Intermediate Accounting: Reporting and Analysis

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About the Authors
Acknowledgments
Instructor Resources
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Brief Contents
Contents
Part 1: Financial Reporting & Financial Statements: Objectives, Concepts, & Analysis
	Chapter 1: The Demand for and Supply of Financial Accounting Information
		Introduction
		Why Does the World Need Financial Accounting Information?
		The Supply of Financial Accounting Information
		The FASB
		FASB Accounting Standards Codification
		The IASB And IFRS
		What Is the Product? Financial Reporting and the Financial Statements
		Why Is Accounting Important? The Economic Consequences of Financial Reporting
		Review Center
		Exercise
		Cases
	Chapter 2: Financial Reporting: Its Conceptual Framework
		What Is the FASB's Conceptual Framework?
		What Are the Objectives of Financial Reporting?
		What Qualities Make Accounting Information Useful?
		What Are the Most Important Assumptions in Accounting?
		What Is the Financial Reporting Model in the Conceptual Framework?
		Review Center
		Multiple-Choice (AICPA Adapted)
		Exercises
		Cases
	Chapter 3: Review of a Company's Accounting System
		What Are the Components of an Accounting System?
		What Is the Accounting Cycle?
		How Do We Record Entries in the General Journal (Step 1)?
		How Do We Post to the General Ledger (Step 2)?
		How Do We Prepare Adjusting Entries (Step 3)?
		How Do We Prepare Financial Statements (Step 4)?
		How Do We Prepare Closing Entries (Step 5)?
		How Do We Use a Worksheet to Prepare Financial Statements?
		What Is the Purpose of Reversing Entries?
		How Do We Use Subsidiary Ledgers and Special Journals?
		Appendix 3.1: What Is Cash-Basis Accounting?
		Review Center
		Review Exercises
		Exercises
		Problems
	Chapter 4: The Balance Sheet and the Statement of Shareholders' Equity
		What Is the Purpose of the Balance Sheet?
		What Elements Are Recognized on the Balance Sheet?
		How Are the Elements of a Balance Sheet Measured?
		How Are Items Classified and Reported on the Balance Sheet?
		What Is the Statement of Shareholders' Equity?
		Additional Balance Sheet Disclosures
		How Do We Analyze Balance Sheet Information?
		How Does Balance Sheet Classification and Presentation Differ under IFRS versus U.S. GAAP?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 5: The Income Statement and the Statement of Cash Flows
		What Are the Purposes of the Income Statement?
		What Is Income?
		What Are the Elements of the Income Statement?
		What Are the Major Components of the Income Statement?
		How Do Income Statements Report Results from Discontinued Operations?
		How Do We Compute and Report Earnings per Share?
		How Do Companies Report Comprehensive Income?
		U.S. GAAP versus IFRS: Similarities and Differences in Reporting Income
		How Do Companies Report the Statement of Cash Flows?
		How Do We Analyze the Information in Income Statements and Cash Flow Statements?
		Appendix 5.1: Segment and Interim Reporting
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Time Value of Money Module
		What Is the Time Value of Money?
		How Do We Compute the Future Value of a Single Sum?
		How Do We Compute the Present Value of a Single Sum?
		What Are Annuities?
		How Do We Compute the Future Value of an Ordinary Annuity?
		How Do We Compute the Future Value of an Annuity Due?
		How Do We Compute the Present Value of an Ordinary Annuity?
		How Do We Compute the Present Value of an Annuity Due?
		How Do We Compute the Present Value of a Deferred Annuity?
		Summary of Present and Future Value Calculations
		How Do We Use Present Value Techniques in Financial Reporting?
		Review Center
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
		Compound Interest Tables
Part 2: Business Operating Activities
	Chapter 6: Cash and Receivables
		What Is Cash?
		Why Do Businesses Need Cash Controls?
		What Are the Different Types of Receivables?
		How Are Accounts Receivable Recorded?
		How Are Uncollectible Accounts Receivable Estimated?
		How Do Companies Account for the Financing of Accounts Receivable?
		How Do Companies Account for Notes Receivable?
		How Are Receivables Disclosed?
		Appendix 6.1: Internal Controls for Cash
		Review Center
		Answers to Real Report Questions
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 7: Inventories: Cost Measurement and Flow Assumptions
		How Do Companies Classify Inventory?
		How Do Companies Keep Track of Inventory?
		How Do Companies Determine Inventory Quantities?
		How Do Companies Determine Inventory Costs?
		What Are the Different Cost Flow Assumptions?
		What Are the Consequences of Using Alternative Inventory Cost Flow Assumptions?
		What Is the Dollar-Value LIFO Method?
		How Do Companies Disclose Inventory Values and Methods?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 8: Inventories: Special Valuation Issues
		What Is an Inventory Write-Down?
		Can Inventory Be Valued above Cost?
		How Is Inventory Estimated Using the Gross Profit Method?
		How Is Inventory Estimated Using the Retail Inventory Method?
		What Is the Dollar-Value Retail Method?
		What Are the Effects of Inventory Errors?
		Appendix 8.1: How Is Lower of Cost or NRV Applied in a Periodic Inventory System?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 9: Current Liabilities and Contingent Obligations
		What Are Liabilities?
		What Is a Current Liability?
		How Do You Account for Current Liabilities Based on a Contractual Amount?
		How Do We Account for Current Liabilities with Amounts Determined by Operating Activities?
		How Do We Account for Contingent Gains and Losses?
		How Are Current Liabilities and Contingencies Presented in the Financial Statements?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
Part 3: Investing Activities
	Chapter 10: Property, Plant, and Equipment: Acquisition and Subsequent Investments
		What Are the Characteristics of Property, Plant, and Equipment?
		How Do We Account for the Acquisition of Property, Plant, and Equipment?
		How Do We Account for Nonmonetary Asset Exchanges?
		What Is the Cost of Self-Constructed Assets?
		How Do We Account for Expenditures Subsequent to Acquisition?
		Appendix 10.1: Oil and Gas Properties
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 11: Depreciation, Depletion, Impairment, and Disposal
		What Are the Factors Involved in Depreciation?
		What Are the Methods of Cost Allocation?
		What Should Be Considered When Selecting Depreciation Methods?
		What Additional Depreciation Methods Exist?
		How Are Depreciable Assets Disclosed?
		What Are Some Additional Issues Related to Depreciation?
		How Do We Account for the Impairment of Property, Plant, and Equipment?
		How Do We Account for the Disposal of Property, Plant, and Equipment?
		How Is Depletion Recorded?
		Appendix 11.1: How Is Depreciation Calculated for Income Tax Purposes?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 12: Intangibles
		How Do We Account for Intangible Assets?
		How Do We Account for Research and Development Costs?
		How Are Intangible Assets Disclosed?
		Identifiable Intangible Assets
		How Do We Account for Unidentifiable Intangibles?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 13: Investments and Long-Term Receivables
		How Are Investments Classified and Reported?
		How Are Investments in Held-to-Maturity Securities Measured and Reported?
		How Are Investments in Trading Securities Measured and Reported?
		How Are Investments in Available-for-Sale Securities Measured and Reported?
		How Do We Account for Transfers and Impairments?
		How Are Investments in Equity Securities Measured and Reported?
		How Do You Account for Minority Active Investments?
		How Are Investments Disclosed in the Financial Statements?
		What Is the Accounting for Other Types of Investments?
		Appendix 13.1: Derivative Financial Instruments
		Review Center
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
Part 4: Financing Activities
	Chapter 14: Financing Liabilities: Bonds and Long-Term Notes Payable
		Why Do Companies Issue Long-Term Financing Liabilities?
		What Are the Terms and Characteristics of Bonds Payable?
		How Is the Issue Price of Bonds Payable Computed?
		How Is the Issuance of Bonds Payable Recorded?
		How to Amortize Discounts and Premiums
		How Do We Account for the Extinguishment of Liabilities?
		How Do We Account for Bonds with Equity Characteristics?
		How Do We Account for Long-Term Notes Payable?
		What Should Be Disclosed for Long-Term Liabilities?
		Appendix 14.1: Troubled Debt Restructurings
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 15: Contributed Capital
		What Information Does Shareholders' Equity Provide?
		How Are Corporations Organized?
		How Is the Capital Structure of a Corporation Defined?
		How Do We Account for the Issuance of Capital Stock?
		How Do Companies Account for Noncompensatory Share Purchase Plans?
		What Are Share-Based Compensation Plans?
		What Characteristics Describe Preferred Stock?
		What Is Treasury Stock and How Is It Accounted For?
		How Is the Contributed Capital Section Structured?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 16: Retained Earnings and Earnings per Share
		What Comprises Retained Earnings?
		How Do We Account for Dividends?
		What Are the Different Types of Dividends?
		How Do We Account for Prior Period Adjustments (Restatements)?
		How Do Companies Report Changes in Shareholders' Equity?
		Earnings per Share
		How Are Basic Earnings per Share (EPS) Computed?
		When Do Companies Report Diluted Earnings per Share?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
Part 5: Special Topics in Financial Reporting
	Chapter 17: Advanced Issues in Revenue Recognition
		When Can Companies Recognize Revenue?
		How Do You Identify a Contract with a Customer?
		How Do You Identify Performance Obligations in a Contract?
		How Do You Determine the Transaction Price?
		How Do You Allocate the Transaction Price to the Performance Obligations in the Contract?
		When Should You Recognize Revenue?
		What Are the Required Disclosures for Revenue Recognition?
		What Are the Methods to Account for Long-Term Contracts?
		Review Center
		Multiple-Choice
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 18: Accounting for Income Taxes
		What Are the Accounting Issues Related to Income Taxes?
		What Are the Basic Issues for Interperiod Income Tax Allocation?
		How Are Current and Deferred Taxes Recorded and Reported under Interperiod Income Tax Allocation?
		How Do We Account for Permanent Differences?
		How Do We Account for Operating Loss Carryforwards?
		How Does Intraperiod Income Tax Allocation Affect the Income Statement?
		How Are Income Tax Items Presented and Disclosed in the Financial Statements?
		What Are Accounting Issues Related to Uncertain Tax Positions?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 19: Accounting for Postretirement Benefits
		What Are the Characteristics of Pension Plans?
		How Do Companies Account for Pension Plans?
		Demonstrating Accounting for Defined Benefit Pension Plans
		What Are the Additional Issues Related to Accounting for Pensions?
		How Do You Account for Other Postretirement Benefits?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 20: Accounting for Leases
		Why Lease?
		What Is a Lease?
		How Do You Classify a Lease?
		How Does a Lessee Account for Its Leases?
		How Does the Lessee Report and Disclose Leases?
		How Does a Lessor Account for and Report a Lease?
		How Does the Lessor Report and Disclose Leases?
		Review Center
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 21: The Statement of Cash Flows
		What Information Does the Statement of Cash Flows Provide, and How Is It Reported?
		How Are Cash Flows for Operating Activities Reported?
		How Is a Statement of Cash Flows Prepared under the Visual Inspection Method?
		How Is the Statement of Cash Flows Prepared Using the Spreadsheet Method?
		How Are Special Items Accounted for in the Statement of Cash Flows?
		Appendix 21.1: Prepare the Operating Activities Section under the Direct Method
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
	Chapter 22: Accounting for Changes and Errors
		What Are the Types of Accounting Changes, and How Are They Reported?
		How Do We Account for a Change in Accounting Principle?
		How Do We Account for a Change in an Accounting Estimate?
		How Do We Account for a Change in a Reporting Entity?
		How Do We Account for a Correction of an Error?
		Review Center
		Answers to Real Report Questions
		Multiple-Choice (AICPA Adapted)
		Review Exercises
		Exercises
		Problems
		Cases
Appendix A: Starbucks Corporation's Annual Report (Excerpts)
Appendix B: List of the Official Pronouncements of the AICPA and FASB
Appendix C: List of the Official Pronouncements of the IASB
Appendix D: Brief Guide to Key Differences between IFRS and U.S. GAAP by Chapter
Index