Financial Accounting Ch12

$ , 0 ! . 6)"-

5A@FDA>

GHG>MA:GI>KGMH?MA>HNMLM:G=BG@LH?:GHMA>KI:K>GMQM>KG:EK>IHKMBG@INKIHL>LMA>`G:G=MH?HKF:LBG@E>L>MH?`G:GF>GML

*0)/$)"!*-$)1 ./( )/.$)/-$)". 0-$/$ .

" ( $ $ % * , )

MMA>>G=H?MABLL>GMLLAHNE=;>:;E>MHF>>MMA>?HEEHPBG@H;C>L

(73>;L7F:3FF:7R@3@5;3>D7BADF;@9A8;@H7EF?7@FE;@F:7AI@7DE:;BE:3D7EA83@AF:7D5A?B3@K67B7@6EA@F:7BGDBAE7A8F:735CG;E;F;A@

JB>3;@F:75:3D35F7D;EF;5EA8;@H7EF?7@FEF:3F3D75>3EE;R763EFD36;@9E75GD;F;7E 55AG@F8AD5:3@97E;@F:7H3>G7A8;@H7EF?7@FE;@FD36;@9E75GD;F;7E3@6G@67DEF3@6F:7D3

F;A@3>78ADF:;E:3@6>;@9 (75AD66;H;67@6ED757;H768DA?;@H7EF?7@FEF:3F3D75>3EE;R763EFD36;@9E75GD;F;7E 7F7D?;@7F:793;@AD>AEEFA47D75AD676A@F:7E3>7A83FD36;@9E75GD;FK

/@=-=9KGFK2@Q*F=GEH9FQMQK*OF=JK@AH.@9J=KG>FGL@=J

(G7EF;A@ GE;@7EE7E 8D7CG7@F>K 35CG;D7 AI@7DE:;B E:3D7E A8F7@ D787DD76 FA 3E 7CG;FK AD 53B;F3> E:3D7E A8AF:7D 5A?B3@;7E &@ *7BF7?47D 2,;8AE76 F:3F ;F :7>6 R7CG;FK 3@6 AF:7D ;@H7EF?7@FESD7BADF76 3F @73D>K 4;>>;A@ $3@K EG5: ;@H7EF?7@FE 3D7 A@>K ?367 FA 35CG;D7 3 E?3>> B7D57@F397 A8 F:7AI@7DE:;B AI7H7D F:3F ;E @AF 3>I3KE F:7 53E7 @ BD;> 817;A@ BGD5:3E7 A8 *I;EE ?76;53> 67H;57 ?3=7D #B7=1.< 7, .:7F:7D 3 87I E:3D7E 3D7 4AG9:F AD F:7 7@F;D7 5A?B3@K ;E 4AG9:F EG5: ;@H7EF?7@FE AU7D ?3@K BAF7@F;3> 47@7VFE'1*= *;. =1. 689DDK OAL@AF GF= G> K=N=J9D E=L@GGJ L@=AFN=KLE=FL

GEH9FA=K >J=IM=FLDQ _F< L@9L L@=Q 9J= @GD GL@=J GJ?9FAR9LAGFK /@= @GH= AK L@9L L@= E9J

C=L HJA;= G> L@=K= K@9J=K OADD 9HHJ=;A9L= AF N9DM= 9F

FD36;@9E75GD;F;7E

E:LLB`LMF>GMLBGLMHGF:G:@>F>GMZLBGM>GMBHGL:K>MHL>EEMA>FJNBG>:KM>KFMA>R:K>K>IHKM>=:L:LL>MLHGMA>;:E:GLA>>M:M?:BKO:EN>PBMA:EELBGO:EN>:_>MBG

/J9 6;U7D7@F D73EA@E 7J;EF 8AD 4GK;@9 53B;F3> EFA5=BB>;534>7 355AG@F;@9 DG>7E 53@ 47EF 47 67?A@EFD3F76 4K 8A5GE;@9 A@ A@7 A8 F:7E7 FKB7E A8 ;@H7EF?7@FE 3F3F;?7

EEG?7 F:3F -3>7@F7 ADBAD3F;A@ ;E :A>6;@9 ;@ 53E: F:3F ;F I;>> @AF @776 8AD E7H7D3> I77=E+:;E ?A@7K ;E 5GDD7@F>K ;@ 3 ?A@7K ?3D=7F 8G@6 73D@;@9 A@>K 3 B7D57@F 3@@G3> D3F7 A8 D7FGD@ @ :AB7EA8 97@7D3F;@9 3 :;9:7D BDAVF F:7 BD7E;67@F A8 -3>7@F7 :3E EFG6;76 F:7 V@3@5;3> EF3F7?7@FE A8 3K>7EE ADBAD3F;A@ 3 5A?B3@K I;F: 53B;F3> EFA5= FD36;@9 A@ F:7 %7I 0AD= *FA5= J5:3@97 8AD B7D E:3D7 K%AH7?47D 073D &@7 F:7 BD7E;67@F :3E 5A?7 FA 47>;7H7 F:3F 3K>7EE EFA5= I;>> ?3=7 3 D3F:7D E;9@;V53@F K -3>7@F7 GE7E F:7 FA 35CG;D7 A@7F:AGE3@6 E:3D7E A8 EFA5= ;@ 3K>7EE F:3F I;>> 47 :7>6 8AD A@>K 3 87I I77=E AD ?A@F:E 8@ -8.< * ,869*7B ;.98;= *7 .:>2=B 27?.01= @2=1 =1. .A9.,=*=287 =1*= =1.

G@D73>;L7693;@AD>AEE

@:BGHKEHLL:M>=;R:GBG:L>HK=>:L>BGMA>O:EN>H?:G:LL>M:EMAHN@AGHMR>M`G:EBS>=;R:L:E>

+( ):3D7EA83K>7EE3*D36;@9)75GD;FK6G73F@6A8/73D%@7

/@= ?9AF @=J= AK D9:=D=< 9K =6:-)41B-, LG AF L@= 9KK=L @9K 9HHJ=;A9L=< :ML FG _F

9D K9D= @9K Q=L L9C=F HD9;= /@=J=>GJ= L@= ?9AF AK FGL ?M9J9FL== BL >:LR MH =>M>KFBG> :G=MA>;:E:GLA>>M=:M>

-=HGJLAF?/J9CG7EF;A@ F:3F :3E >A@9 477@ 6743F76 ;@ V@3@5;3> 355AG@F;@9 E D75A9@;L;@9 3 93;@ ;@ F:7 H3>G7 A8 3 FD36;@9 E75GD;FK AD 3 >AEE ;8 F:7 EFA5= BD;57 :3E 675>;@76 A@ F:7 AI@7DQE ;@5A?7 EF3F7?7@F 3BBDABD;3F7 478AD73@ 35FG3> E3>7 F3=7E B>357 @ F:;E ;>>GEFD3F;A@ 8AD 7J3?B>7 3 93;@ ;E D7BADF76 4GF F:7 H3>G7 A8F:7E7 E:3D7E ?;9:F EG667@>K B>G??7F 3@6 7>;?;@3F7 F:3F 93;@ BD;AD FA 3 E3>7 +:7 93;@ ?;9:F @7H7D 47 D757;H76 @ BD7H;AGE 5:3BF7DE 3EE7FE EG5: 3E 4G;>6;@9E 3@6 ;@H7@FADK I7D7 @7H7D 36G7 G@>7EE ;?B3;D?7@F :36 F3=7@ B>357 '1B 2< *7 27?..;.0*;-5.

!GJ L@=K= J=9KGFK 0. "+ J=IMAJ=K L@9L AFN=KLE=FLK AF LJ99AJ N9DM=

AF L@AK =P9EHD= /@=J=>GJ= 19D=FL= OADD J=HGJL :GL@ L@=

H=JAG< G> LAE= /@=F AF 4=9J /OG 9 DGKK G>

AK J=HGJL=< :=;9MK= L@= KLG;C HJA;= >=DD :Q L@9L9EGMFLHJAGJLG:=AF?KGD

3H3;>34>78ADE3>7E75GD;F;7E

GMZLBGM>GMBHGL:K>MHK>M:BGMA>F?HK:GBG=>`GBM>I>KBH=MA>R:K>K>IHKM>=HGMA>;:E:GLA>>M:M?:BKO:EN>:EMAHN@ANGK>:EBS>=@:BGL:G=EHLL>L:K>BG=BGLMHKLZ>JNBMR:G=GHMPBMABGG>MBG

*0)/$)"!*-$)1 ./( )/.$). 0-$/$ ./#/- '..$!$ .1$'' !*-.'

" ( $ $ % * , )


67@F;8KF:7FKB7EA8;@H7EF?7@FE5>3EE;R763E3H3;>34>78ADE3>7

(75AD6F:7D757;BFA86;H;67@6E8DA?3@;@H7EF?7@FF:3F;EH;7I763E3H3;>34>78ADE3>7 JB>3;@F:7R@3@5;3>D7BADF;@9A85:3@97E;@F:783;DH3>G7A8;@H7EF?7@FE;@3H3;>34>78ADE3>7

E75GD;F;7E 3>5G>3F7F:793;@AD>AEEFA47D7BADF76I:7@3H3;>34>78ADE3>7E75GD;F;7E3D77H7@FG3>>KEA>6 +@67DEF3@6F:7@7768ADD7BADF;@95A?BD7:7@E;H7;@5A?73EI7>>3E@7F;@5A?7 JB>3;@F:736> ;@H7EF?7@FE ;@ EFA5= 3D7 4AG9:F 8AD CG;5= E3>7 EEG?7 F:3F -3>7@F7 ADBAD3F;A@ 4AG9:FA@7 F:AGE3@6 E:3D7E A8 3K>7EE ADBAD3F;A@ 8AD 735: ;@ 073D &@7 4GF 6A7E @AF 3@F;5;B3F7 E7>>;@9 F:;E;@H7EF?7@F ;@ F:7 @73D F7D? A?B3@K AX5;3>E ;@F7@6 FA :A>6 F:7E7 E:3D7E 8AD F:7 8AD7E7734>7 8GFGD7 G@F;>F:7 ?A@7K ;E 5>73D>K @77676 >F:AG9: F:7 EFA5= 5AG>6 47 EA>6 3F 3@K F;?7 F:7 BD7E;67@F A8 -3>7@F7 47>;7H7E F:7 ;@H7EF?7@F ?;9:F I7>> 47 D7F3;@76 8AD K73DE GD;@9 073D &@7 3 53E: 6;H;67@6 ;E D757;H768DA? F:7 3K>7EE E:3D7E F F:7 7@6 A8 F:3F B7D;A6 F:7 EFA5= ;E E7>>;@9 8AD B7D E:3D7 8@ -8.< =1. -.,22=B

355G?G>3F76AF:7D5A?BD7:7@E;H7;@5A?7

L>LMHKLZ>JNBMRH?:;:E:GLA>>MPA>K>NGK>:EBS>=@:BGL:G=EHLL>LHG:O:BE:;E>?HKL:E>L>L:LP>EE:L:?>PHMA>KLI>=@:BGL:G=EHLL>L:K>LAHPGK:MA>KMA:G;>BG@IK>L>GM>=HGMA>K>IHKMBG@F>GM

+( ):3D7EA83K>7EE3@H3;>34>78AD)3>7)75GD;FKD76G73F@6A8/73D%@7

;;MEMD9L=;L7693;@ E:AI@ ;@ ;9GD7 ;E @AF BD7E7@F76 A@ F:7 ;@5A?7 EF3F7?7@F I:7D7 ;E F:3F 3?AG@F D7BADF76 4K F:7AI@7D 8@*;.,1*70..8/*?*25*+5./8; 9N9AD9:D=>GJK9D= K@9J=KOADD HGKKA:DQ ?G MH 9F< GJ= :=AF? KGD L@AK MF;=JL9AFLQ 9 ;@9F?= AF L@= GOF=JXK J=HGJL=< F=L AF;GE= AK FGL;GFKAGJK9D= AK J=HGJL=< OAL@AF L@= KLG;C@GD L@= :9D9F;= K@==L /@= _?MJ= AK DAKL==O GL@=J MFJ=9DAR=< ?9AFK 9F< DGKK=K 9J=@9FG6;@955G?G>3F76%F:7DA?BD7:7@E;H7@5A?7

GFK=IM=FLDQ L@= HJAE9JQ GJ LJ9GJK9D=K=;MJALA=KAKAFL@=HD9;=E=FLG>MFJ=9DAR=LJ9GJK9D=K=;MJALA=K9J=K@GOFAFKLG;C@GD

* ) * / % + ( ) "

'G7EF;A@

HFI:GR ;NRL LA:K>L H? : P>EEDGHPG :K +G> ?HK HFI:GR HbLMF>GM ?HK HGER : LAHKM I>KBH= H? MBF> LH MA:M BM BL = :L : MK:=BG@ L>L MA> L:F> BGO>LMF>GM :M MA> L:F> MBF> ?HK MA> L:F> O>K HFI:GR HbQI>L> LA:K>L BG=>`GBM>ER HFI:GR K>IHKML MABL BGO>LMF>GM :L :O:BE:;E>?HKL:E> :G= =H>L GHM >E>IHKM BM BG MA> L:F> F:GG>K :L : MK:=BG@ L>BK BGO>LMF>GML :M MA>>G=H?MA>R>:KPA>GMA>R:K>>:

: HMALPBEEK>IHKMMA>BKBGO>LMF>GM:M; *>MBGPBEEBG:L>FHK>?HKHFI:GRMA:G?HKHFI:GR;>H?MA>L>BGO>LMF>GML< HFI:GRK>IHKMLHMA>K:GLBO>BGHGMA> >F;>K5>:K+G>;:E:G

LA>>MH?= HFI:GRK>IHKMLHMA>K:GLBO>BGHGMA> >F;>K5>:K+G>;:E:G

LA>>MH?

@EI7D

0A> K BL K :GLBO> BG HG MA> >F;>K5>:K+G>;:E:GLA>>MH?

JB>3@3F;A@

HMA L K>IHKM MA> :LL>M :L BML ?:BK O:EN> :M MA> >G= H? MA> R>:K HFI:GR OB>PL MA>L>LA:K>L :L MK:=BG@ L>L LH MA:M MA> BG:L> BG O:EN> H? BL K>IHKM>= :L :G NGK>:EBS>= @:BG BG G>M BG

$HP>O>K HFI:GR A:L = MA> BGO>LMF>GM :L :O:BE:;E>?HKL:E> 0ANL MA> NGK>:EBS>=@:BG BL GHM LAHPG PBMABG G>M BG ;NM K:MA>K BG LMHKLZ >JNBMR :L [HMA>K :GLBO>BG\

/@=.9D=G>N9AD9:D=!GJ.9D=.=;MJALA=K

(G7EF;A@ EEG?7 F:3F -3>7@F7 6;6 @AF 5:AAE7 FA D7BADF F:7 3H3;>34>78ADE3>7 ;@H7EF?7@F 3E 3 FD36;@9 E75GD;FK 4GF D3F:7D 4K ?73@E A8 F:7 FD36;F;A@3> 3BBDA35: +:GE F:7 G@D73>;L76 93;@ 5D73F76 4K F:73BBD75;3F;A@ A8 H3>G7 ;E D7BADF76 I;F:;@ EFA5=:A>67DEQ 7CG;FK 3F F:7 7@6 A8 073D &@7 @ 073D +IA F:7E7E:3D7E 3D7 EA>6 A@ F:7 EFA5= 7J5:3@97 8AD .:3F D7BADF;@9 ;E ?367 3F F:3F F;?7 8@ 2< =1. .?.7=>*5

5A?BD7:7@E;H7;@5A?7

*>MBGIENL:GRNGK>:EBS>=@:BGL:G=E>LL:GRNGK>:EBS>=EHLL>LMA:M:II>:KBGLMHKLZ>JNBMRK:MA>KMA:GPBMABGG>MBG

* ) * / % + ( ) "

'G7EF;A@

HFI:GR ;NRL HPG>KLABI LA:K>L H? : P>EEDGHPG :K +G> :G= L MA> :LL>M:L :G BGO>LMF>GM BG MK:=BG@ L>L HFI:GR :ELH ;NRL LA:K>L H? MABL L:F> =:M> ?HK $HP>O>K MA> BGO>LMF>GM BL K>IHKM>= ;R MABL HPG>K :L :O:BE:;E>?HKL:E> HFI:GR =H>L GHM >E>IHKM MABL BGO>LMF>GM BG MA> L:F> F:GG>K :L : MK:=BG@ L>LMF>GML :K> PHKMA :M MA>>G=H?5>:K+G>HMABGO>LMF>GML:K>LHE=BG5>:K0PH?HK3AB?HEEHPBG@BLMKN>

: HFI:GRK>IHKML:;B@@>K@:BGHGBMLBGLM:M>F>GMBG5>:K+G>MA:G=H>LHFI:GR; HFI:GRK>IHKML:;B@@>KEHLLHGBMLBGLM:M>F>GMBG5>:K0PHMA:G=H>LHFI:GR< HFI:GRK>IHKML:;B@@>KEHLLHGBMLBGLM:M>F>GMBG5>:K+G>MA:G=H>LHFI:GR= HFI:GRK>IHKML:;B@@>KEHLLHGBMLBGLM:M>F>GMBG5>:K0PHMA:G=H>LHFI:GR

@EI7D

0A> K BL IHKML : ;B@@>K EHLL HG BML BG LM:M>F>GM BG 5>:K 0PH MA:G=H>LHFI:GR

JB>3@3F;A@

HFI:GR K>IHKML : MK:=BG@ L> BG:L> BG O:EN> BL :G BG LM:M>F>GM @:BG BG 5>:K +G>0A> =KHI BG O:EN> BL :G BG LM:M>F>GM EHLL BG 5>:K 0PH > HFI:GR K>IHKML MA>L> LA:K>L:L :O:BE:;E>?HKL:E> GH BG >_>= BG 5>:K +G> %G 5>:K 0PH MA> =B_>K>G ;>MP>>GBO>= BL : EHLL HG MA> BG LM:M>F>GM 0A> @:BG K>IHKM>= ;R HFI:GR BL E:K@>K BG5>:K+G>;NMMA>EHLLK>IHKM>=;RHFI:GRBLE:K@>KBG5>:K0PH

/@=-=HGJLAF?G>GEHJ=@=FKAN=$F;GE=

(G7EF;A@ @ 073D &@7 -3>7@F7QE ;@H7EF?7@F ;@ F:7 E:3D7E A8 3K>7EE ADBAD3F;A@ DAE7 ;@ H3>G7 4K E 6;E5GEE76 73D>;7D ;8 F:AE7 E75GD;F;7E 3D7 5>3EE;V76 3E 3H3;>34>78ADE3>7 F:7 G@D73>;L76 93;@ 6A7E @AF ;?B35F D7BADF76 @7F ;@5A?7 4GF D3F:7D EFA5=:A>67DEQ 7CG;FK +:;E :3@6>;@9 ;E 5:3@97E ;@ H3>G7 4AF: ;@5D73E7E 3@6 675D73E7E 3D7 >;=7>K FA F3=7 B>357 BD;AD FA F:7 7H7@FG3>E3>7A8F:7;@H7EF?7@F

E 3 D7EG>F F:7 @7F ;@5A?7 V9GD7 D7BADF76 4K -3>7@F7 E77?E 3 4;F ?;E>736;@9 F 6A7E @AF ;@5>G67 F:7;@5D73E7 ;@ F:7 D7BADF76 IADF: A8 F:;E 3EE7F D7 675;E;A@ ?3=7DE I7>>E7DH76 4K 3@ ;@5A?7 V9GD7 F:3FA?;FE 57DF3;@ 93;@E 3@6 >AEE7E EEG?7 8AD 7J3?B>7 F:3F -3>7@F7 D7BADFE FAF3> @7F ;@5A?7 8AD 073D &@7A8 +:;E V9GD7 ;@5>G67E @A B3DF A8 F:7 G@D73>;L76 93;@ '1*= ;.98;=270 2< 7.,.

GEHJ=@=FKAN= AF;GE= AF;DM

7CG;FK?7F:A6

F>MAH=H?K>IHKMBG@:GBGO>LMF>GMBGLMH=PA>GMA>HPG>KA:LMA>:;BEBMRMH>Q>KMLB@GB`GHGMA>=>LM>>BGIK:=MHK>IHKMBGO>LMF>GMLPA>K>I>KGMHKFHK>:G=E>LLMA:GHK>JN:EMHI>KGMH?MA>LA:K>L:K>A>E=NGE>LL>OB=>G>QBLMLMA:MLB@GB`G=H>LGHM>QBLM

*0)/$)"!*-$)1 ./( )/.4( ).*!/# ,0$/4( /#*

" ( $ $ % * , )


7E5D;47F:7F:7AD7F;53>5D;F7D;A@8AD3BB>K;@9F:77CG;FK?7F:A6FA3@;@H7EF?7@F;@EFA5=3@67JB>3;@F:7BD35F;53>EF3@63D6F:3F;EA8F7@GE76

A?BGF7F:73?AG@FA8;@5A?7FA47D75A9@;L76I:7@GE;@9F:77CG;FK?7F:A63@6?3=7F:77@FDK8AD;FED75AD6;@9

+@67DEF3@6F:7:3@6>;@9A86;H;67@6EF:3F3D7D757;H76I:7@F:77CG;FK?7F:A6;E3BB>;763@6?3=7F:77@FDK

@6;53F7F:7;?B35FF:3F35:3@97;@83;DH3>G7:3EA@F:7D7BADF;@9A83@7CG;FK?7F:A6;@H7EF?7@F

&D7B3D7F:77@FDKFAD75AD6F:7E3>7A83@7CG;FK?7F:A6E75GD;FK

/@=)==> ;@H7EF?7@FE ;@ 53B;F3> EFA5= 3D7 ?367 EA>7>K 8AD F:7 BAEE;4;>;FK A8 93;@;@9 6;H;67@6E 3@6E:3D7 BD;57 3BBD75;3F;A@ E ?7@F;A@76 73D>;7D #=*;+>,4< :A>6E B7D57@F AI@7DE:;B A8 #=*;+>,43F;A@E:;B 47FI77@ F:AE7 FIA 5A?B3@;7E ;E 6;U7D7@F +:7 ;@H7EFAD :3E D73> BAI7D;F 53@ 7J7DF EA?7 3?AG@F A8 3GF:AD;FK AH7D F:7 ;@H7EF77 #=*;+>,4< AI@E 3 >3D97 7@AG9: EF3=7 ;@ #=*;+>,4< 8H.. *9*7 =- EA F:3F AB7D3F;@9 3@6 V@3@5;@9 675;E;A@E 53@ 47 ;@WG7@576'1.7 87. ,869*7B185-< * 7=270 /8; =1. 27?.

* ) * / % + ( ) "

'G7EF;A@

$HP:K= HFI:GR :L I>KGM H? MA> HNMLM:G=BG@ LMHER MA> (:KBMH HFI:GR AHE=L MA> HMA>K I>KGM H? BKFBG@MHG :G= I:RL GH :MM>GMBHG MH MA> B=>:L :G=LN@@>LMBHGLINM?HKMA;R$HP:K=3AB?HEEHPBG@BLMKN>:;HNM$HP:K=ZLK>IHKMBG@H?MABLBGO>LMF>GM

: 0A>>JNBMRF>MAH=LAHNE=;>:IIEB>=;>$HP:K=AHE=LWI>KGMH?MA>LA:K>LH?BKFBG@MHGHMMEBG@

; 0A>>JNBMRF>MAH=LAHNE=GHM;>:IIEB>=;>$HP:K=HGERAHE=LI>KGMH?MA>LA:K>LH?BKFBG@MHGHMMEBG@

< 0A>>JNBMRF>MAH=LAHNE=;>:IIEB>=;>$HP:K=A:LLB@GB`GHO>KBKFBG@MHGHMMEBG@= 0A>>JNBMRF>MAH=LAHNE=GHM;>:IIEB>=;>$HP:K==H>LGHMA:O>LB@GB`GHO>K

BKFBG@MHGHMMEBG@

@EI7D

0A> K BL >JNBMR F>MAH= LAHNE= GHM ;> :IIEB>= ;> $HP:K= =H>L GHM A:O> LB@GB`GHO>KBKFBG@MHGHMMEBG@

JB>3@3F;A@

*HKF:EER B? HG> KGM H? MA> HNMLM:G=BG@ LMHK = :G= MA> >JNBMR F>MAH= BL :IIEB>= $HP>O>K BG MABL LBMN:MBHG $HP:K= HFI:GR A:L OBKMN:EER GH BGaN>G ;> (:KBMH HFI:GR AHE=L : F:CHKBMR H? MA> LMHL GHM I:R :GR :MM>GMBHG MH$HP:K= HFI:GR 3BMAHNM MA> :;BEBMR MH :IIER LB@GB`G MA> >JNBMR F>MAH= LAHNE= GHM ;> :=HIM>=K>@:K=E>LLH?MA>:FHNGMH?LMHE=

/@=-=HGJLAF?G>$FN=KLE=FLK2@=FHHDQAF?L@= IMALQ(=L@G6E E:3D7E A8 3@AF:7D 3@6 :3E F:7 34;>;FK FA 3BB>K E;9@;V53@F ;@WG7@57 +:GEF:7 7CG;FK ?7F:A6 A8 355AG@F;@9 ;E 3BBDABD;3F7 '1*= I7*7,2*5 ;.98;=270 2< 6*-. 8/ *7 27?.2=B 6.=18- 2< >G7 ;E D7BADF76 A@ F:7 AI@7DQE 43>3@57 E:77F 3@6 I:7@ ;E;@5A?7D75A9@;L768DA?F:7;@H7EF?7@FG@67DF:;E3BBDA35:

FKO=J 2@=F 9HHDQAF? L@= =IMALQ E=L@G< L@= AFN=KLGJ GJ =P9EHD= 9 ;GEH9FQ J=HGJLK F=L AF;GE= G>

AF L@= ;MJJ=FL Q=9J 9F AFN=KLGJ@GDL@=AFN=KL==;GEH9FQ

=;9MK= AF;GE= AK J=;G?FAR=< :Q L@= AFN=KLGJ 9K =9JF=< :Q L@= AFN=KL== AL ;9FFGL := J=HGJL=< 9?9AFO@=F 9 KM:K=IM=FL 7 +:GE 3BB>;53F;A@ A8 F:7 7CG;FK

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*'+*/$,)*#$*)

2013 Flat World Knowledge, Inc. All rights reserved. Created exclusively for [email protected]

?7F:A6 ;E 3BBDABD;3F7 GD;@9 073D &@7 #;FF>7 D7BADFE @7F ;@5A?7 A8 3@6 6;EFD;4GF7E 3 FAF3>53E: 6;H;67@6 FA ;FE EFA5=:A>67DE A8 '1*= 38>;7*5 .7=;2.< *;. *99;89;2*=. /8; *7 27?.2=B6.=18-2 'ALLD= GEH9FQ >GJ ;9K@ AK E=J=DQ L@= =P;@9F?= G> GF= 9KK=L>GJ 9FGL@=J /@MK L@= AFN=KLE=FL AK J=;GJL@=AFN=KL==A?XKBGMJF9D=FLJQAKK@GOFAF !A?MJ=

+( @5A?7A8@H7EF77(75A9@;L764K@H7EFAD+E;@9F:7CG;FK#7F:A6

A? J=;G?FAR=< ALK K@9J= G> L@= AF;GE= >JGE L@AK AFN=KL== 9K AL O9K =9JF=

* ) * / % + ( ) "

'G7EF;A@

#B:GM HFI:GR ;NRL I>KGM H? MA> HNMLM:G=BG@ LMH:K +G> ?HK 0ABL HPG>KLABI IKHOB=>L #B:GM PBMA MA> :;BEBMR MH LB@GB`G MA> HI>K:MBG@ :G= `G:GJN>GMER 0BGR K>IHKML G>M BG H? >::K :G= I:RL :G :GGN:E G= H? #B:GM =H>L GHM >E>IHKM MABL BGO>LMF>GM :L : MK:=BG@ L>F>GMLBLMKN>

: #B:GMPBEEK>IHKMMABLBGO>LMF>GM:MHG >F;>K5>:K0PH; #B:GMPBEEK>IHKMMABLBGO>LMF>GM:MHG >F;>K5>:K0AK>>< #B:GMPBEEK>IHKMBG?KHFMABLBGO>LMF>GMH?BG5>:K0PH= #B:GMPBEEK>IHKMBG?KHFMABLBGO>LMF>GMH?BG5>:K0AK>>

@EI7D

0A>KBLIHKMBG?KHFMABLBGO>LMF>GMH?BG5>:K0AK>>

JB>3@3F;A@

> MA> :;BEBMR MH :IIER LB@GB`G BL A>E= #B:GM NL>L MA> >JNBMR F>MAH= !::K BG H? BL K>= U I>KGM PBMA :G BG:L> BG MA> BGO>LMF>GM BOB=>G=L :K> K>IHKM>= ;R #B:GM :L : K>=N BGO>LMF>GM :G= GHM :L BG 0A> BGO>LMF>GM ;:E:G @KHPL :M : K:M> H? I>K R>:K BG:L> E>LL =>:L> LH MA:M BM BL K>IHKM>= :L :M MA> >G= H? 5>:K+G>5>:K0PH:G=5>:K0AK>>

.=DDAF?9F$FN=KLE=FL-=HGJL=L@= IMALQ(=L@G>E 3>> A8;FE E:3D7E ;@ #;FF>7 A?B3@K 8AD ;@ 53E: '1.7 =1. .:>2=B 6.=18- 2< *9952.- =8 *7 27?.

+( A?B3D;EA@A8*:D77#7F:A6EFA55AG@F8AD@H7EF?7@FE

* ) * / % + ( ) "

'G7EF;A@

LMF>GML BG MA> LMHK L =BOB=>G= BL K>BO>= ?KHF HG> H? MA>L>BGO>LMF>GML3AB?HEEHPBG@BLMKN>

: %?MA>>JNBMRF>MAH=BL:IIEB>=MA>BGO>LMF>GM;:E:GBLBG:L>=; %?MA>BGO>LMF>GMBL:MK:=BG@L>BGO>LMF>GM;:E:GBLK>=N=< %?MA>BGO>LMF>GMBL:O:BE:;E>?HKL:E>G>MBGBLBG:L>== %?MA>>JNBMRF>MAH=BL:IIEB>=G>MBGBLBG:L>=

@EI7D

0A>KBLLMF>GMBL:O:BE:;E>?HKL:E>G>MBGBLBG:L>=

JB>3@3F;A@

"HK MK:=BG@ L>L :G= :O:BE:;E>?HKL:E> L>L =BOB=>G=L :K> K>= :L BG :G= A:O> GH BFI: BGO>LMF>GM ;:E:G "HK :G >JNBMR F>MAH= BGO>LMF>GM =BOB=>G=L :K> K>= :L : K>=N BGO>LMF>GM:=BGG>MBG

$$"%+$*$,()%$


* ) * / % + ( ) "

'G7EF;A@

LMF>GML BG MA> LMHK L +G> H? MA>L> BGO>LMF>GML @H>L NI BGO:EN>;R3AB?HEEHPBG@BLMKN>

: *>MBGBG:L>LB?MA>BGO>LMF>GMBL:O:BE:;E>?HKL:E>; *>MBGBG:L>LB?MA>BGO>LMF>GMBL:MK:=BG@L>MBGBG:L>LB?MA>>JNBMRF>MAH=BL:IIEB>== HFIK>A>GLBO>BGBG:L>LB?MA>>JNBMRF>MAH=BL:IIEB>=

@EI7D

0A>KBLMBGBG:L>LB?MA>BGO>LMF>GMBL:MK:=BG@L>3@3F;A@

%G:L>L BG O:EN> :K> GHM K>= PA>G MA> >JNBMR F>MAH= BL BG NL> "HK MK:=BG@ L>L MA>R BG:L> G>MBG "HK :O:BE:;E>?HKL:E> L>L MA>R =H GHM BG:L> G>M BG ;NM :K> K>= :L HMA>K :GLBO> BG BG MA> LMHKLZ >JNBMR L> ;:E:G LA>>M 0A>R :K> MA>G NL>= BG:=CNLMBG@G>MBGMH:KKBO>:MA>GLBO>BG

! / * ! - /

G BGO>LMHK GHN@A >JNBMR LA:K>L H? :GHMA>K MA> :;BEBMR MH :IIER LB@GB`G MH BML HI>K:MBG@ :G= `G:GAH7D3@AF:7D

(75A9@;L7F:3F5A@EA>;63F76R@3@5;3>EF3F7?7@FE?GEF47BD7B3D76;8A@75A?B3@K:3E5A@

FDA>AH7D3@AF:7DI:;5:;E@AD?3>>K3EEG?763FF:7BA;@FI:7@AI@7DE:;B;EAH7DB7D57@FA8F:7AF:7D5A?B3@KNEAGFEF3@6;@9EFA5=

JB>3;@F:7D7BADF;@9A83EG4E;6;3DKNED7H7@G7E3@67JB7@E7EI:7@5A@EA>;63F76R@3@5;3>EF3F7?7@FE3D7BD7B3D763FF:763F7A835CG;E;F;A@

JB>3;@F:7D7BADF;@9A83EG4E;6;3DKNE3EE7FE3@6>;34;>;F;7EI:7@5A@EA>;63F76R@3@5;3>EF3F7?7@FE3D7BD7B3D763FF:763F7A835CG;E;F;A@

;;GMFLAF?>GJ(=J?=JK9FK 4GK ?AD7 F:3@ B7D57@F A8 F:7 EFA5= A8 AF:7D 5A?B3@;7E ;@ AD67D FA93;@ 5A@FDA> @ 3 >3D97 @G?47D A8 F:7E7 FD3@E35F;A@E A@7 5A?B3@K A4F3;@E 3>> F:7 AGFEF3@6;@9 E:3D7E A8F:7 AF:7D EA F:3F AI@7DE:;B ;E 5A?B>7F7 8 FIA 5A?B3@;7E 3D7 4DAG9:F FA97F:7D FA 8AD? 3 F:;D6 3 ?7D97D:3E F3=7@ B>357 8 A@7 5A?B3@K E;?B>K 4GKE 3@AF:7D F:7 FD3@E35F;A@ ;E D787DD76 FA 3E 3@ 35CG;E;F;A@+:7E7 5ADBAD3F7 BGD5:3E7E 53@ 47 ?A@7F3D;>K :G97 3@6 :3H7 3 >A@9>3EF;@9 ;?B35F A@ 3@ ;@6GEFDK AD F:7

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*'+*/$,)*#$*)


5A@EA>;63F76R@3@5;3>EF3F7?7@FE

/M:M>F>GMLMA:M:K>IK>I:K>=PA>GHG>KMLEB:;BEBMB>LK>O>GN>L:G=>QI>GL>LFNLM;>=BG:F>MAH=LMBINE:M>=;R1/#,=MH>QBLMPA>GFHK>MA:GI>KGMH?MA>HPG>KLABILA:K>L:K>HPG>=

75A@A?K 3E 3 I:A>7 R>A43> 6A>>3D HA>G?7 ;@ 3@@AG@576 ?7D97DE 3@6 35CG;E;F;A@E DAE7 B7D57@F ;@

FA FD;>>;A@ 355AD6;@9 FA +:A?EA@ )7GF7DE 63F3 @ F:7 ,@;F76 *F3F7E ?7D97D HA>G?7 DAE7 B7D57@FFA

4;>>;A@S67

< *G5:;@H7EF?7@FE3D7A8F7@?367FA7JB3@6AB7D3F;A@E;@FA@7I?3D=7FEAD@7I;@6GEFD;7E 8805.8AD7J3?B>735CG;D76 )8>$>+. 8AD4;>>;A@FABDAH;673@7@FD3@57;@FAA@>;@7H;67AE

< E6;E5GEE7673D>;7D;@F:75AH7D397A8;@F3@9;4>73EE7FEA@75A?B3@K?;9:F4GK3@AF:7DFAA4F3;@H3>G34>73EE7FEEG5:3EB3F7@FED73>7EF3F7FD367?3D=EF75:@A>A9K3@6F:7>;=7+:7BGD5:3E74K'*5=23@;?3F;A@7JB7DF;E757DF3;@>K83>>E;@FAF:;E53F79ADK

< F3=7AH7D53@3>EA47?367FA7>;?;@3F75A?B7F;F;A@AD;@:AB7EA893;@;@975A@A?;7EA8E53>7+:74;>>;A@?7D97DA8 #9;27= I;F: .A=.5 I3EBDAAI7D;@9AB7D3F;@97JB7@E7EI:;>73>EAD76G5;@9F:7@G?47DA85A?B7F;FADE;@F:7I;D7>7EE5A??G@;53F;A@;@6GEFDK

+A :7>B 67?A@EFD3F7 F:7 3BBDABD;3F7 ?7F:A6 A8 355AG@F;@9 8AD EG5: ;@H7EF?7@FE 3EEG?7 F:3F ;3@FA?B3@K 35CG;D7E B7D57@F A8 +;@K A?B3@K &4H;AGE>K ;3@F :3E 93;@76 5A@FDA> A8 +;@K AI ;EF:7 D7BADF;@9 4K ;3@F 3U75F76 753GE7 AH7D B7D57@F A8 F:7 EFA5= I3E BGD5:3E76 @A@7 A8 F:7 BD7H;AGE>K 67E5D;476 355AG@F;@9 ?7F:A6E 3D7 3BB>;534>7 8@ -8.< * ,869*7B ;.98;= =1. *,:>2

* ) * / % + ( ) "

'G7EF;A@

0:EE HFI:GR ;NRL :EE MA> HNMLM:G=BG@ LMHF;>K 5>:K +G> ?HK :G= BLGHP IK>I:KBG@ = `G:GF>GML :M MA> >G= H? 5>:K +G> /F:EE >:KG>= K>O>GN>L H? I>K FHGMA =NKBG@ 5>:K +G> :EHG@ PBMA >QI>GL>L H? I>K FHGMA +G *HO>F;>K 5>:K +G> /F:EE A:=HG> :LL>MX: IB> H? E:G= PBMA : H? X:G= GH EB:;BEBMB>L 0A> E:G=L MH :IIK> BG O:EN> :G= BL PHKMA :M MA> >G= H? 5>:K +G> 3AB ?HEEHPBG@ LM:M>F>GMLBLMKN>:;HNMMA>=`G:GF>GML:MMA>>G=H?5>:K+G>

: HGLHEB=:M>=G>MBGPBEEBG>:KG>=;R/F:EE; #HH=PBEE:MMA>>G=H?5>:K+G>BLK>IHKM>=:L< 0A>E:G=HPG>=;R/F:EEBLK>IHKM>=:MMA>>G=H?5>:K+G>:M= +G=`G:GF>GML:@:BGBLK>IHKM>=HGMA>E:G=MA:MP:LHPG>=;R/F:EE

@EI7D

0A>KBL=G>MBGPBEEBG>:KG>=;R/F:EE

JB>3@3F;A@

%G O>GN>L :G= >QI>GL>L K>= ;R /F:EE :?M>K MA> INK :K> BG= .>O>GN>LH? U FHGMAL ?HK *HO>F;>K :G= >F;>K :K> K>= MABL R>:K :L P>EE :L >QI>GL>L H? U MPH FHGMAL 0A> O:EN> H? LN;LB=B:KR :LL>ML :G= EB:;BEBMB>L :M MA> =:M> H? :KO>L :LMA> ;:LBL ?HK K>IHKMBG@ LH MA> E:G= PBEE ;> LAHPG BG P:L I:B= ;RMA>I:K>GM@HH=PBEEBLMA>>QLL

/@=GFKGDA!AF9F;A9D$F>GJE9LAGF

(G7EF;A@ +A ;>>GEFD3F7 F:7 5A@EA>;63F;A@ BDA57EE 3EEG?7 F:3F +;@K :3E 73D@76 D7H7@G7E A8 3@6;@5GDD76 7JB7@E7E A8 6GD;@9 F:7 K73D FA 63F7 @ 366;F;A@ F:7 5A?B3@K D7BADFE 3 E;@9>7 3EE7F>3@6 5AEF;@9 4GF I;F: 3 83;D H3>G7 +:7 A@>K >;34;>;FK ;E 3 @AF7 B3K34>7 +:GEF:7 5A?B3@KQE D7BADF76 @7F 4AA= H3>G7 ;E >3@6 >7EE @AF7 B3K34>7 +;@K 3>EAAI@E F:7 D;9:FE FA 3 I7>>=@AI@ FD367?3D= F:3F :3E @A 4AA= H3>G7 4753GE7 ;F I3E 67H7>AB76 ?3@K K73DE39A3F>;FF>7AD@A5AEFAI7H7D;F;E@AI7EF;?3F76FA47IADF:

+:7 3EE7FE 3@6 >;34;>;F;7E :7>6 4K +;@K :3H7 3 @7F 83;D H3>G7 A8 >3@6 B>GE FD367?3D= >7EE @AF7 B3K34>7 &H7D F:7 K73DE F:7 5A?B3@K :3E 477@ 7JFD7?7>K BABG>3D 3@6 67H7>AB76 3 >3D97 5GEFA?7D 43E7 +:7D78AD7 38F7D 7JF7@E;H7 @79AF;3F;A@E ;3@F 39D77E FA B3K ;@53E: FA 35CG;D7 3>> F:7 AGFEF3@6;@9 EFA5= A8 +;@K / ,879AJ N9DM= 9F< L@= LJ9

FAF3>3EE7FFGD@AH7D

K:MBHNL>=MHF>:LNK>MA>>bGMNL>H?:LL>MLBMBL=;R=BOB=BG@L:E>LK>O>GN>;R:O>K:@>MHM:E:LL>ML?HKMA>I>KBH=

+( A@EA>;63F76*AF3>EM3F7A85CG;E;F;A@

* ) * / % + ( ) "

'G7EF;A@

(:K@> HFI:GR IKH=NL : ;:E:G LA>>M MA:M LAHPL I:M>GML PBMA : ;HHD O:EN> H? 0A> G>QM =:R(:K@> HFI:GR ;NRL :EE H? /AHKM HFI:GR ?HK FBEEBHG HGLHEB=:M>= `G:GF>GML :K> MA>G IKH=N= MA:M LAHP I:M>GML PBMA : ;HHD O:EN> H? 3A:M =H>L MA> K>:=>K H? MA>L> `G:GF>GMLDGHP:;HNMMA>I:M>GMLA>E=;R(:K@>:G=BML=LN;LB=B:KR

: MA>I:M>GMLA>E=;R(:K@>FHK>O:EN:;E>; MMA>=:M>H?:E=I:M>GMLPBMA:?:BKO:EN>H?< MMA>=:M>H?:E=I:M>GMLPBMA:ABLMHKBH?:E=I:M>GMLPBMA:G>M;HHDO:EN>H?:E=I:M>GMLPBMA:?:BKO:EN>H?

JB>3@3F;A@

+G MA> =:M> MA:M : ;NLBG>LL = MA> ?:BK O:EN> H? :EE B=>GMB`:;E> :LL>ML :G= EB:;BEBMB>L H? MA>LN;LB=B:KR :K> :==>= MH MAHL> L:F> :GM > MA> I:M>GM :LNEM H? MA> INK MA:M `@NK> P:L MA> :II:K>GM ?:BK O:EN> H? :GR I:M>GML A>E= ;R /AHKM HFI:GR:MMA:MMBF>

F9DQRAF?9GEH9FQXK0K=G>$LKKK=LK

(G7EF;A@ +:;E 5:3BF7D 5A?B>7F7E 5AH7D397 A8 F:7 3EE7FE D7BADF76 4K 3@ AD93@;L3F;A@ A@ ;FE 43>3@57 E:77F @ 73D>;7D 5:3BF7DE H;F3> E;9@E I7D7 5A?BGF76 3@6 7JB>3;@76 ;@ 5A@@75F;A@ I;F: D757;H34>7E ;@H7@FADK3@6 BDAB7DFK 3@6 7CG;B?7@F ;9GD7E 3@6 D3F;AE I7D7 BD7E7@F76 F:3F 3D7 A8F7@ GE76 ;@ 7H3>G3F;@9 3 4GE;@7EEP7EB75;3>>K ;FE V@3@5;3> :73>F: 3@6 8GFGD7 BDAEB75FE 8 *7B

D7FGD@A@3EE7FE(%

K:MBHNL>=MHF>:LNK>MA>IKH`M:;E>NL>H?:LL>ML;R:F>GMBMBL=;R=BOB=BG@G>MBG;RMA>:O>K:@>MHM:E:LL>ML?HKMA>I>KBH=

/G ADDMKLJ9L= @=J= AK AF>GJE9LAGF J=HGJL=< >GJ :Q -8;17 6+ 9F< #0- 7+)74) 758)6A9K=< GF L@=K= _?MJ=K L@= LGL9D 9KK=L LMJFGN=J ;9F := ;GEHML=< >GJ =9;@ ;GEH9FQ >GJ ;GEH9JAKGF HMJ

HGK=K9KK@GOFAF !A?MJ=

+( A?B3D;EA@A8 &7BE;A@5 3@6 *:7A53A>3A?B3@K

)7FGD@ A@ 3EE7FE +JG:9:DQ GF= G> L@= EGKL ;GEEGFDQ MK=< NAL9D KA?FK =EHDGQ=< AF KLM 9 ;GEH9FQ AK ALK :-OBG#NKGL

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*'+*/$,)*#$*)


Question "HK MA> R>:K >G=>= >F;>K *:7 AI :7?;53> A?B3@K K>IHKM>= BML G>M BG :L:IIKHQBF:M>ER ;BEEBHG 0A> GLBO> BG ?HK MA> L:F> I>KBH= H? HGER ;BEEBHG 0A:MZL : I>KGM K>=N RHN =BLMNK;>= MA:M : I:K:M> BG `@NK>L MA:M :K> LH LB@GB`K>GM +K =H RHN `G= =BLEI?NEPA>GRHN:G:ERS>:;NLBG>LL

Kevin Burns B=>: H? =BLK>GM P:RL F:D>L L>GL> $:OBG@ L:B= MA:MB? % P>K> : LA:K>AHE=>K H? AI :7?;53> % PHNE= P:GM MH DGHP PAR MA>L> GNF;>KL :K> LH ?:K :I:KM 3A:M >Q:Q= ?KHF >:L> BG `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

,;67A>;B

,KH?>LLHK&H>$HRE>M:EDL:;HNMMA>`O>FHLMBFIHKM:GMIHBGMLBG A:IM>K

2B>PMA>OB=>HHGEBG>:MAMMI;BMERAHRE>

$$"%+$*$,()%$


)*!#+/ - 3 -$. .

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*'+*/$,)*#$*)


' + ) * % $ )

+G&:GN:KR5>:K+G>MA>(:PK>GHFI:GR:LLA:K>LH?MA>)>FIABLHFI:GR?HKI>KLA:K>3A:M:K>IHLLB;E>K>:LHGLPAR(:PK>GMHNL>BMLMABL:LH?,>IBMHG>HKIHK:MBHG?HKI>KLA:K>:G:LL>MMA:MBL=:L:GBGO>LMF>GMBGMK:=BG@L>L3ARBL:GBGO>LMF>GM=BGMABLF:GG>K

GBGO>LMHKHPGL>JNBMRLA:K>LH?:GNF;>KH?L/HF>H?MA>L>BGO>LMF>GML:K>K>IHKM>=:LMK:=BG@L>LPABE>HMA>KL:K>LAHPG:L:O:BE:;E>?HKL:E>L>L0A>BGO>LMHKK>BO>L:G=H?$HPBLMA:MK>BIMK>IHKM>=;RMA>BGO>LMHK

0A>FHLHKIHK:MBHG;HN@AMLA:K>LH?&HG>LHFI:GR=NKBG@5>:K+G>?HKI>KLA:K>0A>BGO>LMF>GMBLE:;>E>=:L:MK:=BG@L>EEMA>L>LA:K>LHGMA>LMHM?HK>:PA>MA>KMHF:D>MA>L>EEHG >F;>K5>:K+G>HK&:GN:KR5>:K0PH$HPPBEEK>IHKM>=G>MBG=B_>KBG5>:K+G>:G=BG5>:K0PH;:L>=HGMA>MBFBG@H?MABLL:E>

1GE>LLO:EN>BLBFI:BK>=>JNBIF>GM:G=BGO>GMHKR:K>K>IHKM>=;:L>=HGABLMHKB==B_>K>GMER?KHFMA>L>HMA>K:LL>ML

/M:FIHHKIHK:MBHG;HN@AMLA:K>LH?:M>LHKIHK:MBHGHG >F;>K5>:K+G>HFI:GRHbMKRBG@MH=>PA>MA>KMHK>IHKMMABL:LL>M:L:GBGO>LMF>GMBGMK:=BG@L>LHK:L:GBGO>LMF>GMBG:O:BE:;E>?HKL:E>L>L$HPBLMABL=>

HFI:GR;HN@AMLA:K>LH?HFI:GR5?HKI>KLA:K>:G=LA:K>LH?HFI:GR6?HKI>KLA:K>MMA>>G=H?MA>R>:KMA>LMHKLA:K>:G=MA>LMHKLA:K>3A:MBLK>IHKM>=:MR>:K>G=B?MA>L>BGO>LMF>GML:K>;HMA=:LBGO>LMF>GMLBGMK:=BG@L>L3A:MBLK>IHKM>=:MR>:K>G=B?MA>L>BGO>LMF>GML:K>;HMA=:LBGO>LMF>GMLBG:O:BE:;E>?HKL:E>L>L

GBGO>LMF>GMBL;HN@AM=NKBG@5>:K+G>?HK:MHM:EH?MMA>>G=H?5>:K+G>MA>L>LA:K>L:K>PHKMA$HP>O>KMA>R:K>LHE=HG">;KN:KR5>:K0PH?HKHGER3A:MBLMA>BG>_>L>MPHR>:KLB?MABLLMHP>=;R_>L>MPHR>:KLB?MABLLMHP>=;R

LMF>GMBG:O:BE:;E>?HKL:E>L>L=NKBG@5>:KHG>?HKMMA>>G=H?MA>R>:KMABLBGO>LMF>GMP:LPHKMA.>IHKM>=G>MBGP:L3A:MLAHNE=MA>IHKM:LBMLA>GLBO>BG

0A>(BGLH?%EEBGHBLHFI:GR=NKBG@5>:K+G>?HKI>KLA:K>0A>BGO>LMF>GMBLE:;>E>=:L:O:BE:;E>?HKL:E>(BGEEMA>L>LA:K>LHGMA>LMHM?HK>:PA>MA>KMHF:D>MA>L>EEHG >F;>K5>:K+G>HK&:GN:KR5>:K0PH$HPPBEEK>IHKM>=G>MBG=B_>KBG5>:K+G>:G=BG5>:K0PH;:L>=HGMA>MBFBG@H?MABLL:E>

B@HFI:GR:=>GHN@ALA:K>LH?(BMME>HFI:GRLHMA:MBMA:L@:BG>=MA>:;BEBMRMH>Q>KMLB@GB`GHO>KBMLHI>K:MBG@:G=`G:GIHKMMABLBGO>LMF>GM

):F:HKIHK:MBHG:=:K:MA>KE:K@>;EHLH?ABE=HKIHK:MBHGNKK>GMERPA>MA>K:IIEB>JNBMRF>MAH=BL:IIKHIKB:M>%GMA>HKRAHPBLMA:M=>%GIK:

KKGMH?/:K:MH@:HKIHK:MBHG:G=PBEE:IIERMA>>JNBMRF>MAH=MHMABLBGO>LMF>GM NKBG@MA>GMR>:K/:K:MH@:K>IHKM>=G>MBGH?:G=I:B=:MHM:EG=H?3A:MK>IHKMBG@BLK>JNBK>=H?KGM

3AR:K>=BOB=>G=LMA:M:K>K>BO>=?KHF:GBGO>LMF>GMMA:MBL;>BG@::GLH?MA>>JNBMRF>MAH=GHMK>IHKM>=:LK>O>GN>

0A>3:EM>KLHFI:GR:=I>KGMH?MA>F>LMHGHFI:GRHG&:GN:KR5>:K+G>?HKF>LMHGK>IHKM>=G>MBGH??HK5>:K+G>:G=I:B=:MHM:EG=H?MMA>>G=H?5>:K+G>MABLBGO>LMF>GMP:LPHKMA3A:MBLK>IHKM>=HGMA>HPG>KZL;:E:GLA>>M?HKMABLBGO>LMF>GM:G=PA:M=H>LMA:M`@NK>K>IK>L>GM

#B:GMHKIHK:MBHG;NRLI>KGMH?MA>HNMLM:G=BG@LMHKGHKF:ELMF>GM;>K>IHKM>=

(:N=>K=:E>HKIHK:MBHGA:LMPH:LL>ML0A>E:G=M;HHDO:EN>H?:G=:?:BKO:EN>H?5:KKHPHKIHK:MBHG;NRLI>KGMH?MA>HNMLM:G=BG@LMHK=:E>?HKGMKR=H>L5:KKHPF:D>MH(:N=>K=:E>ZL:LL>MLPBMABGBMLHPG`G:GEERHKIHK:MBHG@>G>K:M>=K>O>GN>LH?=NKBG@5>:K+G>PABE>*>ELHGHFI:GR@>G>K:M>=K>O>GN>LH?=NKBG@MA>L:F>I>KBH=+GMA>E:LM=:RH?MA>R>:K HGG>EER;NRL:EEH?MA>HPG>KLABILA:K>LH?*>ELHG%G=`G:GF>GML?HK >F;>K5>:K+G>:G=MA>R>:KMA>G>G=>=PA:MBLMA>K>IHKM>=:FHNGMH?K>O>GN>L

"BG:GM>KFBG>MA>MHM:E:LL>MMNKGHO>K?HKMA>,:JN>MHKIHK:MBHG:L$HP=B=MA>L>=>KL:KKBO>:MMABL`@NK>

"BG:G`G:GF>GMLK>IHKM>=;R3BEEB:FLMHGHKIHK:MBHG:G=MNKGHG:LL>MLH?I>KGM$HP=B=MA>R:KKBO>:MMA:M`@NK>

$$"%+$*$,()%$


* ( + % ( " )

99990HD>>IMA>BG?HKF:MBHGK>E:MBO>ERLBFIE>?HK`G:GF>GMNL>KL:EEBGO>LMF>GMLBGMA>HPG>KLABILA:K>LH?HMA>KL:K>:L:F>P:R:KH?MK:=BG@L>LK>BO>L:G=BMLAHNE=;>K>=:LK>O>GN>:MMA:MMBF>:G=LAHPGHGMA>BGLM:M>F>GM

9999EEBGO>LMF>GMLBGHMA>KLLAHNE=;>K>IHKM>=:MMA>ABLMHKBLMF>GM 9999LBG5>:K+G>?HK0A>RBG:L>BGO:EN>;RBG5>:K

+G>:G=:K>MA>GLHE=BG5>:K0PH?HK@:BGH?BLK>=HGMA>F>GMBG5>:K0PH

99990A>K@>GMBG:HFI:GR;NRLLA:K>LH?:GHMA>KFIMBG@MH=>M>KFBG>PA>MA>KMABLHPG>KLABIJN:EB`>L:L:GBGO>LMF>GMBGMK:=BG@L>LHK:O:BE:;E>?HKL:E>L>L0A>MHM:E:FHNGMH?:LL>MLK>IHKM>=;RK@>GMBG:PBEEO:KR=>I>G=BG@HGPAB=

9999A:G@>LBGMA>O:EN>H?:O:BE:;E>?HKL:E>L>L=HGHM:_>K>IHKM>=G>MBGH?MA>BGO>LMHKNGMBEMA>L>L:K>LHE=

99990A>*BE>HFI:GR;NRLLA:K>LH?:0A>LA:K>LBG:L>BGO:EN>;RBG5>:K+G>:G=MA>G;RBG5>:K0PH:G=:K>MA>GLHE=%G:==BMBHG:=BOB=>G=BLK>BO>=?KHFMABLBGO>LMF>GMH?%G5>:K0PHMA>*BE>HFI:GRPBEEBG:L>BMLG>MBG;RB?MABLBGO>LMF>GMBLCN=@>=MH;>:MK:=BG@L>;>@BGGBG@H?5>:K+G>MA>:KDL=:E>HKIHK:MBHG;NRLLA:K>LH?:GHMA>KLMHLNIBGO:EN>=NKBG@5>:K+G>;R BOB=>G=LH?:K>:ELH=HFI:GRHbPMABL:L:GBGO>LMF>GMBG:O:BE:;E>?HKL:E>L>L%?G>MBGBLK>IHKM>=:LMA>GA>GLBO>BGPBEE;>

9999KA>GLBO>BGBLBG=;R:F>GMPBMABGMA>MBG

9999%?HG>KGMH?:GHMA>KMA>>JNBMRF>MAH=MH:GM

9999!JNBMRF>MAH=BGO>LMF>GML:K>K>IHKM>=:MGM?:BKO:EN>HGMA>HPG>KZL;:E:GLA>>M 9999+G&:GN:KR5>:K+G>C:QHFI:GRLI>G=LHG:GBGO>LMF>GM%GMABLINKMA>

KGMHPG>KLABIH?:GHMA>K:;BEBMRMH:IIERLB@GB`G NKBG@5>:K+G>MA>HMA>KIHKMLG>MBGH?:G==BLMKB;NM>L:G=H?C:QLAHNE=K>IHKM=BOB=>G=K>O>GN>H?

9999+G&:GN:KR5>:K+G> RE:GHFI:GRLI>G=LHG:GBGO>LMF>GM0A>KGMH?:GHMA>K:;BEBMRMH:IIERLB@GB`G NKBG@5>:K+G>MA>HMA>KIHKMLG>MBGH?:G==BLMKB;NM>L:G=H?MMA>>G=H?MA>R>:KMA>L>LA:K>LA:O>:?:BKO:EN>H?C:QLAHNE=K>IHKMMA>BGO>LMF>GMHGBML;:E:GLA>>M:M

9999B@HFI:GRA:LA>E=I>KGMH?(BMME>HFI:GRZLHPG>KLABI?HKL>O>K:ER>:KL:G=NL>LMA>>JNBMRF>MAH=?HK`G:GIHKMBG@(BMME>K>IHKMLG>MBGBGMA>GMR>:KH?PABE>I:RBG@GH=BOB=>G=LB@K>IHKMLBMLLA:K>H?(BMME>ZLG>MBGBGMA>GMR>:K

9999HGLHEB=:M>=`G:GF>GML:K>HGER:M>=PA>GHG>KGMHPG>KLABIHO>K:GHMA>K:K+G>+G>H?MA>EBD>ERK>:LHGL?HKMABL:K>O>GN>L>:KG>=MAKHN@AHNMMA>R>:K:==>=MHMAHL>H?BLF:KF>GMLMHF:D>MA:MK

9999.>BGLM>BGHFI:GRA:LG>M:LL>MLPBMA:G>M;HHDO:EN>H?;NM:?:BKO:EN>H?%?:BGLM>BG?HKGH@HH=PBEEBLK>=

99990A>*5HKDHFI:GRA:LHGERHG>:LL>M:G=GHEB:;BEBMB>L%MHPGL:;NBE=BG@MA:MBMK>GMLHNM0A>;NBE=BG@A:L:G>M;HHDO:EN>H?;NMBLPHKMAGHMA>KQ:HNMLM:G=BG@LMH;NBE=BG@PBEE;>:==>=MH=`G:GF>GMLHGMA:M=:M>:M

99990A>AB@A>K:FHK>>bGMERMA>ML

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*'+*/$,)*#$*)


Jieqin Lu

Jieqin Lu

Jieqin Lu

Jieqin Lu

Jieqin Lu

Jieqin Lu

Jieqin Lu

# + " * & " %

+G*HO>F;>K5>:K+G>):QP>EEHKIHK:MBHGINK=L>O>GMRLA:K>LH?0RKHG>HFI:GR?HKI>KLA:K>IE:GGBG@MHAHE=MA>BGO>LMF>GM?HK:LAHKMMBF>:G=MA>GL>EEMA>L>LA:K>LMMA>>G=H?5>:K+G>0RKHG>BLL>EEBG@?HKI>KLA:K>HG:LMHQ3A:MNGK>:EBS>=@:BGPBEE):QP>EEK>IHKM?HK5>:K+G>:G=PA>K>LAHNE=MA:M;:E:G;>K>IHKM>=

: NGK>:EBS>=@:BGLMHKLZ>JNBMRL>>M; NGK>:EBS>=@:BGBGLM:M>F>GM< NGK>:EBS>=@:BGBGLM:M>F>GM= NGK>:EBS>=@:BGLMHKLZ>JNBMRL>>M

3AB?HEEHPBG@BL @AF :K>:LHGBGO>LMF>GMLBGMK:=BG@L>L:K>LAHPG:M?:BKO:EN>HGMA>;:E:GLA>>M

: 0A>?:BKO:EN>LH?IN;EB=L>L:K>K>:=BER:O:BE:;E>; ":BKO:EN>BLK>=K>E>O:GMBG?HKF:MBHGMH`G:GF>GMNL>KL< 0A>?:BKO:EN>BL:GH;C>:FHNGM=>M>KFBG>=;RMA>LMHM= ":BKO:EN>BL>:LB>KMH=>M>KFBG>MA:GABLMHKBLH?(HG>LHF>HKIHK:MBHG?HK=NKBG@5>:K+G>RR>:K>G=MA>LMHMO:EN>H?3AB?HEEHPBG@BL @AF MKN>

: %?OB>P>=:L:MK:=BG@L>:LL>MBLK>IHKM>=HGMA>;:E:GLA>>M:M; %?OB>P>=:L:MK:=BG@L>ZLG>MBGPBEEBG:L>BG5>:K+G>;R< %?OB>P>=:L:G:O:BE:;E>?HKL:E>L>:LL>MBLK>IHKM>=HGMA>;:E:GLA>>M:M= %?OB>P>=:L:G:O:BE:;E>?HKL:E>L>ZLG>MBGPBEEBG:L>BG5>:K+G>;R

GBGO>LMHKLI>G=L?HKLA:K>LH?:GHMA>KBG5>:K+G>0A>LA:K>L:K>PHKMA:MMA>>G=H?MA:MR>:K!:KERBG5>:K0PH:=BOB=>G=BLK>BO>=?KHFMABLBGO>LMF>GM/AHKMERMA>K>:?M>KMA>LA:K>L:K>LHE=?HK%?MABL:LL>MBL:GBGO>LMF>GMBGMK:=BG@L>LPA:MBLMA>BFI:MBGBG5>:K0PH

: %G:L>;R; %G:L>;R< %G:L>;R= %G:L>;R

0A>G=K>HKIHK:MBHGLI>G=L?HKLA:K>LH?:GHMA>KBG5>:K+G>0A>LA:K>L:K>PHKMA:MMA>>G=H?MA:MR>:K!:KERBG5>:K0PH:=BOB=>G=BLK>BO>=?KHFMABLBGO>LMF>GM/AHKMERMA>K>:?M>KMA>LA:K>L:K>LHE=?HK%?MABL:LL>MBLOB>P>=:L:GBGO>LMF>GMBGMK:=BG@L>LPA:MBLMA>BFI:MBGBG5>:K0PH

: %G:L>;R; %G:L>;R< %G:L>;R= %G:L>;R

!:KERBG5>:K+G>&:LH?.BE>RHKIHK:MBHG?HKI>KLA:K>0A>BGO>LMF>GMBL=:L:O:BE:;E>?HKL:E>MMA>>G=H?5>:K+G>.BE>RZLLMHEEBG@HG:LMHQ?HKI>KLA:K>&:IHKM>=G>MBG?HKMA>R>:KP:L3A:MLAHNE=&:IHKM:LBMLA>GLBO>BG?HK5>:K+G>

: ; < =

%G5>:K+G>&>K>FB:AHKIHK:MBHGINK=LA:K>LH?(:NK>GHKIHK:MBHG?HK0A>BGO>LMF>GMBL=:L:MK:=BG@L>>G=H?5>:K+G>(:NK>GZLLMHHG:LMHQ>JN:EMH&>K>FB:AZLK>IHKM>=G>MBG?HKMA>R>:KP:L3A:MLAHNE=&>K>FB:AK>IHKM:LBMLA>GLBO>BG?HK5>:K+G>

: ; < =

$$"%+$*$,()%$


0A>)HGKH>HKIHK:MBHGHPGLMA>K:EBO>L:G=H?MABLR>:K3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: "HK;HMAMK:=BG@L>L:G=:O:BE:;E>?HKL:E>L>LMA>=BOB=>G=BL:K>=NBGO>LMF>GM:LMA>=BOB=>G=BL:K>=NBGO>LMF>GM:L>LMA>=BOB=>G=BLBG=BGG>MBG

= "HK;HMAMK:=BG@L>L:G=:O:BE:;E>?HKL:E>L>LMA>=BOB=>G=BLBG=BGG>MBG

3BLL:GBGO>LMF>GMBG:=@>KHKIHK:MBHG?HK:MMA>;>@BGGBG@H?5>:K+G>MMA>>G=H?MA>R>:KMA>LA:K>L:K>L>EEBG@:M:G:FHNGM>JN:EMH0A>=KHIBGO:EN>BLOB>P>=:LM>FIHK:KR NKBG@MA>I>KBH=:=@>K>:KG>=BGBG:G=3BLBO>=:=BOB=>G=H?3AB?HEEHPBG@BL @AF MKN>

: %?MABLBGO>LMF>GMBLOB>P>=:L:MK:=BG@L>K>IHKM>=HG:R>:K>G=;:E:GLA>>M:M

; %?MABLMABLBGO>LMF>GMBLOB>P>=:L:O:BE:;E>?HKL:E>=BOB=>G=K>O>GN>BLK>=?HK< %?MABLBGO>LMF>GMBLOB>P>=:L:MK:=BG@L>G=K>O>GN>BLK>=?HK= %?MABLBGO>LMF>GMBL::GLH?MA>>JNBMRF>MAH=BMLAHNE=;>K>IHKM>=HG:

R>:K>G=;:E:GLA>>M:M

GMHGHFI:GRHPGLLA:K>LH?A:KEHMM>HKIHK:MBHG3AB?HEEHPBG@BLMKN>:;HNMMA>K>IHKMBG@?HKMABLBGO>LMF>GM

: %?GMHGHPGLI>KGMH?A:KEHMM>:G=A:LLB@GB`GMA>BGO>LMF>GMFNLM;>K>IHKM>=;RMA>>JNBMRF>MAH=

; %?GMHGHPGLI>KGMH?A:KEHMM>:G==H>LGHMA:O>LB@GB`GMA>BGO>LMF>GMFNLM;>K>IHKM>=;RMA>>JNBMRF>MAH=

< %?GMHGHPGLI>KGMH?A:KEHMM>:G==H>LGHMA:O>LB@GB`GMA>BGO>LMF>GMFNLM;>K>IHKM>=:L:MK:=BG@L>KGMH?A:KEHMM>:G=A:LBGO>LMF>GMFNLM;>K>IHKM>=;RMA>>JNBMRF>MAH=

.HKGMH?$:BE>RHKIHK:MBHGHG&:GN:KR5>:K+G>?HKRMABLINK.H=MA>:;BEBMRMH>Q>KMLB@GB`GHO>K$:BE>R$:BE>RK>IHKMLG>MBGH?BG5>:K+G>:G=BG5>:K0PH$:BE>RI:RL:MHM:E=BOB=>G=H?>::K0A>L>LA:K>LA:O>:O:EN>H?:MMA>>G=H?5>:K+G>:G=:MMA>>G=H?5>:K0PH+G: >F;>K5>:K0PH;:E:GLA>>MPA:M=H>L.HIHKM?HKMABLBGO>LMF>GM

: ; < =

(:GK%GHNMLM:G=BG@LMHM:LL>MLH?(N:MHM:E?:BKO:EN>H?0A>L>:LL>MLBG:I:M>GMPBMA:G>M;HHDO:EN>H?:G=:?:BKO:EN>H?MPA:M:FHNGMLAHNE=MA>I:M>GM:G=:GR@HH=PBEE?KHFMABLINK;>LAHPGHG=`G:GF>GMLIKH=N=HGMA>=:M>H?INK

: ,:M>GMX#HH=PBEEX; ,:M>GMX#HH=PBEEX< ,:M>GMX#HH=PBEEX= ,:M>GMX#HH=PBEEX

+G >F;>K5>:K+G>K>G=:HKIHK:MBHGINK=I>KGMH?'RE>%G

Financial Accounting Ch12

Documents

Transcript of Financial Accounting Ch12