ (i"i(in4 he @To al Sales@ of a com)an$ '$ i s @To al In"en o#$@& The #a io is #e4a#(e( as a es of Efficienc$ an( in(ica es he #a)i(i $ 2i h 2hich he com)an$ is a'le o mo"e i s me#chan(ise& The fo#mula5 In"en o#$ Tu#no"e# Aa io B Ne Sales 8 In"en o#$ I coul( also 'e calcula e( as5 In"en o#$ Tu#no"e# Aa io B Cos of Goo(s Sol( 8 In"en o#$

Accounts Payable to Sales (%)5 This #a io is o' aine( '$ (i"i(in4 he @Accoun s ,a$a'les@ of a com)an$ '$ i s @Annual Ne Sales@& This #a io 4i"es $ou an in(ica ion as o ho2 much of hei#

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

su))lie#s mone$ (oes his com)an$ use in o#(e# o fun( i s Sales& =i4he# he #a io means ha he com)an$ is usin4 i s su))lie#s as a sou#ce of chea) financin4& The 2o#kin4 ca)i al of such com)anies coul( 'e fun(e( '$ hei# su))lie#s& The fo#mula5 Accoun s ,a$a'les o Sales Aa io B DAccoun s ,a$a'les 8 Ne Sales E 0 %??

Li uidity analysis ratios, 2hich hel) anal$-e a com)an$@s a'ili $ o 4ene#a e cash o# o he# hi4hl$ li/ui( asse s in o#(e# o e0 in4uish (e' o# alloca e #esou#ces& These #a ios a#e im)o# an in measu#in4 he a'ili $ of a com)an$ o mee 'o h i s sho# e#m an( lon4 e#m o'li4a ions& Main li/ui(i $ #a ios an( he fo#mula5

urrent Ratio5 This #a io is o' aine( '$ (i"i(in4 he @To al Cu##en Asse s@ of a com)an$ '$ i s @To al Cu##en Lia'ili ies@& The #a io is #e4a#(e( as a es of li/ui(i $ fo# a com)an$& I e0)#esses he @2o#kin4 ca)i al@ #ela ionshi) of cu##en asse s a"aila'le o mee o'li4a ions& The fo#mula5 Cu##en Aa io B To al Cu##en Asse s8 To al Cu##en Lia'ili ies he com)an$@s cu##en

!uic" Ratio5 This #a io is o' aine( '$ (i"i(in4 he @To al Fuick Asse s@ of a com)an$ '$ i s @To al Cu##en Lia'ili ies@& Some imes a com)an$ coul( 'e ca##$in4 hea"$ in"en o#$ as )a# of i s cu##en asse s, 2hich mi4h 'e o'sole e o# slo2 mo"in4& Thus elimina in4 in"en o#$ f#om cu##en asse s an( hen (oin4 he li/ui(i $ es is measu#e( '$ his #a io& The #a io is #e4a#(e( as an aci( es of li/ui(i $ fo# a com)an$& I e0)#esses he #ue @2o#kin4 ca)i al@ #ela ionshi) of i s cash, accoun s #ecei"a'les, )#e)ai(s an( no es #ecei"a'les a"aila'le o mee o'li4a ions& The fo#mula5 Fuick Aa io B To al Fuick Asse s8 To al Cu##en Lia'ili ies Fuick Asse s B To al Cu##en Asse s ;minus< In"en o#$ he com)an$@s cu##en

Long,term debt,paying ability analysis ratios, 2hich measu#e he (e4#ee of )#o ec ion of su))lie#s of lon4! e#m fun(s an( can also ai( in 3u(4in4 a fi#m9s a'ili $ o #aise a((i ional (e' an( i s ca)aci $ o )a$ i s lia'ili ies on ime& Main ac i"i $ anal$sis #a ios an( he fo#mula5 Total Debts to Assets5 ,#o"i(es info#ma ion a'ou he com)an$9s a'ili $ o a'so#' asse #e(uc ions a#isin4 f#om losses 2i hou 3eo)a#(i-in4 he in e#es of c#e(i o#s The fo#mula5

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

To al (e' s o asse s B To al Asse s8 To al Lia'ili ies Debt to #$uity:In(ica es ho2 2ell c#e(i o#s a#e )#o ec e( in case of he com)an$9s insol"enc$& The fo#mula5 De' o e/ui $ B To al (e' 8 To al e/ui $ In e#es Co"e#a4e Aa io ;Times In e#es Ea#ne(<5In(ica es a com)an$9s ca)aci $ o mee in e#es )a$men s& Uses EBIT ;Ea#nin4s Befo#e Income an( Ta0es<& The fo#mula5 In e#es Co"e#a4e Aa ioBEBIT8In e#es E0)ense -ar.et Strength ratios, 2hose calcula ion is 'ase( on ma#ke )#ice& Ma#ke )#ice )#o"i(es info#ma ion a'ou ho2 in"es o#s "ie2 he )o en ial #e u#n an( #isk connec e( 2i h o2nin4 he com)an$@s s ock& Bu ma#ke )#ice '$ i self is no "e#$ info#ma i"e& Ma#ke )#ice mus 'e #ela e( o ea#nin4s '$ consi(e#in4 he )#ice8ea#nin4s #a io an( he (i"i(en(s $iel(& Price%#arnings ratio, 2hich is he #a io of ma#ke )#ice )e# sha#e o ea#nin4s )e# sha#e an( useful fo# com)a#in4 he "alue )lace( on a com)an$9s sha#es in #ela ion o he o"e#all ma#ke & Dividends yield, 2hich measu#es a s ock9s cu##en #e u#n o an in"es o# in he fo#m of (i"i(en(s&

! comprehensive analysis) Dupond !nalysis Ae u#n on e/ui $ ;AOE< is one of he mos im)o# an in(ica o#s of a fi#m9s )#ofi a'ili $ an( )o en ial 4#o2 h& Com)anies ha 'oas a hi4h #e u#n on e/ui $ 2i h li le o# no (e' a#e a'le o 4#o2 2i hou la#4e ca)i al e0)en(i u#es, allo2in4 he o2ne#s of he 'usiness o 2i h(#a2al cash an( #ein"es i else2he#e& Man$ in"es o#s fail o #eali-e, ho2e"e#, ha com)anies can ha"e he same #e u#n on e/ui $, $e one can 'e a much 'e e# 'usiness The#e a#e h#ee com)onen s in he calcula ion of #e u#n on e/ui $ usin4 he #a(i ional Du,on mo(el7 he ne )#ofi ma#4in, asse u#no"e#, an( he e/ui $ mul i)lie#& B$ e0aminin4 each in)u in(i"i(uall$, 2e can (isco"e# he sou#ces of a com)an$@s #e u#n on e/ui $ an( com)a#e i o i s com)e i o#s& The ne )#ofi ma#4in is sim)l$ he af e#! a0 )#ofi a com)an$ 4ene#a e( fo# each (olla# of #e"enue& Ne )#ofi ma#4ins "a#$ ac#oss in(us #ies, makin4 i im)o# an o com)a#e a )o en ial in"es men a4ains i s com)e i o#s& The asse u#no"e# #a io is a measu#e of ho2 effec i"el$ a com)an$ con"e# s i s asse s in o sales& The asse u#no"e# #a io en(s o 'e in"e#sel$ #ela e( o he ne )#ofi ma#4in7 i&e&, he hi4he# he ne )#ofi ma#4in, he lo2e# he asse u#no"e#& The #esul is ha he in"es o# can com)a#e com)anies usin4 (iffe#en mo(els ;lo2!)#ofi , hi4h!"olume "s& hi4h! )#ofi , lo2!"olume< an( (e e#mine 2hich one is he mo#e a #ac i"e 'usiness& I is )ossi'le fo# a 2o

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

com)an$ 2i h e##i'le sales an( ma#4ins o ake on e0cessi"e (e' an( a# ificiall$ inc#ease i s #e u#n on e/ui $& The e/ui $ mul i)lie#, a measu#e of financial le"e#a4e, allo2s he in"es o# o see 2ha )o# ion of he #e u#n on e/ui $ is he #esul of (e' &

/alculation of $eturn on & uity To calcula e he #e u#n on e/ui $ usin4 he Du,on mo(el, sim)l$ mul i)l$ he h#ee com)onen s ;ne )#ofi ma#4in, asse u#no"e#, an( e/ui $ mul i)lie#&< Ae u#n on E/ui $ B ;Ne ,#ofi Ma#4in< ;Asse Tu#no"e#< ;E/ui $ Mul i)lie#<

Some discussion about financial statement analysis

Financial s a emen anal$sis can )#o"i(e meanin4ful insi4h in o he s #a e4$, mana4emen , an( o)e#a ion of a fi#m& I can also Gno )#o"i(e useful info#ma ionH '$ )#o(ucin4 an o"e#a'un(ance of (a a& Befo#e anal$sis s a# s, he follo2in4 /ues ions mus 'e ans2e#e(5 Cha is he )u#)ose of he anal$sisI C#e(i an( in"es men (ecisions 2ill focus on (iffe#en a#eas& Cha 'usiness is he com)an$ inI Cha is 4oin4 on in he in(us #$ an( in he econom$ in 4ene#alI Cha is 4oin4 on in he com)an$ #i4h no2I Info#ma ion ma$ 'e a"aila'le f#om he financial )#ess o# (i#ec l$ f#om he com)an$& Cha s #a e4$ (oes his fi#m use o com)e e in he in(us #$I A#e he#e "a#ia'les im)o# an o success ha he financial s a emen s (o no ca) u#eI A#e he#e e"en s #eflec e( in he financial s a emen s J such as chan4es in accoun in4 )#inci)les, chan4es in s #a e4$, unusual o# non#ecu##in4 fac o#s J ha shoul( 'e fac o#e( ou 'efo#e #a ios a#e calcula e(I Is his fi#m com)a#a'le o in(us #$ a"e#a4es, o# a#e he#e (iffe#ences in accoun in4 )olic$, a"e#a4e si-e, o# s #a e4$ ha 2ill in"ali(a e com)a#isonI A he same ime, anal$s s mus 'e a2a#e ha he a'o"e echni/ues a#e no a'solu e measu#es of )e#fo#mance& The$ 2o#k 'es 2hen he$ a#e use( o confi#m o# #efu e o he# info#ma ion& Chen usin4 anal$ ical ools o e"alua e a com)an$, he anal$s shoul( kee) in min( he limi a ions of anal$sis, fo# e0am)le5 No all info#ma ion a'ou a com)an$ is #e)o# e( in he financial s a emen s& Fo# e0am)le, he effec of a chan4e in he fu u#e ma#ke )#ice of he fi#m9s )#o(uc , fu u#e echnolo4ical chan4e, he s #en4 h of ma#ke in4 o# )#o(uc ion s aff, he effec of 4o"e#nmen ac ion, an(

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

union ac i"i ies a#e no likel$ o 'e #eflec e( in he num'e#s& The anal$s mus o' ain info#ma ion a'ou such fac o#s f#om o he# sou#ces, such as he financial )#ess& Aa ios an( o he# measu#emen s a#e 'ase( on )as )e#fo#mance, #e)o# e( on he his o#ical cos 'asis& If he cu##en "alue of a fi#m9s asse s is si4nifican l$ (iffe#en f#om his o#ical cos s, o# if in an4i'le asse s a#e si4nifican , #a io anal$sis ma$ no $iel( a fai# assessmen of he com)an$9s )e#fo#mance o# con(i ion& E"en 2i hin he same in(us #$, (iffe#en com)anies ma$ use (iffe#en accoun in4 )olicies& Fo# e0am)le, in"en o#$ "alua ion ma$ 'e 'ase( on LIFO, FIFO, o# a"e#a4e cos , an( amo# i-a ion ma$ 'e calcula e( usin4 he s #ai4h !line me ho( o# an accele#a e( me ho(& The anal$s shoul( #ea( he no es o he financial s a emen s o (e e#mine a com)an$9s accoun in4 )olicies an( hen a(3us fo# an$ (iffe#ences in accoun in4 )olic$ 'efo#e a em) in4 o com)a#e #esul s 2i h o he# fi#ms in he same in(us #$& The )as ma$ no )#e(ic he fu u#e& Al hou4h #a io anal$sis suffe#s f#om he limi a ions of accoun in4 info#ma ion, a ca#eful an( sensi'le anal$s shoul( 'e a'le o o' ain a clea# )ic u#e of he com)an$9s o)e#a ions an( )#o"i(e useful info#ma ion o in"es o#s an( c#e(i o#s& Summary

Use#s of financial s a emen s of en 4ain a clea#e# )ic u#e of he economic con(i ion of an en i $ '$ he anal$sis of accoun in4 info#ma ion& The anal$ ical measu#es o' aine( f#om financial s a emen s a#e usuall$ e0)#esse( as #a ios o# )e#cen a4es& Financial anal$sis echni/ues 2o#k 'es 2hen he$ a#e use( o confi#m o# #efu e o he# info#ma ion& Chen usin4 anal$ ical ools o e"alua e a com)an$, he anal$s shoul( kee) in min( he limi a ions of anal$sis& 0ey points %& Aa io anal$sis of financial info#ma ion& *& Limi a ions of financial s a emen anal$sis& $eading material 1. ,hili) E& Fess an( Ca#l S& Ca##en, Accoun in4 ,#inci)les, Sou h!Ces e#n ,u'lishin4 Co&, %KLM& 2. Beech$, Thomas =&, an( Con#o(, Noan E&D&, In e#me(ia e Accoun in4, McG#a2!=ill, A$e#son Limi e(, *??+&

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Ya !sen Uni"e#si $

3. 4.

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