Financial accounting : with International Financial Reporting Standards (ch1-9 only)

Financial Accounting with International Financial Reporting Standards
Brief Contents
From the Authors
Author Commitment
Hallmark Features
Contents
Thank You
1 Accounting in Action
	Knowing the Numbers
	Accounting Activities and Users
		Three Activities
		Who Uses Accounting Data
	The Building Blocks of Accounting
		Ethics in Financial Reporting
		Accounting Standards
		Measurement Principles
		Assumptions
	The Accounting Equation
		Assets
		Liabilities
		Equity
	Analyzing Business Transactions
		Accounting Transactions
		Transaction Analysis
		Summary of Transactions
	Financial Statements
		Income Statement
		Retained Earnings Statement
		Statement of Financial Position
		Statement of Cash Flows
		Comprehensive Income Statement
	Appendix 1A: Career Opportunities in Accounting
		Public Accounting
		Private Accounting
		Governmental Accounting
		Forensic Accounting
	A Look at U.S. GAAP
2 The Recording Process
	Accidents Happen: Bank of Taiwan
	Accounts, Debits, and Credits
		The Account
		Debits and Credits
		Equity Relationships
		Summary of Debit/Credit Rules
	The Journal
		The Recording Process
		The Journal
	The Ledger and Posting
		The Ledger
		Posting
		Chart of Accounts
		The Recording Process Illustrated
		Summary Illustration of Journalizing and Posting
	The Trial Balance
		Limitations of a Trial Balance
		Locating Errors
		Currency Signs and Underlining
	A Look at U.S. GAAP
3 Adjusting the Accounts
	What Was Your Profit?: Cadbury
	Accrual-Basis Accounting and Adjusting Entries
		Fiscal and Calendar Years
		Accrual- versus Cash-Basis Accounting
		Recognizing Revenues and Expenses
		The Need for Adjusting Entries
		Types of Adjusting Entries
	Adjusting Entries for Deferrals
		Prepaid Expenses
		Unearned Revenues
	Adjusting Entries for Accruals
		Accrued Revenues
		Accrued Expenses
		Summary of Basic Relationships
	Adjusted Trial Balance and Financial Statements
		Preparing the Adjusted Trial Balance
		Preparing Financial Statements
	Appendix 3A: Alternative Treatment of Deferrals
		Prepaid Expenses
		Unearned Revenues
		Summary of Additional Adjustment Relationships
	Appendix 3B: Financial Reporting Concepts
		Qualities of Useful Information
		Assumptions in Financial Reporting
		Principles in Financial Reporting
		Cost Constraint
	A Look at U.S. GAAP
4 Completing the Accounting Cycle
	Speaking the Same Language: IASB
	The Worksheet
		Steps in Preparing a Worksheet
		Preparing Financial Statements from a Worksheet
		Preparing Adjusting Entries from a Worksheet
	Closing the Books
		Preparing Closing Entries
		Posting Closing Entries
		Preparing a Post-Closing Trial Balance
	The Accounting Cycle and Correcting Entries
		Summary of the Accounting Cycle
		Reversing Entries—An Optional Step
		Correcting Entries—An Avoidable Step
	Classified Statement of Financial Position
		Intangible Assets
		Property, Plant, and Equipment
		Long-Term Investments
		Current Assets
		Equity
		Non-Current Liabilities
		Current Liabilities
	Appendix 4A: Reversing Entries
		Reversing Entries Example
	A Look at U.S. GAAP
5 Accounting for Merchandise Operations
	Who Doesn’t Shop?: Carrefour
	Merchandising Operations and Inventory Systems
		Operating Cycles
		Flow of Costs
	Recording Purchases Under a Perpetual System
		Freight Costs
		Purchase Returns and Allowances
		Purchase Discounts
		Summary of Purchasing Transactions
	Recording Sales Under a Perpetual System
		Sales Returns and Allowances
		Sales Discounts
	The Accounting Cycle for a Merchandising Company
		Adjusting Entries
		Closing Entries
		Summary of Merchandising Entries
	Financial Statements for a Merchandiser
		Income Statement
		Classified Statement of Financial Position
	Appendix 5A: Worksheet for a Merchandising Company
		Using a Worksheet
	Appendix 5B: Periodic Inventory System
		Determining Cost of Goods Sold Under a Periodic System
		Recording Merchandise Transactions
		Recording Purchases of Merchandise
		Recording Sales of Merchandise
		Journalizing and Posting Closing Entries
		Using a Worksheet
	A Look at U.S. GAAP
6 Inventories
	“Where Is That Spare Bulldozer Blade?”: Komatsu
	Classifying and Determining Inventory
		Classifying Inventory
		Determining Inventory Quantities
	Inventory Methods and Financial Effects
		Specific Identification
		Cost Flow Assumptions
		Financial Statement and Tax Effects of Cost Flow Methods
		Using Inventory Cost Flow Methods Consistently
	Effects of Inventory Errors
		Income Statement Effects
		Statement of Financial Position Effects
	Inventory Statement Presentation and Analysis
		Presentation
		Lower-of-Cost-or-Net Realizable Value
		Analysis
	Appendix 6A: Inventory Cost Flow Methods in Perpetual Inventory Systems
		First-In, First-Out (FIFO)
		Average-Cost
	Appendix 6B: Estimating Inventories
		Gross Profit Method
		Retail Inventory Method
	Appendix 6C: LIFO Inventory Method
	A Look at U.S. GAAP
7 Fraud, Internal Control, and Cash
	Minding the Money at Nick’s: Nick’s Steakhouse and Pizza
	Fraud and Internal Control
		Fraud
		Internal Control
		Principles of Internal Control Activities
		Limitations of Internal Control
	Cash Controls
		Cash Receipts Controls
		Cash Disbursements Controls
		Petty Cash Fund
	Control Features of a Bank Account
		Making Bank Deposits
		Writing Checks
		Electronic Funds Transfer (EFT) System
		Bank Statements
		Reconciling the Bank Account
	Reporting Cash
		Cash Equivalents
		Restricted Cash
	A Look at U.S. GAAP
8 Accounting for Receivables
	Are You Going to Pay Me—or Not?: BNP Paribas
	Recognition of Accounts Receivable
		Types of Receivables
		Recognizing Accounts Receivable
	Valuation and Disposition of Accounts Receivable
		Valuing Accounts Receivable
		Disposing of Accounts Receivable
	Notes Receivable
		Determining the Maturity Date
		Computing Interest
		Recognizing Notes Receivable
		Valuing Notes Receivable
		Disposing of Notes Receivable
	Presentation and Analysis
		Presentation
		Analysis
	A Look at U.S. GAAP
9 Plant Assets, Natural Resources, and Intangible Assets
	How Much for a Ride to the Beach?: Rent-A-Wreck
	Plant Asset Expenditures
		Determining the Cost of Plant Assets
		Expenditures During Useful Life
	Depreciation Methods
		Factors in Computing Depreciation
		Depreciation Methods
		Component Depreciation
		Depreciation and Income Taxes
		Revaluation of Plant Assets
		Revising Periodic Depreciation
	Plant Asset Disposals
		Retirement of Plant Assets
		Sale of Plant Assets
	Natural Resources and Intangible Assets
		Natural Resources and Depletion
		Intangible Assets
	Statement Presentation and Analysis
		Presentation
		Analysis
	Appendix 9A: Exchange of Plant Assets
		Loss Treatment
		Gain Treatment
	A Look at U.S. GAAP
10 Current Liabilities
	Financing His Dreams: Wilbert Murdock
	Accounting for Current Liabilities
		What Is a Current Liability?
		Notes Payable
		Value-Added and Sales Taxes Payable
		Unearned Revenues
		Salaries and Wages
		Current Maturities of Long-Term Debt
	Reporting and Analyzing Current Liabilities
		Reporting Uncertainty
		Reporting of Current Liabilities
		Analysis of Current Liabilities
	A Look at U.S. GAAP
11 Non-Current Liabilities
	Are We Living on Borrowed Time?
	Overview of Bonds
		Types of Bonds
		Issuing Procedures
		Bond Trading
		Determining the Market Price of a Bond
	Bond Transactions
		Issuing Bonds at Face Value
		Discount or Premium on Bonds
		Issuing Bonds at a Discount
		Issuing Bonds at a Premium
		Redeeming Bonds
	Accounting for Non-Current Liabilities
		Long-Term Notes Payable
		Lease Liabilities
	Reporting and Analyzing Non-Current Liabilities
		Presentation
		Analysis
		Debt and Equity Financing
	Appendix 11A: Effective-Interest Method of Bond Amortization
		Amortizing Bond Discount
		Amortizing Bond Premium
	Appendix 11B: Straight-Line Amortization
		Amortizing Bond Discount
		Amortizing Bond Premium
	A Look at U.S. GAAP
12 Corporations: Organization, Share Transactions, and Equity
	To the Victor Go the Spoils: adidas
	The Corporate Form of Organization
		Characteristics of a Corporation
		Forming a Corporation
		Shareholder Rights
		Share Issue Considerations
		Corporate Capital
	Accounting for Share Transactions
		Accounting for Ordinary Shares
		Accounting for Preference Shares
		Accounting for Treasury Shares
	Dividends and Splits
		Accounting for Cash Dividends
		Dividend Preferences
		Accounting for Share Dividends
		Accounting for Share Splits
	Reporting and Analyzing Equity
		Retained Earnings
		Presentation of Statement of Financial Position
		Analysis
	Appendix 12A: Statement of Changes in Equity
	Appendix 12B: Book Value—Another per Share Amount
		Book Value per Share
		Book Value versus Market Price
	A Look at U.S. GAAP
13 Investments
	Playing for Fun and Profit: Sony
	Debt Investments
		Why Companies Invest
		Accounting for Debt Investments
	Share Investments
		Holdings of Less than 20%
		Holdings Between 20% and 50%
		Holdings of More than 50%
	Valuing and Reporting Investments
		Categories of Securities
		Statement of Financial Position Presentation
		Presentation of Realized and Unrealized Gain or Loss
		Classified Statement of Financial Position
	Appendix 13A: Preparing Consolidated Financial Statements
		Consolidated Statement of Financial Position
		Consolidated Income Statement
	A Look at U.S. GAAP
14 Statement of Cash Flows
	What Should We Do with This Cash?: Keyence
	Statement of Cash Flows: Usefulness and Format
		Usefulness of the Statement of Cash Flows
		Classification of Cash Flows
		Significant Non-Cash Activities
		Format of the Statement of Cash Flows
	Preparing the Statement of Cash Flows—Indirect Method
		Indirect and Direct Methods
		Indirect Method—Computer Services International
		Step 1: Operating Activities
		Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method
		Step 2: Investing and Financing Activities
		Step 3: Net Change in Cash
	Using Cash Flows to Evaluate a Company
		Free Cash Flow
	Appendix 14A: Statement of Cash Flows—Direct Method
		Step 1: Operating Activities
		Step 2: Investing and Financing Activities
		Step 3: Net Change in Cash
	Appendix 14B: Statement of Cash Flows—T-Account Approach
	A Look at U.S. GAAP
15 Financial Analysis: The Big Picture
	Making Money the Old-Fashioned Way: Li Ka-shing
	Basics of Financial Statement Analysis
		Need for Comparative Analysis
		Tools of Analysis
		Horizontal Analysis
		Vertical Analysis
	Ratio Analysis
		Liquidity Ratios
		Profitability Ratios
		Solvency Ratios
		Summary of Ratios
	Sustainable Income
		Discontinued Operations
		Changes in Accounting Principle
		Comprehensive Income
	A Look at U.S. GAAP
Appendix A Specimen Financial Statements: Taiwan Semiconductor Manufacturing Company, Limited
Appendix B Specimen Financial Statements: Nestlé SA
Appendix C Specimen Financial Statements: Delfi Limited
Appendix D Specimen Financial Statements: Apple Inc.
Appendix E Time Value of Money
	Interest and Future Values
		Nature of Interest
		Future Value of a Single Amount
		Future Value of an Annuity
	Present Value Concepts
		Present Value Variables
		Present Value of a Single Amount
		Present Value of an Annuity
		Time Periods and Discounting
		Present Value of a Long-Term Note or Bond
	Using Financial Calculators
		Present Value of a Single Sum
		Present Value of an Annuity
		Useful Applications of the Financial Calculator
Appendix F Accounting for Partnerships
	Forming a Partnership
		Characteristics of Partnerships
		Organizations with Partnership Characteristics
		Advantages and Disadvantages of Partnerships
		The Partnership Agreement
		Accounting for a Partnership Formation
	Accounting for Net Income or Net Loss
		Dividing Net Income or Net Loss
		Partnership Financial Statements
	Liquidation of a Partnership
		No Capital Deficiency
		Capital Deficiency
	Admissions and Withdrawals of Partners
		Admission of a Partner
		Withdrawal of a Partner
Appendix G Subsidiary Ledgers and Special Journals
	Subsidiary Ledgers
		Subsidiary Ledger Example
		Advantages of Subsidiary Ledgers
	Special Journals
		Sales Journal
		Cash Receipts Journal
		Purchases Journal
		Cash Payments Journal
		Effects of Special Journals on the General Journal
		Cybersecurity: A Final Comment
Company Index
Subject Index
EULA