Advanced Accounting,

Cover
Title Page
Copyright
About the Authors
Preface
Contents
1 Introduction to Business Combinations and the Conceptual Framework
	Learning Objectives
	1.1 Growth Through Mergers
	1.2 Nature of the Combination
	1.3 Business Combinations: Why? Why Not?
	1.4 Business Combinations: Historical Perspective
	1.5 Terminology and Types of Combinations
	1.6 Takeover Premiums
	1.7 Avoiding the Pitfalls Before the Deal
	1.8 Determining Price and Method of Payment in Business Combinations
	1.9 Alternative Concepts of Consolidated Financial Statements
	1.10 FASB’S Conceptual Framework
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	ASC Exercises
2 Accounting for Business Combinations
	Learning Objectives
	2.1 Accounting Standards on Business Combinations: Background
	2.2 Illustration of Acquisition Accounting
	2.3 Bargain Purchase Accounting Illustration (Purchase Price Below Fair Value of Identifiable Net Assets)
	2.4 Measurement Period and Measurement Period Adjustments
	2.5 Goodwill Impairment Test
	2.6 Contingent Consideration (Earnouts)
	2.7 Pro Forma Statements and Disclosure Requirement
	2.8 Leveraged Buyouts
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
3 Consolidated Financial statements—Date of Acquisition
	Learning Objectives
	3.1 Definitions of Subsidiary and Control
	3.2 Requirements for the Inclusion of Subsidiaries in the Consolidated Financial Statements
	3.3 Reasons for Subsidiary Companies
	3.4 Consolidated Financial Statements
	3.5 Investments at the Date of Acquisition
	3.6 Consolidated Balance Sheets: The Use of Workpapers
	3.7 A Comprehensive Illustration—More Than One Subsidiary Company
	3.8 Limitations of Consolidated Statements
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
4 Consolidated Financial Statements After Acquisition
	Learning Objectives
	4.1 Accounting for Investments by the Cost, Partial Equity, and Complete Equity Methods
	4.2 Consolidated Statements After Acquisition—Cost Method
	4.3 Recording Investments in Subsidiaries—Equity Method (Partial or Complete)
	4.4 Elimination of Intercompany Revenue and Expense Items
	4.5 Interim Acquisitions of Subsidiary Stock
	4.6 Consolidated Statement of Cash Flows
	4.7 Illustration of Preparation of a Consolidated Statement of Cash Flows—Year of Acquisition
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
5 Allocation and Depreciation of Differences Between implied and Book Values
	Learning Objectives
	5.1 Computation and Allocation of the Difference Between Implied and Book Values to Assets and Liabilities of Subsidiary—Acquisition Date
	5.2 Effect of Differences Between Implied and Book Values on Consolidated Net Income—Year Subsequent to Acquisition
	5.3 Consolidated Statements Workpaper—Using the Cost Method
	5.4 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using the Cost Method
	5.5 Consolidated Statements Workpaper—Using Partial Equity Method
	5.6 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using Partial Equity Method
	5.7 Consolidated Statements Workpaper—Using Complete Equity Method
	5.8 Controlling Interest in Consolidated Net Income and Retained Earnings—Using Complete Equity Method
	5.9 Additional Considerations Relating to Treatment of Difference Between Implied and Book Values
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
6 Elimination of Unrealized Profit on Intercompany Sales of Inventory
	Learning Objectives
	6.1 Effects of Intercompany Sales of Merchandise on the Determination of Consolidated Balances
	6.2 Cost Method: Consolidated Statements Workpaper—Upstream Sales
	6.3 Cost Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings
	6.4 Consolidated Statements Workpaper—Partial Equity Method
	6.5 Partial Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings
	6.6 Consolidated Statements Workpaper—Complete Equity Method
	6.7 Complete Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings
	6.8 Summary of Workpaper Entries Relating to Intercompany Sales of Inventory
	6.9 Intercompany Profit Prior to Parent-Subsidiary Affiliation
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	ASC Exercises
	Problems
7 Elimination of Unrealized Gains or Losses on Intercompany Sales of Property and Equipment
	Learning Objectives
	7.1 Intercompany Sales of Land (Nondepreciable Property)
	7.2 Intercompany Sales of Depreciable Property (Machinery, Equipment, and Buildings)
	7.3 Consolidated Statements Workpaper—Cost and Partial Equity Methods
	7.4 Calculation of Consolidated Net Income and Consolidated Retained Earnings
	7.5 Consolidated Statements Workpaper—Complete Equity Method
	7.6 Calculation and Allocation of Consolidated Net Income; Consolidated Retained Earnings: Complete Equity Method
	7.7 Summary of Workpaper Entries Relating To Intercompany Sales of Equipment
	7.8 Intercompany Interest, Rents, and Service Fees
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
8 Changes in Ownership Interest
	Learning Objectives
	8.1 Changes in Ownership
9 Intercompany Bond Holdings and Miscellaneous Topics—Consolidated Financial Statements
	Learning Objectives
	9.1 Intercompany Bond Holdings
10 Insolvency—Liquidation and Reorganization
	Learning Objectives
11 International Financial Reporting Standards
	Learning Objectives
	11.1 The Increasing Importance of International Accounting Standards
	11.2 Historical Perspective
	11.3 GAAP Hierarchy—U.S. Versus IFRS
	11.4 Similarities and Differences Between U.S. GAAP and IFRS
	11.5 Business Combination and Consolidation—U.S. GAAP Versus IFRS
	11.6 International Convergence Issues
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	ASC Exercises
	Problems
12 Accounting for Foreign Currency Transactions and Hedging Foreign Exchange Risk
	Learning Objectives
	12.1 Exchange Rates—Means of Translation
	12.2 Measured Versus Denominated
	12.3 Foreign Currency Transactions
	12.4 Using Forward Contracts as a Hedge
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
13 Translation of Financial Statements of Foreign Affiliates
	Learning Objectives
	13.1 Accounting for Operations in Foreign Countries
	13.2 Translating Financial Statements of Foreign Affiliates
	13.3 Objectives of Translation
	13.4 Translation Methods
	13.5 Identifying the Functional Currency
	13.6 Translation of Foreign Currency Financial Statements
	13.7 Translation of Foreign Financial Statements Illustrated
	13.8 Financial Statement Disclosure
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	ASC Exercises
	Problems
14 Reporting for Segments and for Interim Financial Periods
	Learning Objectives
	14.1 Need for Disaggregated Financial Data
	14.2 Standards of Financial Accounting and Reporting
	14.3 Interim Financial Reporting
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
15 Partnerships: Formation, Operation, and Ownership Changes
	Learning Objectives
	15.1 Partnership Defined
	15.2 Reasons for Forming a Partnership
	15.3 Characteristics of a Partnership
	15.4 Partnership Agreement
	15.5 Accounting for a Partnership
	15.6 Special Problems in Allocation of Income and Loss
	15.7 Financial Statement Presentation
	15.8 Changes in the Ownership of the Partnership
	15.9 Section A: Admission of a New Partner (Not a Business Combination)
	15.10 Section B: Admission of a New Partner that Qualifies as a Business Combination: GAAP Requires Goodwill Method
	15.11 Section C: Withdrawal of a Partner
	Summary
	Questions
	Exercises
	Problems
16 Partnership Liquidation
	Learning Objectives
	16.1 Steps in the Liquidation Process
	16.2 Priorities of Partnership and Personal Creditors
	16.3 Simple Liquidation Illustrated
	16.4 Installment Liquidation
	16.5 Incorporation of a Partnership
	Summary
	Questions
	Exercises
	Problems
17 Introduction to Fund Accounting
	Learning Objectives
	17.1 Classifications of Nonbusiness Organizations
	17.2 Distinctions Between Nonbusiness Organizations and Profit-Oriented Enterprises
	17.3 Financial Accounting and Reporting Standards for Nonbusiness Organizations
	17.4 Fund Accounting
	17.5 Comprehensive Illustration—General Fund
	17.6 Reporting Inventory and Prepayments in the Financial Statements
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
18 Introduction to Accounting for State and Local Governmental Units
	Learning Objectives
	18.1 The History of Generally Accepted Governmental Accounting Standards
	18.2 The Structure of Governmental Accounting
	18.3 Governmental Fund Entities
	18.4 Proprietary Funds
	18.5 Fiduciary Funds
	18.6 Capital Assets and Long-Term Debt
	18.7 External Reporting Requirements (GASB Statement No. 34)
	18.8 Government Fund-Based Reporting
	18.9 Government-Wide Reporting
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
19 Accounting for Nongovernment Nonbusiness Organizations: Colleges and Universities, Hospitals and Other Health Care Organizations
	Learning Objectives
	19.1 Sources of Generally Accepted Accounting Standards for Nongovernment Nonbusiness Organizations
	19.2 Financial Reporting for Not-for-Profit Entities
	19.3 Fund Accounting and Accrual Accounting
	19.4 Contributions
	19.5 Accounting for Current Funds
	19.6 Accounting for Plant Funds
	19.7 Accounting for Endowment Funds
	19.8 Accounting for Investments
	19.9 Accounting For Loan Funds
	19.10 Accounting for Agency (Custodial) Funds
	19.11 Accounting for Annuity and Life Income Funds
	19.12 Issues Relating to Colleges and Universities
	Summary
	Questions
	Analyzing Financial Statements
	Exercises
	Problems
Glossary
Index
EULA