Intermediate Accounting

Cover
Title Page
Copyright Page
About the Authors
Brief Contents
Contents
Preface
Acknowledgments
Chapter 11: Current Liabilities and Contingencies
	A. Introduction
	B. Definition, Classification, and Measurement of Liabilities
		1. Liabilities Defined
		2. Recognition
		3. Financial and Non-Financial Liabilities
		4. Current Versus Non-Current Liabilities
		5. Initial and Subsequent Measurement
	C. Current Liabilities
		1. Trade Payables
		2. Common Non-Trade Payables
		3. Notes Payable
		4. Credit (Loan) Facilities
		5. Warranties
		6. Deferred Revenues
		7. Customer Incentives
		8. Other Current Liabilities
	D. Contingencies
		1. Contingencies Involving Potential Outflows
		2. Contingencies Involving Potential Inflows
		3. Treatment of Contingencies Under ASPE
	E. Commitments and Guarantees
		1. Commitments
		2. Guarantees
	F. Presentation and Disclosure
	G. Substantive Differences Between Relevant IFRS and ASPE
	H. Standards in Transition
	I. Summary
	J. Answers to Checkpoint Questions
	K. Glossary
	L. References
	M. Problems
	N. Mini-Cases
Chapter 12: Non-Current Financial Liabilities
	A. Introduction
		1. Overview
		2. Financial Leverage
		3. Debt-Rating Agencies
	B. Common Non-Current Financial Liabilities
		1. Notes Payable
		2. Bonds
	C. Initial Measurement
		1. Debt Exchanged for Non-Cash Assets
		2. Debt Issued at Non-Market Rates of Interest
		3. Compound Financial Instruments
		4. Interest Rates and how they Impact the Selling Price of Bonds
		5. Determining the Sales Price of a Bond when the Market Rate of Interest is Given
		6. Timing of Bond Issuance
	D. Subsequent Measurement
		1. Effective Interest Rate
		2. Amortization Using the Effective Interest Method
		3. Amortization Using the Straight-Line Method
	E. Derecognition
		1. Derecognition at Maturity
		2. Derecognition Prior to Maturity
		3. Derecognition Through Offsetting and In-Substance Defeasance
	F. Putting It All Together—A Comprehensive Bond Example
	G. Other Issues
		1. Decommissioning and Site Restoration Obligations
		2. Off-Balance-Sheet Obligations
		3. Bonds Denominated in Foreign Currency
	H. Presentation and Disclosure
	I. Substantive Differences Between Relevant IFRS and ASPE
	J. Standards in Transition
	K. Summary
	L. Answers to Checkpoint Questions
	M. Glossary
	N. References
	O. Problems
	P. Mini-Cases
Chapter 13: Equities
	A. Introduction
	B. Components of Equity for Accounting Purposes
		1. Contributed Capital
		2. Retained Earnings
		3. Accumulated Other Comprehensive Income (AOCI)
		4. Summary
	C. Equity Transactions Relating to Contributed Capital
		1. Issuance of Shares (Recognition and Initial Measurement)
		2. Stock Splits (Subsequent Measurement)
		3. Reacquisition of Shares (Derecognition)
	D. Equity Transactions Relating to Retained Earnings
		1. Cash Dividends
		2. Stock Dividends
		3. Property Dividends (Dividends in Kind)
		4. Dividend Preference
	E. Statement of Changes in Equity
	F. Presentation and Disclosure
	G. Comprehensive Illustration of Equity Transactions
	H. Substantive Differences Between Relevant IFRS and ASPE
	I. Appendix: Par Value Shares and Treasury Shares
		1. Par Value Shares
		2. Treasury Shares
	J. Summary
	K. Answers to Checkpoint Questions
	L. Glossary
	M. References
	N. Problems
	O. Mini-Cases
Chapter 14: Complex Financial Instruments
	A. Introduction
	B. Types of Financial Instruments
		1. Basic Financial Assets, Financial Liabilities, and Equity Instruments
		2. Derivative Financial Instruments
		3. Compound Financial Instruments
	C. Accounting for Compound Financial Instruments
		1. Initial Measurement
		2. Subsequent Measurement
		3. Derecognition of Debt Prior to Maturity or Conversion into Equity
		4. Derecognition of Debt Through Exercise of the Conversion Option
		5. Derecognition of Debt at Maturity
	D. Accounting for Warrants
		1. Initial Measurement
		2. Subsequent Measurement
		3. Derecognition Through Exercise of the Warrants
		4. Derecognition when the Warrants Expire
	E. Accounting for Stock Compensation Plans
		1. Employee Stock Option Plans (ESOPs)
		2. Stock Appreciation Rights (SARs)
	F. Presentation and Disclosure
	G. Substantive Differences Between Relevant IFRS and ASPE
	H. Appendix: Derivatives and Hedging
		1. Derivatives—Forwards, Futures, and Swaps
		2. Accounting for Derivatives
		3. Hedging Overview
		4. Hedge Accounting
		5. Fair Value Hedges
		6. Cash Flow Hedges
	I. Summary
	J. Answers to Checkpoint Questions
	K. Glossary
	L. References
	M. Problems
	N. Mini-Cases
Chapter 15: Earnings per Share
	A. Introduction to Basic and Diluted Earnings per Share
	B. Calculating Basic EPS
		1. Numerator: Net Income Available to Ordinary Shareholders
		2. Denominator: Weighted Average Number of Ordinary Shares Outstanding
		3. Complicating Factors
		4. Basic EPS
	C. Calculating Diluted EPS
		1. Identify All Potential Ordinary Shares
		2. Compute Incremental EPS for All Potential Ordinary Shares
		3. Rank Order Incremental EPS
		4. Sequentially Compare Incremental EPS to Provisional EPS to Determine Diluted EPS
		5. Effect of Discontinued Operations
		6. Diluted EPS when Basic EPS is Negative
		7. Other Considerations
		8. Putting it All Together: A Comprehensive Example
	D. Presentation and Disclosure
		1. Presentation
		2. Disclosure
	E. Substantive Differences Between Relevant IFRS and ASPE
	F. Summary
	G. Answers to Checkpoint Questions
	H. Glossary
	I. References
	J. Problems
	K. Mini-Cases
Chapter 16: Pensions and Other Employee Future Benefits
	A. Introduction
	B. Nature of Pension Plans
		1. Defined Contribution Plans
		2. Defined Benefit Plans
	C. Accounting for Defined Contribution Plans
	D. Accounting for Defined Benefit Plans
		1. What to Account for in Defined Benefit Plans
		2. Implementing Pension Accounting for Defined Benefit Plans
		3. Presentation and Disclosure
	E. Other Issues
		1. Settlements
		2. Asset Ceiling
		3. Multi-Employer Plans
		4. Other Long-Term Employee Benefits
	F. A Practical Illustration: Canadian Tire Corporation
	G. Substantive Differences Between Relevant IFRS and ASPE
	H. Summary
	I. Answers to Checkpoint Questions
	J. Glossary
	K. References
	L. Problems
	M. Mini-Cases
Chapter 17: Accounting for Leases
	A. Introduction
	B. Economics of Leasing
	C. Classification of Leases—Lessor
		1. The Primary Consideration when Classifying Leases
		2. Indicators Supporting the Classification of Leases
		3. Additional Considerations for Classification of Real Estate Leases
	D. Accounting for Operating Leases—Lessor
	E. Accounting for Finance Leases—Lessor
		1. Recognition and Initial Measurement
		2. Subsequent Measurement
		3. Derecognition
		4. Lessor’s Preference for Classifying Leases as Finance Leases, Rather than Operating Leases
	F. Presentation and Disclosure of Leases—Lessor
		1. Presentation
		2. Disclosure
	G. Accounting for Leases—Lessee
		1. Recognition and Initial Measurement of Lease Liabilities
		2. Recognition and Initial Measurement of Right-of-Use Assets
		3. Applying the Recognition and Initial Measurement Criteria for Right-of-Use Assets and Lease Liabilities
		4. Subsequent Measurement of Lease Liabilities
		5. Subsequent Measurement of Right-of-Use Assets
		6. Applying the Subsequent Measurement Criteria for Right-of-Use Assets and Lease Liabilities
		7. Practical Expedients
		8. Derecognition
	H. Presentation and Disclosure of Leases—Lessee
		1. Presentation
		2. Disclosure
	I. Accounting for Sale and Leaseback Transactions
		1. Accounting for a Sale and Leaseback Transaction—Sales Criteria Met
		2. Accounting for a Sale and Leaseback Transaction—Sales Criteria not Met
	J. Substantive Differences Between Relevant IFRS and ASPE
		1. Lessor’s Lease Capitalization Criteria
		2. Lessor’s Classification of Finance (Capital) Leases
		3. Lessee’s Lease Capitalization Criteria
		4. Lessee’s Discount Rate for Present Value Calculations
		5. Lessee’s Inclusion of Residual Value Guarantees in the Determination of Lease Payments
		6. Lessee’s Accounting for the Lease and Related Non-Lease Components in the Lease Contract
	K. Summary
	L. Answers to Checkpoint Questions
	M. Glossary
	N. References
	O. Problems
	P. Mini-Cases
Chapter 18: Accounting for Income Taxes
	A. Introduction
	B. Methods of Accounting for Income Taxes
		1. Taxes Payable Method
		2. Tax Allocation Methods
		3. Summary of Alternative Approaches
	C. Applying the Accrual Method: Permanent and Temporary Differences
		1. Permanent Differences
		2. Temporary Differences
		3. Disposals of Depreciable Assets
		4. Schedule for Analyzing Permanent and Temporary Differences
	D. Changes in Tax Rates
	E. Tax Losses
		1. Carryback of Tax Losses
		2. Carryforward of Tax Losses
	F. Measurement: No Discounting for Time Value of Money
	G. Presentation and Disclosure
		1. Presentation and Disclosure of Income Tax Expense
		2. Presentation and Disclosure of Income Tax Assets and Liabilities
	H. A Practical Illustration: Canadian Tire Corporation
	I. Substantive Differences Between Relevant IFRS and ASPE
	J. Summary
	K. Answers to Checkpoint Questions
	L. Glossary
	M. References
	N. Problems
	O. Mini-Cases
Chapter 19: Accounting Changes
	A. Types of Accounting Changes
		1. Changes in Accounting Policy
		2. Corrections of Errors from Prior Periods
		3. Changes in Accounting Estimates
		4. Summary
	B. Treatments for Accounting Changes
		1. Prospective Adjustment
		2. Retrospective Adjustment
	C. Changes in Accounting Standards
	D. Implementing Retrospective Adjustments
		1. Retrospective Adjustments Involving only Presentation
		2. Retrospective Adjustments Affecting only Temporary Accounts
		3. Retrospective Adjustments Affecting Both Permanent and Temporary Accounts
	E. Summary
	F. Answers to Checkpoint Questions
	G. Glossary
	H. References
	I. Problems
	J. Mini-Case
Chapter 20: Statement of Cash Flows
	A. Introduction
	B. Presentation of the Statement of Cash Flows
		1. Cash and Cash Equivalents Defined
		2. Classifying Cash Flows
		3. Format of the Statement of Cash Flows
		4. Format of the Statement of Cash Flows Under Aspe
	C. Preparing the Statement of Cash Flows
		1. Sources of Information
		2. The Process—Indirect Method
		3. The Process—Direct Method
		4. Effects of Specific Items on the Statement of Cash Flows
		5. Putting it all Together—Comprehensive Examples
	D. Presentation and Disclosure
	E. Substantive Differences Between IFRS and ASPE
	F. Summary
	G. Answers to Checkpoint Questions
	H. Glossary
	I. References
	J. Problems
	K. Mini-Cases
Appendix A: Time Value of Money and Simple Valuation Techniques
Appendix B: Case Solving, Comprehensive Cases, and Capstone Cases
Appendix C: Canadian Tire Corporation 2016 Consolidated Financial Statements
Glossary
Index
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