Intermediate Accounting

Cover
Title Page
Copyright
Brief Contents
From the Authors
About the Authors
New to This Edition
Reimagined Pedagogy
Data Analytics
Engaging Online Student Resources and Tools
Student Assessment
Preparing for the CPA Exam
Acknowledgments
Table of Contents
Chapter 1: The Environment and Conceptual Framework of Financial Reporting
	1.1 Financial Reporting Environment
		Importance of Accounting and Decision-Usefulness
		The Need to Develop Standards
		Securities and Exchange Commission (SEC)
		Accounting Matters Global Markets
		Accounting Matters Private Company Perspectives
		Financial Accounting Standards Board (FASB)
		Other Organizations Involved
		FASB Codification
		Accounting Matters Is There a Rule for That?
	1.2 Conceptual Framework
		Accounting Matters What’s Your Principle?
		Objective
		Qualitative Characteristics of Accounting Information
		Accounting Matters Living in a Material World
		Accounting Matters What’s in It for Me?
		Elements
	1.3 Assumptions and Principles
		Assumptions
		Principles of Accounting
		Summary of the Structure
		Accounting Matters Be Responsible
	1.4 Major Challenges in Financial Reporting
		GAAP in a Political Environment
		The Expectations Gap
		Financial Reporting Issues
		Analytics in Action Big Data for Big Decisions
		Ethics in the Environment of Financial Accounting
Chapter 2: The Accounting Information System
	2.1 Accounting Information System
		Computerized Accounting Systems
		Accounting Matters Accounting and Bots?
		Manual Accounting Systems
		Debits and Credits
		The Accounting Equation
		Financial Statements and Ownership Structure
		The Accounting Cycle
	2.2 Analyze and Record Business Transactions
		The Recording Process
		The Journal
		The Ledger
		Accounting Matters Working on the Chain Gang
		Chart of Accounts
		The Recording Process Illustrated
		Summary Illustration of Journalizing and Posting
		Analytics in Action This System Is Full of Data
		Trial Balance
	2.3 Adjusting Entries
		Types of Adjusting Entries
		Adjusting Entries for Deferrals
		Adjusting Entries for Accruals
		Adjusted Trial Balance
	2.4 Preparing Financial Statements
		Closing
		Post-Closing Trial Balance
		Reversing Entries—An Optional Step
		The Accounting Cycle Summarized
	2.5 Financial Statements for a Merchandising Company
		Income Statement
		Retained Earnings Statement
		Balance Sheet
		Closing Entries
	Appendix 2A: Cash-Basis Accounting versus Accrual-Basis Accounting
		Conversion from Cash Basis to Accrual Basis
		Theoretical Weaknesses of the Cash Basis
	Appendix 2B: Using Reversing Entries
		Illustration of Reversing Entries—Accruals
		Illustration of Reversing Entries—Deferrals
		Summary of Reversing Entries
	Appendix 2C: Using a Worksheet: The Accounting Cycle Revisited
		Worksheet Columns
		Adjustments Entered on the Worksheet
		Analytics in Action Activities
Chapter 3: Income Statement, Related Information, and Revenue Recognition
	3.1 Income Statement
		Usefulness of the Income Statement
		Limitations of the Income Statement
		Content of the Income Statement
		Analytics in Action Income Statement Dashboards
		Accounting Matters Top Line or Bottom Line?
	3.2 Reporting Special Income Items
		Discontinued Operations
		Other Comprehensive Income
	3.3 Stockholders’ Equity Statements
		Retained Earnings
		Statement of Stockholders’ Equity
		Balance Sheet Presentation
	3.4 Revenue Recognition—The Fundamentals
		Revenue Recognition Principle
		Overview of the Five-Step Model
		Summary
	3.5 Quality of Earnings
		Earnings Management
		Non-GAAP Reporting
		Fraudulent Financial Reporting
		Response by the Profession
		Accounting Matters Good Accounting Does Matter
	Appendix 3A: Accounting Changes and Errors
		Changes in Accounting Principle
		Changes in Accounting Estimates
		Corrections of Errors
		Analytics in Action Activities
Chapter 4: Balance Sheet and Statement of Cash Flows
	4.1 Balance Sheet
		Usefulness of the Balance Sheet
		Limitations of the Balance Sheet
		Accounting Matters Stuck in Port
		Classification in the Balance Sheet
		Analytics in Action Working Capital and Analytics?
		Accounting Matters Cryptocurrency: Is It Cash?
		Accounting Matters When Do I Get Paid?
		Accounting Matters? Warning Signals
		Format of the Balance Sheet
	4.2 Statement of Cash Flows
		Purpose of the Statement of Cash Flows
		Accounting Matters Watch That Cash Flow
		Content of the Statement of Cash Flows
		Preparation of the Statement of Cash Flows
		Usefulness of the Statement of Cash Flows
		Accounting Matters Cash Flow Conundrum
	Appendix 4A: Additional Information
		Notes to the Financial Statements
		Techniques of Disclosure
	Appendix 4B: Ratio Analysis—A Reference
		Analytics in Action Activities
Chapter 5: Accounting and the Time Value of Money
	5.1 Basic Time Value Concepts
		The Importance of Time Value Concepts
		Understanding Interest
		How to Solve Compound Interest Problems
		Accounting Matters Don’t Put Off Your Taxes!
	5.2 Single-Sum Problems
		Future Value of a Single Sum
		Present Value of a Single Sum
		Solving for Other Unknowns in Single-Sum Problems
	5.3 Annuities (Future Value)
		Future Value of an Ordinary Annuity
		Future Value of an Annuity Due
		Solving for Unknowns in Future Value of Annuity Problems
	5.4 Annuities (Present Value)
		Present Value of an Ordinary Annuity
		Accounting Matters Up in Smoke
		Present Value of an Annuity Due
		Solving for Unknowns in Present Value of Annuity Problems
	5.5 Other Time Value of Money Issues
		Deferred Annuities
		Valuation of Long-Term Bonds
		Analytics in Action Using Present Value for Investment Analysis
		Present Value Measurement
		Appendix 5A: Technology Tools for Time Value of Money Problems
		Using Excel to Solve Time Value of Money Problems
		Using Financial Calculators to Solve Time Value of Money Problems
		Benefits of Using Technology Tools
		Analytics in Action Activities
		Time Value of Money Tables
Chapter 6: Cash and Receivables
	6.1 Cash
		Reporting Cash
		Summary of Cash-Related Items
		Accounting Matters What Counts for Cash?
	6.2 Receivables
		Recognition of Accounts Receivable
		Measurement of the Transaction Price
		Variable Consideration
	6.3 Valuation of Accounts Receivable
		Direct Write-Off Method for Uncollectible Accounts (Non-GAAP)
		Allowance Method for Uncollectible Accounts (GAAP)
		Analytics in Action Predicting the Future
	6.4 Notes Receivable
		Recognition of Notes Receivable
		Valuation of Notes Receivable
	6.5 Other Issues
		Disposition of Receivable
		Accounting Matters Securitizations—Good or Bad?
		Presentation and Decision Analysis
		Accounting Matters A Foreign Affair
		Accounting Matters I’m Still Waiting
		Appendix 6A: Cash Controls
		Using Bank Accounts
		The Imprest Petty Cash System
		Physical Protection of Cash Balances
		Reconciliation of Bank Balances
		Appendix 6B: Collectibility Assessment Based on Expected Cash Flows
		Measurement of Collectibility
		Analytics in Action Activities
Chapter 7: Valuation of Inventories: A Cost-Basis Approach
	7.1 Inventory Issues
		Classification
		Inventory Cost Flow
		Inventory Control
		Accounting Matters Staying Lean
	7.2 Goods and Costs Included in Inventory
		Goods Included in Inventory
		Accounting Matters No Parking
		Costs Included in Inventory
	7.3 Which Cost Flow Assumption to Adopt
		Cost Flow Assumptions
		Inventory Valuation Methods—A Summary Analysis
		Basis for Selection of Inventory Method
		Switching Inventory Methods
		Accounting Matters The Itch to Switch?
	7.4 Special Issues Related to LIFO
		LIFO Reserve
		LIFO Liquidation
		Dollar-Value LIFO
		Comparison of LIFO Approaches
	7.5 Effect of Inventory Errors
		Ending Inventory Misstated
		Purchases and Inventory Misstated
		Analytics in Action Inventory Matters
		Analytics in Action Activities
Chapter 8: Inventories: Additional Valuation Issues
	8.1 Lower-of-Cost-or-Net Realizable Value
		Definition of Net Realizable Value
		Illustration of LCNRV
		Methods of Applying LCNRV
		Accounting Matters Where Does Excess Inventory Go?
		Adjusting Cost to NRV
		Accounting Matters Are These Profit Margins for Real?
	8.2 Lower-of-Cost-or-Market
		How Lower-of-Cost-or-Market Works
		Methods of Applying Lower-of-Cost-or-Market
		Evaluation of the LCNRV and LCM Rules
		Analytics in Action Role of Big Data in Inventory
	8.3 Other Valuation Approaches
		Valuation at Net Realizable Value
		Valuation Using Relative Sales Value
		Purchase Commitments—A Special Problem
	8.4 The Gross Profit Method of Estimating Inventory
		Computation of Gross Profit Percentage
		Evaluation of Gross Profit Method
	8.5 Retail Inventory Method
		Retail-Method Concepts
		Retail Inventory Method with Markups and Markdowns—Conventional Method
		Special Items Relating to Retail Method
		Evaluation of Retail Inventory Method
	8.6 Presentation and Decision Analysis
		Presentation of Inventories
		Decision Analysis of Inventories
		Appendix 8A: LIFO Retail Methods
		Stable Prices—LIFO Retail Method
		Fluctuating Prices—Dollar-Value LIFO Retail Method
		Subsequent Adjustments Under Dollar-Value LIFO Retail
		Changing from Conventional Retail to LIFO
		Analytics in Action Activities
Chapter 9: Acquisition and Disposition of Property, Plant, and Equipment
	9.1 Property, Plant, and Equipment
		Acquisition of Property, Plant, and Equipment
		Cost of Land
		Cost of Land Improvements
		Cost of Equipment
		Cost of Buildings
		Asset Retirement Costs and Obligations
	9.2 Interest Costs During Construction
		Qualifying Assets
		Capitalization Period
		Amount to Capitalize
		Other Issues
	9.3 Valuation of Property, Plant, and Equipment
		Deferred-Payment Contracts
		Lump-Sum Purchases
		Issuance of Stock
		Exchanges of Nonmonetary Assets
		Other Asset Valuation Issues
	9.4 Costs Subsequent to Acquisition
		Additions
		Improvements and Replacements
		Rearrangement and Reinstallation
		Repairs
		Summary of Costs Subsequent to Acquisition
		Accounting Matters Is that an Asset or an Expense?
	9.5 Disposition of Property, Plant, and Equipment
		Sale of Plant Assets
		Involuntary Conversion
		Analytics in Action Capital Expenditure Trends
		Appendix 9A: Accounting for Contributions
		Conditional Contribution
		Unconditional Contribution
		Exchange Transactions
		Analytics in Action Activities
Chapter 10: Depreciation, Impairments, and Depletion
	10.1 Depreciation—A Method of Cost Allocation
		Factors Involved in the Depreciation Process
		Methods of Depreciation
		Accounting Matters Depreciation Choices Abound
		Other Depreciation Issues
	10.2 Impairments
		Measuring Impairments
		Restoration of Impairment Loss
		Impairment of Assets to Be Disposed Of
	10.3 Depletion
		Establishing a Depletion Base
		Cost Allocation
		Estimating Recoverable Reserves
		Liquidating Dividends
		Continuing Controversy
		Accounting Matters Full-Cost or Successful-Efforts?
	10.4 Presentation and Decision Analysis
		Presentation of Property, Plant, Equipment, and Natural Resources
		Decision Analysis of Property, Plant, and Equipment
		Analytics in Action A Better Way to Estimate
		Appendix 10A: Income Tax Depreciation
		Modified Accelerated Cost Recovery System
		Optional Straight-Line Method
		Tax versus Book Depreciation
		Accounting Matters In the Bonus (Boomerang?)
		Analytics in Action Activities
Chapter 11: Intangible Assets
	11.1 Intangible Asset Issues
		Characteristics
		Valuation
		Accounting for Intangibles
		Accounting Matters Crypto at Cost
		Accounting Matters Purchase or Develop?
	11.2 Types and Presentation of Intangible Assets
		Marketing-Related Intangible Assets
		Customer-Related Intangible Assets
		Artistic-Related Intangible Assets
		Contract-Related Intangible Assets
		Technology-Related Intangible Assets
		Accounting Matters “It Was All Started by a Mouse"
		Presentation of Intangible Assets
	11.3 Goodwill
		Recording Goodwill
		Impairment of Goodwill
		Analytics in Action Goodwill Hunting?
		Bargain Purchase
		Accounting Matters Goodwill Impairments—Back to the Future
		Presentation of Goodwill
	11.4 Research and Development Costs
		Identifying R&D Activities
		Accounting for R&D Activities
		Costs Similar to R&D Costs
		Accounting Matters Branded
		Presentation of Research and Development Costs
		Accounting Matters “Alexa, Should R&D Costs Be Capitalized?"
		Analytics in Action Activities
Chapter 12: Current Liabilities and Contingencies
	12.1 Current Liabilities
		Payable Transactions
		Accounting Matters Is It a Liability?
		Employee-Related Payables
		Accounting Matters Salary, Benefits, and Gen Z
	12.2 Unearned Revenues
		Ticket Revenue
		Gift Cards
		Customer Advances
	12.3 Contingencies
		Loss Contingencies
		Gain Contingencies
	12.4 Presentation and Decision Analysis
		Presentation of Current Liabilities
		Analysis of Current Liabilities
		Accounting Matters I’ll Pay You Later
		Analytics in Action Current Ratio Analysis Can Lead to Innovation
		Analytics in Action Activities
Chapter 13: Long-Term Liabilities
	13.1 Bonds Payable
		Issuing Bonds
		Types of Bonds
		Valuation and Accounting for Bonds Payable
		Accounting Matters What Is My Bond Worth?
		Accounting Matters Hot, Hot, Hot
		Effective-Interest Method
	13.2 Extinguishment of Debt
		Accounting Matters Are All Bonds Created Equal?
	13.3 Long-Term Notes Payable
		Notes Issued at Face Value
		Notes Not Issued at Face Value
		Special Notes Payable Situations
		Mortgage Notes Payable
	13.4 Reporting and Analyzing Liabilities
		Fair Value Option
		Presentation and Decision Analysis
		Analytics in Action Helping to Put Debt into Perspective
		Appendix 13A: Troubled-Debt Restructuring
		Settlement of Debt
		Transfer of Assets
		Granting of Equity Interest
		Modification of Terms
		Example 1—No Gain for Debtor
		Example 2—Gain for Debtor
		Concluding Remarks
Chapter 14: Stockholders’ Equity
	14.1 Corporate Capital
		Characteristics of a Corporation
		Forming a Corporation
		Accounting Matters Getting In on the Ground Floor
		Components of Stockholders’ Equity
		Common Stock
		Accounting Matters A Class (B) Act
		Preferred Stock
	14.2 Reacquisition of Shares
		Treasury Stock
		Purchase of Treasury Stock
		Sale of Treasury Stock
		Retiring Treasury Stock
		Accounting Matters Buybacks—Good or Bad?
	14.3 Dividend Policy
		Financial Condition and Dividend Distributions
		Types of Dividends
		Stock Dividends and Stock Splits
		Accounting Matters Splitsville
	14.4 Presentation and Decision Analysis of Stockholders’ Equity
		Presentation
		Decision Analysis
		Analytics in Action Track Those Ratios!
		Appendix 14A: Dividend Preferences and Book Value per Share
		Dividend Preferences
		Book Value per Share
		Analytics in Action Activities
Chapter 15: Dilutive Securities and Earnings per Share
	15.1 Dilutive Securities
		Convertible Debt
		Convertible Preferred Stock
		Accounting Matters How Low Can You Go?
	15.2 Stock Warrants
		Stock Warrants Issued with Other Securities
		Rights to Subscribe to Additional Shares
	15.3 Stock Compensation Plans
		Stock Options
		Accounting Matters What’s the Debate About?
		Restricted-Stock Plans
		Employee Stock-Purchase Plans
		Trends in Stock Compensation Plans
		Disclosure of Compensation Plans
	15.4 Basic Earnings per Share
		Earnings per Share—Simple Capital Structure
	15.5 Diluted Earnings per Share
		Diluted EPS—Convertible Securities
		Diluted EPS—Options and Warrants
		Contingent Issue Agreement
		Antidilution Revisited
		EPS Presentation and Disclosure
		Summary of EPS Computation
		Analytics in Action Earnings per Share versus Net Income
		Appendix 15A: Accounting for Stock-Appreciation Rights
		SARs—Share-Based Equity Awards
		SARs—Share-Based Liability Awards
		Stock-Appreciation Rights Example
		Appendix 15B: Comprehensive Earnings per Share Example
		Diluted Earnings per Share
		Analytics in Action Activities
Chapter 16: Investments
	16.1 Investments in Debt Securities
		Overview of Debt Investments
		Debt Investment Classifications
		Held-to-Maturity Securities (Amortized Cost)
		Available-for-Sale Securities (Fair Value Through Other Comprehensive Income)
		Trading Securities (Fair Value Through Net Income)
		Accounting Matters To Have and to Hold
	16.2 Investments in Equity Securities
		Holdings of Less Than 20%
		Holdings Between 20% and 50% (Equity Method)
		Holdings of More Than 50% (Consolidation)
		Accounting Matters Who’s in Control Here?
	16.4 Other Financial Reporting Issues
		Fair Value Option
		Accounting Matters Fair Value Controversy
		Impairment of Value
		Presentation of Comprehensive Income
		Transfers Related to Debt Securities
		Summary of Reporting Treatment of Securities
		Analytics in Action Risky Retirement
	Appendix 16A: Accounting for Derivative Instruments
		Defining Derivatives
		Who Uses Derivatives, and Why?
		Basic Principles in Accounting for Derivatives
		Derivatives Used for Hedging
		Other Reporting Issues
		Comprehensive Hedge Accounting Example
		Controversy and Concluding Remarks
	Appendix 16B: Fair Value Disclosures
		Disclosure of Fair Value Information: Financial Instruments
		Disclosure of Fair Values: Impaired Assets or Liabilities
		Conclusion
		Analytics in Action Activities
Chapter 17: Revenue Recognition
	17.1 Fundamentals of Revenue Recognition
		Background
		Revenue Recognition Standard
		Example of the Five-Step Process: BEAN
	17.2 The Five-Step Process Revisited
		Identifying the Contract with Customers—Step 1
		Identifying Separate Performance Obligations— Step 2
		Determining the Transaction Price—Step 3
		Allocating the Transaction Price to Separate Performance Obligations—Step 4
		Recognizing Revenue When (or as) Each Performance Obligation Is Satisfied—Step 5
		Summary
	17.3 Accounting for Revenue Recognition Issues
		Sales Returns and Allowances
		Analytics in Action Are You Going to Keep That?
		Repurchase Agreements
		Bill-and-Hold Arrangements
		Principal-Agent Relationships
		Consignments
		Accounting Matters Did You Meet Your Target?
		Warranties
		Nonrefundable Upfront Fees
		Summary
	17.4 Presentation and Disclosure
		Presentation
		Disclosure
	Appendix 17A: Long-Term Construction Contracts
		Revenue Recognition over Time
		Percentage-of-Completion Method
		Cost-Recovery (Zero-Profit) Method
		Long-Term Contract Losses
	Appendix 17B: Revenue Recognition for Franchises
		Franchise Accounting
		Recognition of Franchise Rights Revenue
 over Time
		Analytics in Action Activities
Chapter 18: Accounting for Income Taxes
	18.1 Fundamentals of Accounting for Income Taxes
		Future Taxable Amounts and Deferred Taxes
		Accounting Matters Deferring Tax Payments, Bonus!
		Future Deductible Amounts and Deferred Taxes
		Deferred Tax Asset—Valuation Allowance
		Accounting Matters Deferred Tax Assets
	18.2 Additional Considerations
		Specific Differences
		Tax Rate Considerations
		Accounting Matters Lower Tax Rate—Good or Bad?
	18.3 Accounting for Net Operating Losses
		Loss Carryforward
		Loss Carryforward Example
		Accounting Matters NOLs: Good News or Bad
	18.4 Financial Statement Presentation
		Balance Sheet
		Note Disclosure
		Income Statement
		Accounting Matters Uncertain Tax Positions
		Analytics in Action Visualizing Taxes
		A Summary of the Asset-Liability Method
	Appendix 18A: Comprehensive Example of Interperiod Tax Allocation
		First Year—2024
		Second Year—2025
	Appendix 18B: Accounting for Net Operating Loss Carrybacks
		Loss Carryback
		Analytics in Action Activities
Chapter 19: Accounting for Pensions and Postretirement Benefits
	19.1 Fundamentals of Pension Plan Accounting
		Pension Plans
		Accounting Matters Which Plan Is Right for You?
		The Role of Actuaries in Pension Accounting
		Measures of the Liability
		Accounting Matters Roller Coaster
		Components of Pension Expense
	19.2 Using a Pension Worksheet
		Funded Status
	19.3 Prior Service Cost (PSC)
		Amortization
		Funded Status—2026
	19.4 Gains and Losses
		Smoothing Unexpected Gains and Losses on Plan Assets
		Smoothing Unexpected Gains and Losses on the Pension Liability
		Corridor Amortization
		Accounting Matters Bye Bye Corridor
		Funded Status—2027
	19.5 Reporting Pension Plans in Financial Statements
		Assets and Liabilities
		Net Income
		Comprehensive Income
		Within the Notes to the Financial Statements
		Special Issues
		Accounting Matters Who Guarantees the Guarantor?
		Analytics in Action Pension De-Risking
		Concluding Observations
	Appendix 19A: Accounting for Postretirement Benefits
		Accounting Guidance
		Differences Between Pension Benefits and Healthcare Benefits
		Accounting Matters OPEBs—How Big Are They?
		Postretirement Benefits Accounting Provisions
		Illustrative Accounting Entries
		Disclosures in Notes to the Financial Statements
		Actuarial Assumptions and Conceptual Issues
		Analytics in Action Activities
Chapter 20: Accounting for Leases
	20.1 The Leasing Environment
		A Look at the Lessee
		Why Is Leasing So Popular?
		Accounting Matters Residual Value Regret
		Finance and Operating Leases (Lessee)
	20.2 Accounting for Finance Leases
		Lessee Accounting for Finance Leases: An Example
		Lessor Accounting for Sales-Type (Finance) Leases
		Accounting Matters Who Are the Lessors?
		Sales-Type (Finance) Lease Example
	20.3 Accounting for Operating Leases
		Lessee Accounting for Operating Leases
		Lessor Accounting for Operating Leases
	20.4 Special Lease Accounting Problems
		Residual Values
		Other Lease Adjustments
		Bargain Purchase Options
		Short-Term Leases
		Presentation and Decision Analysis
		Analytics in Action Connoisseur of Coffee or Wrangler of Big Data?
	Appendix 20A: Sale-Leasebacks
		Accounting Issues in Sale-Leaseback Transactions
		Sale-Leaseback Example
	Appendix 20B: Direct Financing Lease (Lessor)
		Direct Financing Lease Accounting
		Direct Financing Lease Example
		Analytics in Action Activities
Chapter 21: Accounting Changes and Error Analysis
	21.1 Accounting Changes
		Background
		Changes in Accounting Principle
		Accounting Matters The Cost of Change
		Other Accounting Change Issues
	21.2 Other Accounting Changes
		Changes in Accounting Estimates
		Changes in Reporting Entity
	21.3 Accounting Errors
		Prior Period Adjustments and Restatements
		Analytics in Action Big R versus Little r
		Summary of Accounting Changes and Correction of Errors
		Accounting Matters What’s Your Motivation?
	21.4 Error Analysis
		Reclassification Errors
		Balance Sheet and Income Statement Errors
		Comprehensive Example: Numerous Errors
		What Do the Numbers Mean? Guard the Financial Statements!
		Preparation of Financial Statements with Error Corrections
	Appendix 21A: Changing from or to the Equity Method
		Change from the Equity Method
		Change to the Equity Method
		Analytics in Action Activities
Chapter 22: Statement of Cash Flows
	22.1 Overview of Statement of Cash Flows
		Usefulness of the Statement of Cash Flows
		Classification of Cash Flows
		Accounting Matters How’s My Cash Flow?
		Format of the Statement of Cash Flows
	22.2 Preparing the Statement of Cash Flows
		Examples—Evergreen Inc
		Accounting Matters Cash Flow Management?
		Sources of Information for the Statement of Cash Flows
		Indirect Method—Additional Adjustments
	22.3 Net Cash Flow from Operating Activities—Direct Method
		Implementing the Direct Method
		Summary of Net Cash Flow from Operating Activities—Direct Method
		Accounting Matters Direct versus Indirect
	22.4 Special Problems in Statement Preparation
		Adjustments to Net Income
		Accounts Receivable (Net)
		Accounting Matters Cash During Challenging Times
		Other Working Capital Changes
		Net Losses
		Significant Noncash Transactions
		Analytics in Action Cash Flow Analysis
	22.5 Use of a Worksheet
		Preparation of the Worksheet
		Analysis of Transactions
		Preparation of Final Statement
		Analytics in Action Activities
Chapter 23: Full Disclosure in Financial Reporting
	23.1 Full Disclosure Principle
		Increase in Reporting Requirements
		Differential Disclosure
		Analytics in Action Disclosure—Quantity and Quality...and Visualizations?
		Notes to the Financial Statements
		Accounting Matters What Did You Tweet?
	23.2 Disclosure Issues
		Related Parties
		Post-Balance-Sheet Events (Subsequent Events)
		Reporting for Diversified (Conglomerate) Companies
		Interim Reports
	23.3 Auditor’s and Management’s Reports
		Auditor’s Report
		Accounting Matters Covid-19 and Going Concern
		Management’s Reports
		Accounting Matters Environmental, Social, and Governance Disclosures
	23.4 Current Reporting Issues
		Fraudulent Financial Reporting
		Internet Financial Reporting
		Reporting on Financial Forecasts and Projections
		Accounting Matters Can You Say That?
		Criteria for Making Accounting and Reporting Choices
	Appendix 23A: Basic Financial Statement Analysis
		Perspective on Financial Statement Analysis
		Ratio Analysis
		Limitations of Ratio Analysis
		Comparative Analysis
		Percentage (Common-Size) Analysis
		Analytics in Action Activities
Appendix A: Private Company Accounting
	A.1 The Private Company Council (PCC)
		Background on the PCC
		Private Company Decision-Making Framework
		PCC Accomplishments
	A.2 Private Company Alternatives for Intangible Assets and Goodwill
		Accounting for Identifiable Intangible Assets
		Accounting for Goodwill
	A.3 Summary
Appendix B: Specimen Financial Statements: The Procter & Gamble Company
Appendix C: Specimen Financial Statements: The Coca-Cola Company
Appendix D: Specimen Financial Statements: PepsiCo, Inc.
Company Index
Subject Index
Intermediate Accounting 18E: List of Accounts
EULA