Intermediate Accounting

Cover
Intermediate Accounting
About the Authors
Acknowledgments
We Are Grateful
Contents in Brief
Contents
Section 1 The Role of Accounting as an Information System
	Chapter 1 Environment and Theoretical Structure of Financial Accounting
		PART A: Financial Accounting Environment
			The Economic Environment and Financial Reporting
				The Investment-Credit Decision—A Cash Flow Perspective
				Cash versus Accrual Accounting
			The Development of Financial Accounting and Reporting Standards
				Historical Perspective and Standards
				The Standard-Setting Process
			Encouraging High-Quality Financial Reporting
				The Role of the Auditor
				Financial Reporting Reform
			A Move Away from Rules-Based Standards?
				Ethics in Accounting
		PART B: The Conceptual Framework
			Qualitative Characteristics of Financial Reporting Information
				Fundamental Qualitative Characteristics
				Enhancing Qualitative Characteristics
				Key Constraint: Cost Effectiveness
			Elements of Financial Statements
			Underlying Assumptions
				Economic Entity Assumption
				Going Concern Assumption
				Periodicity Assumption
				Monetary Unit Assumption
			Recognition, Measurement, and Disclosure Concepts
				Objective of Financial Reporting
				Recognition
				Measurement
				Disclosure
			Evolving GAAP
	Chapter 2 Review of the Accounting Process
		The Basic Model
			The Accounting Equation
			Account Relationships
		The Accounting Processing Cycle
		Concept Review Exercise: Journal Entries for External Transactions
		Adjusting Entries
			Prepayments
			Accruals
			Estimates
		Concept Review Exercise: Adjusting Entries
		Preparing the Financial Statements
			The Income Statement and the Statement of Comprehensive Income
			The Balance Sheet
			The Statement of Cash Flows
			The Statement of Shareholders’ Equity
		The Closing Process
		Concept Review Exercise: Financial Statement Preparation and Closing
		Conversion from Cash Basis to Accrual Basis
		Appendix 2A: Use of a Worksheet
		Appendix 2B: Reversing Entries
		Appendix 2C: Subsidiary Ledgers and Special Journals
	Chapter 3 The Balance Sheet and Financial Disclosures
		PART A: The Balance Sheet
			Usefulness
			Limitations
			Classification of Elements
				Assets
				Liabilities
				Shareholders’ Equity
			Concept Review Exercise: Balance Sheet Classification
		PART B: Financial Disclosures
			Disclosure Notes
				Summary of Significant Accounting Policies
				Subsequent Events
				Noteworthy Events and Transactions
			Management’s Discussion and Analysis
			Management’s Responsibilities
			Compensation of directors and top executives
			Auditors’ Report
		PART C: Risk Analysis
			Using Financial Statement Information
				Liquidity Ratios
				Solvency Ratios
			Appendix 3: Reporting Segment Information
	Chapter 4 The Income Statement, Comprehensive Income, and the Statement of Cash Flows
		PART A: The Income Statement and Comprehensive Income
			Income from Continuing Operations
				Revenues, Expenses, Gains, and Losses
				Operating Income versus Nonoperating Income
				Income Tax Expense
				Income Statement Formats
			Earnings Quality
				Income Smoothing and Classification Shifting
				Operating Income and Earnings Quality
				Nonoperating Income and Earnings Quality
				Non-GAAP earnings
			Discontinued Operations
				What Constitutes a discontinued Operation?
				Reporting Discontinued Operations
			Accounting Changes
				Change in Accounting Principle
				Change in Depreciation, Amortization, or Depletion Method
				Change in Accounting Estimate
			Correction of Accounting Errors
				Prior Period Adjustments
			Earnings per Share
			Comprehensive Income
				Other Comprehensive Income
				Flexibility in Reporting
				Accumulated Other Comprehensive Income
			Concept Review Exercise: Income Statement Presentation; Comprehensive Income
		PART B: The Statement of Cash Flows
			Usefulness of the Statement of Cash Flows
			Classifying Cash Flows
				Operating Activities
				Investing Activities
				Financing Activities
				Noncash Investing and Financing Activities
			Concept Review Exercise: Statement of Cash Flows
		PART C: Profitability Analysis
			Activity Ratios
			Profitability Ratios
		Profitability Analysis—An Illustration
		Appendix 4: Interim Reporting
	Chapter 5 Revenue Recognition
		PART A: Introduction to Revenue Recognition
			Recognizing Revenue at a Single Point in Time
			Recognizing Revenue over a Period of Time
				Criteria for Recognizing Revenue over Time
				Determining Progress toward Completion
			Recognizing Revenue for Contracts that Contain Multiple Performance Obligations
				Step 2: Identify the Performance Obligation(s)
				Step 3: Determine the Transaction Price
				Step 4: Allocate the Transaction Price to Each Performance Obligation
				Step 5: Recognize Revenue When (Or As) Each Performance Obligation Is Satisfied
			Concept Review Exercise: Revenue Recognition for Contracts with Multiple Performance Obligations
		PART B: Special Topics in Revenue Recognition
			Special Issues for Step 1: Identify the Contract
			Special Issues for Step 2: Identify the Performance Obligation(s)
			Special Issues for Step 3: Determine the Transaction Price
			Special Issues for Step 4: Allocate the Transaction Price to the Performance Obligations
			Special Issues for Step 5: Recognize Revenue When (Or As) Each Performance Obligation Is Satisfied
			Disclosures
		PART C: Accounting for Long-Term Contracts
			Accounting for a Profitable Long-Term Contract
			A Comparison of Revenue Recognized Over the Term of the Contract and at the Completion of Contract
			Long-Term Contract Losses
		Concept Review Exercise: Long-Term Construction Contracts
		Revenue Recognition: GAAP in Effect Prior to ASU No. 2014-09
		Concept Review Exercise: Installment Sales
	Chapter 6 Time Value of Money Concepts
		PART A: Basic Concepts
			Time Value of Money
			Simple versus Compound Interest
			Valuing a Single Cash Flow Amount
				Future Value of a Single Amount
			Present Value of a Single Amount
				Solving for Other Values When FV and PV are Known
			Concept Review Exercise: Valuing A Single Cash Flow Amount
			Preview of Accounting Applications of Present Value Techniques—Single Cash Amount
			Expected Cash Flow Approach
		PART B: Basic Annuities
			Future Value of an Annuity
				Future Value of an Ordinary Annuity
				Future Value of an Annuity Due
			Present Value of an Annuity
				Present Value of an Ordinary Annuity
				Present Value of an Annuity Due
				Present Value of a Deferred Annuity
			Financial Calculators and Excel
			Solving for Unknown Values in Present Value Situations
			Concept Review Exercise: Annuities
			Preview of Accounting Applications of Present Value Techniques—Annuities
				Valuation of Long-Term Bonds
				Valuation of Long-Term Leases
				Valuation of Pension Obligations
			Summary of Time Value of Money Concepts
Section 2 Assets
	Chapter 7 Cash and Receivables
		PART A: Cash and Cash Equivalents
			Internal Control
				Internal Control Procedures—Cash Receipts
				Internal Control Procedures—Cash Disbursements
			Restricted Cash and Compensating Balances
			Decision Makers’ Perspective
		PART B: Current Receivables
			Accounts Receivable
				Initial Valuation of Accounts Receivable
				Subsequent Valuation of Accounts Receivable
			Concept Review Exercise: Uncollectible Accounts Receivable
			Notes Receivable
				Short-Term Interest-Bearing Notes
				Short-Term Noninterest-Bearing Notes
				Long-Term Notes Receivable
				Subsequent Valuation of Notes Receivable
			Financing with Receivables
				Secured Borrowing
				Sale of Receivables
				Transfers of Notes Receivable
				Deciding Whether to Account for a Transfer as a Sale or a Secured Borrowing
				Disclosures
			Concept Review Exercise: Financing With Receivables
			Decision Makers’ Perspective
		Appendix 7A: Cash Controls
		Appendix 7B: Accounting for Impairment of a Receivable and a Troubled Debt Restructuring
	Chapter 8 Inventories: Measurement
		PART A: Recording and Measuring Inventory
			Types of Inventory
				Merchandising Inventory
				Manufacturing Inventories
			Types of Inventory Systems
				Perpetual Inventory System
				Periodic Inventory System
				A Comparison of the Perpetual and Periodic Inventory Systems
			What is Included in Inventory?
				Physical units Included in Inventory
				Transactions Affecting Net Purchases
			Inventory Cost Flow Assumptions
				Specific Identification
				Average Cost
				First-In, First-Out (FIFO)
				Last-In, First-Out (LIFO)
				Comparison of Cost Flow Methods
			Decision Makers’ Perspective—Factors Influencing Method Choice
			Concept Review Exercise: Inventory Cost Flow Methods
			Decision Makers’ Perspective—Inventory Management
		PART B: Methods of Simplifying LIFO
			LIFO Inventory Pools
			Dollar-Value LIFO
				Cost Indexes
				The DVL Inventory Estimation Technique
			Concept Review Exercise: Dollar-Value LIFO
				Advantages of DVL
	Chapter 9 Inventories: Additional Issues
		PART A: Subsequent Measurement of Inventory
			Lower of Cost or Net Realizable Value (LCNRV)
				Applying Lower of Cost or Net Realizable Value
				Adjusting Cost to Net Realizable Value
			Concept Review Exercise: Lower of Cost or Net Realizable Value
			Lower of Cost or Market (LCM)
		PART B: Inventory Estimation Techniques
			The Gross Profit Method
				A Word of Caution
			The Retail Inventory Method
				Retail Terminology
				Cost Flow Methods
				Other Issues Pertaining to the Retail Method
			Concept Review Exercise: Retail Inventory Method
		PART C: Dollar-Value LIFO Retail
			Concept Review Exercise: Dollar-Value LIFO Retail Method
		PART D: Change in Inventory Method and Inventory Errors
			Change in Inventory Method
				Most Inventory Changes
				Change to the LIFO Method
			Inventory Errors
				When the Inventory Error Is Discovered the Following Year
				When the Inventory Error Is Discovered Two Years Later
			Concept Review Exercise: Inventory Errors
			Earnings Quality
		Appendix 9: Purchase Commitments
	Chapter 10 Property, Plant, and Equipment and Intangible Assets: Acquisition
		PART A: Valuation at Acquisition
			Types of Assets
			Costs to be Capitalized
				Property, Plant, and Equipment
				Intangible Assets
			Lump-Sum Purchases
		PART B: Noncash Acquisitions
			Deferred Payments
			Issuance of Equity Securities
			Donated Assets
			Decision Makers’ Perspective
			Exchanges
				Fair Value Not Determinable
				Lack of Commercial Substance
			Concept Review Exercise: Exchanges
		PART C: Self-Constructed Assets and Research and Development
			Self-Constructed Assets
				Overhead Allocation
				Interest Capitalization
			Research and Development (R&D)
				Determining R&D Costs
				Software Development Costs
				R&D Performed for Others
				R&D Purchased in Business Acquisitions
				Start-Up Costs
		Appendix 10: Oil and Gas Accounting
	Chapter 11 Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition
		PART A: Depreciation, Depletion, and Amortization
			Cost Allocation—an Overview
			Measuring Cost Allocation
				Service Life
				Allocation Base
				Allocation Method
			Depreciation
				Time-Based Depreciation Methods
				Activity-Based Depreciation Methods
			Decision Makers’ Perspective—Selecting A Depreciation Method
			Concept Review Exercise: Depreciation Methods
				Dispositions
			Decision Makers’ Perspective—Understanding Gains and Losses
				Group and Composite Depreciation Methods
			Depletion of Natural Resources
			Amortization of Intangible Assets
				Intangible Assets Subject to Amortization
				Intangible Assets Not Subject to Amortization
			Partial Periods
			Concept Review Exercise: Depletion and Amortization
		PART B: Additional Issues
			Change in Estimates
			Change in Depreciation, Amortization, or Depletion Method
			Error Correction
			Impairment of Value
				Assets Held and Used
				Assets Held for Sale
				Impairment Losses and Earnings Quality
			Concept Review Exercise: Impairment
		PART C: Subsequent Expenditures
			Expenditures Subsequent to Acquisition
				Repairs and Maintenance
				Additions
				Improvements
				Rearrangements
				Costs of Defending Intangible Rights
		Appendix 11: Comparison with MACRS (Tax Depreciation)
		Appendix 11: Retirement and Replacement Methods of Depreciation
	Chapter 12 Investments
		PART A: Accounting for Debt Investments
			Example of a Debt Investment
				Recording the Purchase of a Debt Investment
				Recording Interest Revenue
			Three Classifications of Debt Investments
			Debt Investments to Be Held to Maturity (HTM)
				Unrealized Holding Gains and Losses are Not Recognized for Htm Investments
				Sale of HTM Investments
				Financial Statement Presentation
			Debt Investments Classified as Trading Securities
				Adjust Trading Security Investments to Fair Value (2018)
				Sale of Trading Security Investments
				Financial Statement Presentation
			Debt Investments Classified as Available-for-Sale Securities
				Comprehensive Income
				Rationale for Afs Treatment of Unrealized Holding Gains and Losses
				Adjust Afs Investments to Fair Value (2018)
				Sale of afs Investments
				Financial Statement Presentation
				Comparison of htm, ts, and Afs approaches
				Transfers between Reporting Categories
				Fair Value Option
				Impairment of Debt Investments
			Concept Review Exercise: Various Investment Securities
				Financial Statement Presentation and Disclosure
		PART B: Accounting for Equity Investments
			When the Investor Lacks Significant Influence: Fair Value through Net Income
				Purchase Investments
				Recognize Investment Revenue
				Adjust Equity Investments to Fair Value (2018)
				Sell the Equity Investment
				Adjust equity investments to Fair Value (2019)
				Financial Statement Presentation
			When the Investor Has Significant Influence: The Equity Method
				Control and Significant Influence
				Purchase of Investment
				Recording Investment Revenue
				Receiving Dividends
			Further Adjustments
				Adjustments for Additional Depreciation
				No Adjustments for Land or Goodwill
				Adjustments for Other Assets and Liabilities
				Reporting the Investment
				When the Investment is Acquired in Mid-Year
				When the Investee Reports a Net Loss
				What If Conditions Change?
			Fair Value Option
			Concept Review Exercise: The Equity Method
			Decision Makers’ Perspective
		Appendix 12: Other Investments (Special Purpose Funds, Investments In Life Insurance Policies)
		Appendix 12B: Impairment of Debt Investments
Section 3 Liabilities and Shareholders’ Equity
	Chapter 13 Current Liabilities and Contingencies
		PART A: Current Liabilities
			Characteristics of Liabilities
			What Is a Current Liability?
			Open Accounts and Notes
				Accounts Payable and Trade Notes Payable
				Short-Term Notes Payable
				Commercial Paper
			Accrued Liabilities
				Accrued Interest Payable
				Salaries, Commissions, and Bonuses
			Liabilities from Advance Collections
				Deposits and Advances from Customers
				Gift Cards
				Collections for Third Parties
			A Closer Look at the Current and Noncurrent Classification
				Current Maturities of Long-Term Debt
				Obligations Callable by the Creditor
				When Short-Term Obligations Are Expected to Be Refinanced
			Concept Review Exercise: Current Liabilities
		PART B: Contingencies
			Loss Contingencies
				Product Warranties and Guarantees
				Litigation Claims
				Subsequent Events
				Unasserted Claims and Assessments
			Gain Contingencies
			Concept Review Exercise: Contingencies
			Decision Makers’ Perspective
		Appendix 13: Payroll-Related Liabilities
	Chapter 14 Bonds and Long-Term Notes
		The Nature of Long-Term Debt
		PART A: Bonds
			The Bond Indenture
			Recording Bonds at Issuance
				Determining the Selling Price
			Determining Interest—Effective Interest Method
				Zero-Coupon Bonds
				Bonds Sold at a Premium
				When Financial Statements are Prepared between Interest Dates
			The Straight-Line Method—A Practical Expediency
			Concept Review Exercise: Issuing Bonds and Recording Interest
			Debt Issue Costs
		PART B: Long-Term Notes
			Note Issued for Cash
			Note Exchanged for Assets or Services
			Installment Notes
			Financial Statement Disclosures
			Decision Makers’ Perspective
			Concept Review Exercise: Note With an Unrealistic Interest Rate
		PART C: Debt Retired Early, Convertible Into Stock, or Providing an Option to Buy Stock
			Early Extinguishment of Debt
			Convertible Bonds
				When the Conversion Option Is Exercised
				Induced Conversion
			Bonds with Detachable Warrants
			Concept Review Exercise: Issuance and Early Extinguishment of Debt
		PART D: Option to Report Liabilities at Fair Value
			Determining Fair Value
			Reporting Changes in Fair Value
			Mix and Match
		Appendix 14A: Bonds Issued Between Interest Dates
		Appendix 14B: Troubled Debt Restructuring
	Chapter 15 Leases
		PART A: Accounting by the Lessor and Lessee
			Decision Makers’ Perspective—Advantages of Leasing
				Finance Leases and Installment Notes Compared
			Finance/Sales-Type Leases
				Recording Interest Expense/Interest Revenue
				Recording Amortization of the Right-of-Use Asset
			Concept Review Exercise: Finance Lease/Sales-Type Lease: No Selling Profit
			Sales-Type Leases with Selling Profit
			Operating Leases
				Recording Interest Expense/Lease Revenue
				Recording Amortization of the Right-of-Use Asset
				Reporting Lease Expense and Lease Revenue
			Decision Makers’ Perspective—Financial Statement Impact
				Discount Rate
			Concept Review Exercise: Operating Lease
			Short-Term Leases – A Shortcut Method
			Lease Classification
		PART B: Uncertainty in Lease Transactions
			What if the Lease Term is Uncertain?
			Decision Makers’ Perspective—Considering the Economic Incentive for Exercising Options
				What if the Lease Payments are Uncertain?
				What if Lease Terms are Modified?
				Residual Value
				Purchase Option
				Summary of the Lease Uncertainties
				Remeasurement of the Lease Liability
		PART C: Other Lease Accounting Issues and Reporting Requirements
			Concept Review Exercise: Various Lease Accounting Issues: Finance/Sales-Type Lease
			Statement of Cash Flow Impact
				Operating Leases
				Finance Leases–Lessee
				Sales-Type Leases–Lessor
			Lease Disclosures
				Qualitative Disclosures
				Quantitative Disclosures
			Nonlease Components of Lease Payments
			Initial Direct Costs
			Advance Payments
			Leasehold Improvements
		Appendix 15: Sale-Leaseback Arrangements
		Leases: GAAP in Effect Prior to ASU No. 2016-02, A Chapter Supplement
		PART A: Accounting by the Lessor and Lessee
		PART B: Additional Differences
	Chapter 16 Accounting for Income Taxes
		PART A: Deferred Tax Assets and Deferred Tax Liabilities
			Conceptual Underpinning
			Temporary Differences
			Deferred Tax Liabilities
				Balance Sheet and Income Statement Perspectives
				Types of Temporary Differences
			Deferred Tax Assets
			Valuation Allowance
			Disclosures Linking Tax Expense with Changes in Deferred Tax Assets and Liabilities
			Permanent Differences
			Concept Review Exercise: Temporary and Permanent Differences
		PART B: Other Tax Accounting Issues
			Tax Rate Considerations
				When Enacted Tax Rates Differ
				Changes in Tax Laws or Rates
			Multiple Temporary Differences
			Net Operating Losses
				Net Operating Loss Carryforward
				Net Operating Loss Carryback
			Financial Statement Presentation
				Balance Sheet Classification
				Disclosure Notes
			Coping with Uncertainty in Income Taxes
			Intraperiod Tax Allocation
			Decision Makers’ Perspective
			Concept Review Exercise: Multiple Differences and Net Operating Loss
	Chapter 17 Pensions and Other Postretirement Benefits
		PART A: The Nature of Pension Plans
			Defined Contribution Pension Plans
			Defined Benefit Pension Plans
			Pension Expense—An Overview
		PART B: The Pension Obligation and Plan Assets
			The Pension Obligation
				Accumulated Benefit Obligation
				Vested Benefit Obligation
				Projected Benefit Obligation
				Illustration Expanded to Consider the Entire Employee Pool
			Pension Plan Assets
				Reporting the Funded Status of the Pension Plan
		PART C: Determining Pension Expense
			The Relationship between Pension Expense and Changes in the PBO and Plan Assets
				Components of Pension Expense
				Income Smoothing
		PART D: Reporting Issues
			Recording Gains and Losses
			Recording the Pension Expense
				Reporting Pension Expense in the Income Statement
			Recording the Funding of Plan Assets
			Comprehensive Income
			Income Tax Considerations
			Putting the Pieces Together
			Decision Makers’ Perspective
			Settlement or Curtailment of Pension Plans
			Concept Review Exercise: Pension Plans
		PART E: Postretirement Benefits Other Than Pensions
			What Is a Postretirement Benefit Plan?
				Postretirement Health Benefits and Pension Benefits Compared
				Determining the Net Cost of Benefits
			Postretirement Benefit Obligation
				Measuring the Obligation
				Attribution
			Accounting for Postretirement Benefit Plans Other Than Pensions
				A Comprehensive Illustration
			Decision Makers’ Perspective
			Concept Review Exercise: Other Postretirement Benefits
		Appendix 17: Service Method of Allocating Prior Service Cost
	Chapter 18 Shareholders’ Equity
		PART A: The Nature of Shareholders’ Equity
			Financial Reporting Overview
				Paid-in Capital
				Retained Earnings
				Treasury Stock
				Accumulated Other Comprehensive Income
				Reporting Shareholders’ Equity
			The Corporate Organization
				Limited Liability
				Ease of Raising Capital
				Disadvantages
				Types of Corporations
				Hybrid Organizations
				The Model Business Corporation Act
		PART B: Paid-in Capital
			Fundamental Share Rights
			Distinguishing Classes of Shares
				Typical Rights of Preferred Shares
				Is It Equity or Is It Debt?
			The Concept of Par Value
			Accounting for the Issuance of Shares
				Shares Issued For Cash
				Shares Issued for Noncash Consideration
				More Than One Security Issued for a Single Price
				Share Issue Costs
			Concept Review Exercise: Expansion of Corporate Capital
				Share Buybacks
			Decision Makers’ Perspective
				Shares Formally Retired or Viewed as Treasury Stock
				Accounting for Retired Shares
				Accounting for Treasury Stock
				Resale of Shares
			Concept Review Exercise: Treasury Stock
		PART C: Retained Earnings
			Characteristics of Retained Earnings
			Dividends
				Liquidating Dividend
				Retained Earnings Restrictions
				Cash Dividends
				Property Dividends
			Stock Dividends and Splits
				Stock Dividends
				Stock Splits
				Stock Splits Effected in the Form of Stock Dividends (Large Stock Dividends)
			Decision Maker’s Perspective
			Concept Review Exercise: Changes in Retained Earnings
		Appendix 18: Quasi Reorganizations
Section 4 Additional Financial Reporting Issues
	Chapter 19 Share-Based Compensation and Earnings Per Share
		PART A: Share-Based Compensation
			Restricted Stock Plans
				Restricted Stock Awards
				Restricted Stock Units
			Stock Option Plans
				Expense—The Great Debate
				Recognizing the Fair Value of Options
				When Options are Exercised
				When Unexercised Options Expire
				Plans with Graded Vesting
				Plans with Performance or Market Conditions
			Employee Share Purchase Plans
			Decision Makers’ Perspective
			Concept Review Exercise: Share-Based Compensation Plans
		PART B: Earnings Per Share
			Basic Earnings Per Share
				Issuance of New Shares
				Stock Dividends and Stock Splits
				Reacquired Shares
				Earnings Available to Common Shareholders
			Diluted Earnings Per Share
				Potential Common Shares
				Options, Rights, and Warrants
				Convertible Securities
			Antidilutive Securities
				Options, Warrants, Rights
				Convertible Securities
				Order of Entry for Multiple Convertible Securities
			Concept Review Exercise: Basic and Diluted EPS
			Additional EPS Issues
				Components of the “Proceeds” in the Treasury Stock Method
				Restricted Stock awards in EPS Calculations
				Contingently Issuable Shares
				Summary of the Effect of Potential Common Shares on Earnings Per Share
				Actual Conversions
				Financial Statement Presentation of Earnings Per Share Data
			Decision Makers’ Perspective
			Concept Review Exercise: Additional EPS Issues
		Appendix 19A: Option-Pricing Theory
		Appendix 19B: Stock Appreciation Rights
	Chapter 20 Accounting Changes and Error Corrections
		PART A: Accounting Changes
			Change in Accounting Principle
			Decision Makers’ Perspective—Motivation for Accounting Choices
				The Retrospective Approach: Most Changes in Accounting Principle
				The Modified Retrospective Approach
				The Prospective Approach
			Change in Accounting Estimate
				Changing Depreciation, Amortization, and Depletion Methods
			Change in Reporting Entity
			Errors
			Concept Review Exercise: Accounting Changes
		PART B: Correction of Accounting Errors
			Prior Period Adjustments
			Error Correction Illustrated
				Error Discovered in the Same Reporting Period That It Occurred
				Error Affecting Previous Financial Statements, but Not Net Income
				Error Affecting a Prior Year’s Net Income
			Concept Review Exercise: Correction of Errors
	Chapter 21 The Statement of Cash Flows Revisited
		PART A: The Content and Value of the Statement of Cash Flows
			Decision Makers’ Perspective—Usefulness of Cash Flow Information
			Cash Inflows and Outflows
			Structure of the Statement of Cash Flows
				The Importance of Cash Flows in an Economic Decline
				Cash, Cash Equivalents, and Restricted Cash
				Primary Elements of the Statement of Cash Flows
			Preparation of the Statement of Cash Flows
		PART B: Preparing the SCF: Direct Method of Reporting Cash Flows from Operating Activities
			Using a Spreadsheet
				Income Statement Accounts
				Balance Sheet Accounts
			Concept Review Exercise: Comprehensive Review
		PART C: Preparing the SCF: Indirect Method of Reporting Cash Flows from Operating Activities
			Getting There through the Back Door
			Components of Net Income That Do Not Increase or Decrease Cash
			Components of Net Income That Do Increase or Decrease Cash
			Comparison with the Direct Method
			Reconciliation of Net Income to Cash Flows from Operating Activities
			Decision Makers’ Perspective—Cash Flow Ratios
		Appendix 21: Spreadsheet for the Indirect Method
		Appendix 21: The T-Account Method of Preparing the Statement of Cash Flows
Appendix A: Derivatives
Appendix B: GAAP Comprehensive Case
Appendix C: IFRS Comprehensive Case
Glossary
Index
Present and Future Value Tables