财务会计理论(司可脱)PPT文件02_scott_im_ch02.pptVIP

Chapter 2Accounting Under Ideal Conditions  Ideal Conditions of Certainty Assumptions Known future cash receipts Given interest rate Basis of Accounting Present value Ideal Conditions of Certainty, Cont’d Income Recognition As changes in present value occur Ideal Conditions of Uncertainty Assumptions States of nature Known set Realization publicly observable State probabilities objective publicly known Given interest rate Ideal Conditions of Uncertainty, Cont’d Basis of Accounting Expected present value Income Recognition As changes in expected present value occur Ideal Conditions of Uncertainty- Example You pay $100 to a bank to buy a 2-year investment which pays in each year $73.02 with prob. = 0.5 and $33.02 with prob. = 0.5. The interest rate in the economy is 4%. Example, Cont’d PA0 = [.5(73.02) + .5(33.02)]/1.04 + [.5(73.02) + .5(33.02)]/(1.04)2 = (36.51 + 16.51)/1.04 + (36.51 + 16.51)/(1.04)2 = 53.02/1.04 + 53.02/1.0816 = 50.98 + 49.02 = $100.00 NB: Risk-Neutral Valuation Example, Cont’d Assume at End of Year 1, you Receive $73.02 PA1 = 73.02 + [.5(73.02) + .5(33.02)]/1.04 = 73.02 + 50.98 = $124 Example, Cont’d Net Income for the Year Sales less amortization format 73.02 - (100 - 50.98) = 73.02 - 49.02 = $24 Alternative format 100 x .04 + (24 - 4) = 4 + 20 = $24 Change in balance sheet net assets 124 - 100 = $24 Lack of Ideal Conditions Problems when conditions not ideal State probabilities are subjective, not objective Incomplete markets Definition of Incompleteness Reasons for Incompleteness thin markets information asymmetry Implications of Lack of Ideal Conditions Need for Estimates (quantities, prices, timing) of states of nature Need for Estimates of State Probabilities Market Value Need Not Equal Present Value True Net Income Does Not Exist Implication