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Loose-leaf Intermediate Accounting 6th Revised edition [Loose-leaf]

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  • Format: Loose-leaf, height x width x depth: 279x213x43 mm, weight: 2796 g, Illustrations
  • Pub. Date: 24-May-2010
  • Publisher: McGraw Hill Higher Education
  • ISBN-10: 0077403592
  • ISBN-13: 9780077403591
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  • Format: Loose-leaf, height x width x depth: 279x213x43 mm, weight: 2796 g, Illustrations
  • Pub. Date: 24-May-2010
  • Publisher: McGraw Hill Higher Education
  • ISBN-10: 0077403592
  • ISBN-13: 9780077403591
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Rated the most satisfying textbook by students in independent research, Spiceland/Sepe/Nelson’s Intermediate Accounting, 6th Edition, has the quality, flexibility, and attention to detail students need to master a challenging subject. It's your Vehicle to Success in the Intermediate Accounting course and beyond! Spiceland/Sepe/Nelson provides a decision maker’s perspective to emphasize the professional judgment and critical thinking skills required of accountants today. Reviewers, instructors, and student users of Spiceland have enthusiastically embraced the relaxed, conversational writing style that engages students in an enjoyable and effective learning experience. In addition, accounting's preeminent textbook website provides students a wide variety of electronic learning resources, including iPod content. Study Guide, Instructor's Manual, Solutions Manual, Testbank, and Website content are all created by authors, ensuring seamless compatibility throughout the Spiceland learning package. The end-of-chapter material is also written by the author team and tested in their own classes before being included in Intermediate Accounting. Few areas see the kind of rapid change that accounting does, and the Spiceland team is committed to staying current. The sixth edition fully integrates all the latest FASB Standards, and the authors are committed to keeping you updated with all relevant content changes throughout the edition.
Section 1 The Role of Accounting as an Information System
Chapter 1 Environment and Theoretical Structure of Financial Accounting
2(48)
Part A Financial Accounting Environment
4(1)
The Economic Environment and Financial Reporting
5(4)
The Investment-Credit Decision---A Cash Flow Perspective
6(1)
Cash versus Accrual Accounting
7(2)
The Development of Financial Accounting and Reporting Standards
9(10)
Historical Perspective and Standards
9(3)
The Establishment of Accounting Standards---A Political Process
12(1)
Our Global Marketplace
13(3)
The Role of the Auditor
16(1)
Financial Reporting Reform
16(2)
A Move Away from Rules-Based Standards
18(1)
Ethics in Accounting
19(1)
Ethics and Professionalism
19(1)
Analytical Model for Ethical Decisions
19(1)
Part B The Conceptual Framework
20(1)
Objective of Financial Reporting
21(1)
Qualitative Characteristics of Financial Reporting Information
22(3)
Fundamental Qualitative Characteristics
23(1)
Enhancing Qualitative Characteristics
24(1)
Practical Boundaries (Constraints) to Acheiving Desired Qualitative Characteristics
25(1)
Cost Effectiveness
25(1)
Materiality
25(1)
Conservatism
26(1)
Elements of Financial Statements
26(1)
Recognition and Measurement Concepts
27(6)
Recognition
27(1)
Measurement
28(1)
Underlying Assumptions
28(1)
Broad Accounting Principles
29(4)
Evolution of Accounting Principles
33(5)
The Asset/Liability Approach
33(1)
The Move toward Fair Value
34(4)
Questions for Review of Key Topics
38(1)
Briet Exercises
38(1)
Exercises
39(4)
CPA and CMA Review Questions
43(2)
Broaden Your Perspective
45(5)
Chapter 2 Review of the Accounting Process
50(62)
The Basic Model
52(3)
The Accounting Equation
52(1)
Account Relationships
53(2)
The Accounting Processing Cycle
55(9)
Concept Review Exercise: Journal Entries for External Transactions
64(2)
Adjusting Entries
66(8)
Prepayments
67(3)
Accruals
70(2)
Estimates
72(2)
Concept Review Exercise: Adjusting Entries
74(2)
Preparing the Financial Statements
76(3)
The Income Statement
76(1)
The Balance Sheet
77(1)
The Statement of Cash Flows
78(1)
The Statement of Shareholders' Equity
79(1)
The Closing Process
79(2)
Concept Review Exercise: Financial Statement Preparation and Closing
81(2)
Conversion from Cash Basis to Accrual Basis
83(4)
Appendix 2A Use of a Worksheet
87(1)
Appendix 2B Reversing Entries
88(2)
Appendix 2C Subsidiary Ledgers and Special Journals
90(3)
Questions for Review of Key Topics
93(1)
Brief Exercises
93(1)
Exercises
94(7)
CPA Review Questions
101(1)
Problems
102(7)
Broaden Your Perspective
109(3)
Chapter 3 The Balance Sheet and Financial Disclosures
112(56)
Part A The Balance Sheet
115(1)
Usefulness and Limitations
115(1)
Classifications
116(7)
Assets
116(4)
Liabilities
120(1)
Shareholders' Equity
121(2)
Concept Review Exercise: Balance Sheet Classification
123(1)
Part B Financial Disclosures
124(1)
Disclosure Notes
125(3)
Summary of Significant Accounting Policies
125(1)
Subsequent Events
125(1)
Noteworthy Events and Transactions
126(2)
Management Discussion and Analysis
128(1)
Management's Responsibilities
128(1)
Auditors' Report
129(2)
Compensation of Directors and Top Executives
131(1)
Part C Risk Analysis
132(1)
Using Financial Statement Information
132(1)
Liquidity Ratios
133(7)
Fiancing Ratios
135(5)
Appendix 3 Reporting Segment Information
140(3)
Questions for Review of Key Topics
143(1)
Brief Exercises
144(1)
Exercises
145(8)
CPA and CMA Review Questions
153(1)
Problems
154(6)
Broaden Your Perspective
160(8)
Chapter 4 The Income Statement and Statement of Cash Flows
168(64)
Part A The Income Statement and Comprehensive Income
170(1)
Income from Continuing Operations
170(5)
Revenues, Expenses, Gains, and Losses
170(2)
Income Tax Expense
172(1)
Operating versus Nonoperating Income
172(1)
Income Statement Formats
172(3)
Earnings Quality
175(5)
Manipulating Income and Income Smoothing
175(1)
Operating Income and Earnings Quality
176(3)
Nonoperating Income and Earnings Quality
179(1)
Separately Reported Items
180(8)
Intraperiod Income Tax Allocation
180(2)
Discontinued Operations
182(4)
Extraordinary Items
186(1)
Unusual or Infrequent Items
187(1)
Accounting Changes
188(4)
Change in Accounting Principle
188(1)
Change in Depreciation, Amortization, or Depletion Method
189(1)
Change in Accounting Estimate
190(1)
Change in Reporting Entity
191(1)
Correction of Accounting Errors
192(1)
Prior Period Adjustments
192(1)
Earnings per Share Disclosures
192(2)
Comprehensive Income
194(3)
Other Comprehensive Income
194(1)
Flexibility in Reporting
194(2)
Accumulated Other Comprehensive Income
196(1)
Concept Review Exercise: Income Statement Presentation
197(1)
Part B The Statement of Cash Flows
198(1)
Usefulness of the Statement of Cash Flows
198(1)
Classifying Cash Flows
199(6)
Operating Activities
199(4)
Investing Activities
203(1)
Financing Activities
203(1)
Noncash Investing and Financing Activities
204(1)
Concept Review Exercise: Statement of Cash Flows
205(4)
Questions for Review of Key Topics
209(1)
Brief Exercises
209(2)
Exercises
211(7)
CPA and CMA Review Questions
218(1)
Problems
219(6)
Broaden Your Perspective
225(5)
British Airways Case
230(1)
CPA Simulation 4-1
231(1)
Chapter 5 Income Measurement and Profitability Analysis
232(66)
Part A Revenue Recognition
234(4)
Revenue Recognition at Delivery
238(1)
Product Revenue
238(1)
Service Revenue
238(1)
Revenue Recognition after Delivery
239(4)
Installment Sales
239(4)
Concept Review Exercise: Installment Sales
243(2)
Right of Return
243(2)
Consignment Sales
245(1)
Revenue Recognition Prior to Delivery
245(12)
A Comparison of the Completed Contract and Percentage-of-Completion Methods
251(6)
Concept Review Exercise: Long-Term Construction Contracts
257(1)
Industry-Specific Revenue Issues
258(5)
Software and Other Multiple-Deliverable Arrangements
259(1)
Franchise Sales
260(3)
Part B Profitability Analysis
263(4)
Activity Ratios
263(2)
Profitability Ratios
265(2)
Profitability Analysis---An Illustration
267(4)
Appendix 5 Interim Reporting
271(2)
Questions for Review of Key Topics
273(1)
Brief Exercises
273(2)
Exercises
275(7)
CPA and CMA Review Questions
282(2)
Problems
284(7)
Broaden Your Perspective
291(6)
British Airways Case
297(1)
CPA Simulation 5-1
297(1)
Chapter 6 Time Value of Money Concepts
298(38)
Part A Basic Concepts
300(1)
Time Value of Money
300(1)
Simple versus Compound Interest
300(1)
Valuing a Single Cash Flow Amount
301(4)
Future Value of A Single Amount
301(1)
Present Value of a Single Amount
302(2)
Solving for Other Values When FV and PV are Known
304(1)
Concept Review Exercise: Valuing a Single Cash Flow Amount
305(1)
Preview of Accounting Applications of Present Value Techniques---Single Cash Amount
306(2)
Expected Cash Flow Approach
308(1)
Part B Basic Annuities
309(1)
Future Value of an Annuity
310(2)
Future Value of an Ordinary Annuity
310(1)
Future Value of an Annuity Due
311(1)
Present Value of an Annuity
312(4)
Present Value of an Ordinary Annuity
312(1)
Present Value of an Annuity Due
313(1)
Present Value of a Deferred Annuity
314(2)
Financial Calculators and Excel
316(1)
Solving for Unknown Values in Present Value Situations
316(3)
Concept Review Exercise: Annuities
319(1)
Preview of Accounting Applications of Present Value Techniques---Annuities
320(2)
Valuation of Long-Term Bonds
320(1)
Valuation of Long-Term Leases
321(1)
Valuation of Pension Obligations
321(1)
Summary of Time Value of Money Concepts
322(2)
Questions for Review of Key Topics
324(1)
Brief Exercises
325(1)
Exercises
326(3)
CPA and CMA Review Questions
329(2)
Problems
331(3)
Broaden Your Perspective
334(2)
Section 2 Economic Resources
Chapter 7 Cash and Receivables
336(58)
Part A Cash and Cash Equivalents
338(1)
Internal Control
338(2)
Internal Control Procedures---Cash Receipts
339(1)
Internal Control Procedures---Cash Disbursements
339(1)
Restricted Cash and Compensating Balances
340(1)
Decision Makers' Perspective
341(1)
Part B Current Receivables
342(1)
Accounts Receivable
342(9)
Initial Valuation of Accounts Receivable
342(2)
Subsequent Valuation of Accounts Receivable
344(7)
Concept Review Exercise: Uncollectible Accounts Receivable
351(1)
Notes Receivable
352(4)
Interest-Bearing Notes
352(1)
Noninterest-Bearing Notes
353(2)
Subsequent Valuation of Notes Receivable
355(1)
Financing with Receivables
356(9)
Secured Borrowing
356(2)
Sale of Receivables
358(3)
Transfers of Notes Receivable
361(1)
Deciding Whether to Account for a Transfer as a Sale or a Secured Borrowing
361(1)
Disclosures
362(3)
Concept Review Exercises: Financing with Receivables
365(1)
Decision Makers' Perspective
365(4)
Appendix 7A Cash Controls
369(3)
Appendix 7B Impairment of a Receivable Due to a Troubled Debt Restructuring
372(2)
Questions for Review of Key Topics
374(1)
Brief Exercises
375(1)
Exercises
376(6)
CPA and CMA Review Questions
382(2)
Problems
384(6)
Broaden Your Perspective
390(3)
British Airways Case
393(1)
Chapter 8 Inventories: Measurement
394(52)
Part A Recording and Measuring Inventory
396(1)
Types of Inventory
396(1)
Merchandising Inventory
396(1)
Manufacturing Inventories
396(1)
Perpetual Inventory System
397(1)
Periodic Inventory System
398(1)
A Comparison of the Perpetual and Periodic Inventory Systems
399(1)
What is Included in Inventory?
400(4)
Physical Quantities Included in Inventory
400(1)
Expenditures included in Inventory
401(3)
Inventory Cost Flow Assumptions
404(7)
Specific Identification
405(1)
Average Cost
405(2)
First-In First-Out (FIFO)
407(1)
Last-In First-Out (LIFO)
408(2)
Comparison of Cost Flow Methods
410(1)
Decision Makers' Perspective---Factors Influencing Method Choice
411(3)
Concept Review Exercise: Inventory Cost Flow Methods
414(3)
Decision Makers' Perspective
417(3)
Part B Methods of Simplifying LIFO
420(1)
LIFO Inventory Pools
420(1)
Dollar-Value LIFO
421(2)
Advantages of DVL
422(1)
Cost Indexes
422(1)
The DVL Inventory Estimation Technique
422(1)
Concept Review Exercise: Dollar-Value LIFO
423(2)
Questions for Review of Key Topics
425(1)
Brief Exercises
426(1)
Exercises
427(6)
CPA and CMA Review Questions
433(2)
Problems
435(6)
Broaden Your Perspective
441(4)
British Airways Case
445(1)
Chapter 9 Inventories: Additional Issues
446(54)
Part A Reporting---Lower of Cost or Market
448(1)
Determining Market Value
449(5)
Applying Lower of Cost or Market
451(1)
Adjusting Cost to Market
452(2)
Concept Review Exercise: Lower of Cost or Market
454(1)
Part B Inventory Estimation Techniques
455(1)
The Gross Profit Method
456(2)
A Word of Caution
457(1)
The Retail Inventory Method
458(5)
Retail Terminology
459(1)
Cost Flow Methods
460(2)
Other Issues Pertaining to the Retail Method
462(1)
Concept Review Exercise: Retail Inventory Method
463(2)
Part C Dollar-Value LIFO Retail
465(3)
Concept Review Exercise: Dollar-Value LIFO Retail Method
468(1)
Part D Change in Inventory Method and Inventory Errors
469(1)
Change in Inventory Method
469(3)
Most Inventory Changes
469(2)
Change to the LIFO Method
471(1)
Inventory Errors
472(2)
When the Inventory Error is Discovered the Following Year
473(1)
When the Inventory Error is Discovered Subsequent to the Following Year
473(1)
Concept Review Exercise: Inventory Errors
474(1)
Earnings Quality
474(2)
Appendix 9 Purchase Commitments
476(2)
Questions for Review of Key Topics
478(1)
Brief Exercises
479(1)
Exercises
480(7)
CPA and CMA Review Questions
487(2)
Problems
489(5)
Broaden Your Perspective
494(3)
British Airways Case
497(1)
CPA Simulation 9-1
498(1)
CPA Simulation 9-2
498(2)
Chapter 10 Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition
500(56)
Part A Valuation at Acquisition
502(1)
Types of Assets
502(2)
Costs to Be Capitalized
504(8)
Property, Plant, and Equipment
504(5)
Intangible Assets
509(3)
Lump-Sum Purchases
512(1)
Noncash Acquisitions
512(4)
Deferred Payments
513(2)
Issuance of Equity Securities
515(1)
Donated Assets
515(1)
Decision Makers' Perspective
516(1)
Part B Dispositions and Exchanges
517(1)
Dispositions
517(1)
Exchanges
518(3)
Fair Value Not Determinable
519(1)
Exchange Lacks Commercial Substance
519(2)
Concept Review Exercise: Exchanges
521(1)
Part C Self-Constructed Assets and Research and Development
521(1)
Self-Constructed Assets
521(13)
Overhead Allocation
522(1)
Interest Capitalization
522(4)
Research and Development (R & D)
526(8)
Appendix 10 Oil and Gas Accounting
534(1)
Questions for Review of Key Topics
535(1)
Brief Exercises
536(1)
Exercises
537(6)
CPA and CMA Review Questions
543(3)
Problems
546(4)
Broaden Your Perspective
550(4)
British Airways Case
554(2)
Chapter 11 Property, Plant, and Equipment and Intangible Assets: Utilization and Impairment
556(62)
Part A Depreciation Depletion, and Amortization
558(1)
Cost Allocation---An Overview
558(1)
Measuring Cost Allocation
559(1)
Service Life
559(1)
Allocation Base
559(1)
Allocation Method
560(1)
Depreciation
560(3)
Time-Based Depreciation Methods
560(2)
Activity-Based Depreciation Methods
562(1)
Decision Makers' Perspective---Selecting a Depreciation Method
563(2)
Concept Review Exercise: Depreciation Methods
565(1)
Group and Composite Depreciation Methods
566(3)
Depletion of Natural Resources
569(2)
Amortization of Intangible Assets
571(2)
Intangible Assets Subject to Amortization
571(1)
Intangible Assets not Subject to Amortization
572(1)
Concept Review Exercise: Depletion and Amortization
573(2)
Part B Additional Issues
575(1)
Partial Periods
575(1)
Changes in Estimates
576(1)
Change in Depreciation, Amortization, or Depletion Method
577(1)
Error Correction
578(2)
Impairment of Value
580(7)
Assets to Be Held and Used
580(7)
Assets to Be Sold
587(2)
Impairment Losses and Earnings Quality
588(1)
Part C Subsequent Expenditures
589(5)
Expenditures Subsequent to Acquisition
589(1)
Repairs and Maintenance
589(1)
Additions
590(1)
Improvements
590(1)
Rearrangements
590(1)
Costs of Defending Intangible Rights
591(3)
Appendix 11A Comparison with MACRS (Tax Depreciation)
594(1)
Appendix 11B Retirement and Replacement Methods of Depreciation
594(2)
Questions for Review of Key Topics
596(1)
Brief Exercises
596(2)
Exercises
598(7)
CPA and CMA Review Questions
605(2)
Problems
607(5)
Broaden Your Perspective
612(4)
British Airways Case
616(1)
CPA Simulation 11-1
617(1)
Section 3 Financial Intruments and Libilities
Chapter 12 Investments
618(72)
Part A Investor Lacks Significant Influence
620(2)
Securities to Be Held to Maturity
622(3)
Trading Securities
625(4)
Securities Available-for-Sale
629(8)
Comparison of HTM, TS, and AFS Approaches
635(2)
Transfers between Reporting Categories
637(2)
Fair Value Option
637(2)
Impairment of Investments
639(1)
Concept Review Exercise: Various Investment Securities
640(2)
Financial Statement Presentation and Disclosure
642(2)
Part B Investor Has Significant Influence
644(1)
How the Equity Method Relates to Consolidated Financial Statements
644(1)
What Is Significant Influence?
645(1)
A Single Entity Concept
645(2)
Further Adjustments
647(2)
Reporting the Investment
649(2)
What If Conditions Change?
651(3)
If an Equity Method Investment Is Sold
652(1)
Comparison of Fair Value and Equity Methods
652(1)
Fair Value Option
653(1)
Concept Review Exercise: The Equity Method
654(2)
Decision Makers' Perspective
656(1)
Financial Instruments and Investment Derivatives
657(2)
Appendix 12A Other Invesments (Special Purpose Funds Investments in Life Insurance Policies)
659(1)
Appendix 12B Impairment of Investments
660(6)
Questions for Review of Key Topics
666(2)
Brief Exercises
668(1)
Exercises
669(7)
CPA and CMA Review Questions
676(2)
Problems
678(7)
Broaden Your Perspective
685(3)
British Airways Case
688(1)
CPA Simulation 12-1
689(1)
Chapter 13 Current Liabilities and Contingencies
690(56)
Part A Current Liabilities
692(1)
Characteristics of Liabilities
692(1)
What Is a Current Liability?
693(1)
Open Accounts and Notes
693(4)
Accounts Payable and Trade Notes Payable
694(1)
Short-Term Notes Payable
694(3)
Commercial Paper
697(1)
Accrued Liabilities
697(3)
Accrued Interst Payable
698(1)
Salaries, Commissions, and Bonuses
698(2)
Liabilities from Advance Collections
700(2)
Deposits and Advances from Customers
700(1)
Gift Cards
701(1)
Collections for Third Parties
702(1)
A Closer Look at the Current and Noncurrent Classification
702(2)
Current Maturities of Long-Term Debt
702(1)
Obligations Callable by the Creditor
702(1)
When Short-Term Obligations Are Expected to Be Refinanced
703(1)
Concept Review Exercise: Current Liabilities
704(1)
Part B Contingencies
705(1)
Loss Contingencies
706(10)
Product Warranties and Guarantees
708(2)
Premiums
710(1)
Litigation Claims
711(2)
Subsequent Events
713(2)
Unasserted Claims and Assessments
715(1)
Gain Contingencies
716(1)
Concept Review Exercise: Contingencies
717(2)
Decision Makers' Perspective
719(2)
Appendix 13 Payroll-Related Liabilities
721(2)
Questions for Review of Key Topics
723(1)
Brief Exercises
724(1)
Exercises
725(6)
CPA and CMA Review Questions
731(2)
Problems
733(5)
Broaden Your Perspective
738(6)
British Airways Case
744(2)
Chapter 14 Bonds and Long-Term Notes
746(60)
The Nature of Long-Term Debt
747(1)
Part A Bonds
748(1)
The Bond Indenture
748(1)
Recording Bonds at Issuance
749(3)
Determining the Selling Price
750(2)
Determining Interest---Effective Interest Method
752(4)
Zero-Coupon Bonds
753(1)
Bonds Sold at a Premium
754(2)
When Financial Statements Are Prepared between Interest Dates
756(1)
The Straight-Line Method---A Practical Expediency
756(1)
Concept Review Exercise: Issuing Bonds and Recording Interest
757(1)
Debt Issuance Costs
758(1)
Part B Long-Term Notes
759(1)
Note Issued for Cash
760(1)
Note Exchanged for Assets or Services
760(2)
Installment Notes
762(1)
Financial Statement Disclosures
763(2)
Decision Makers' Perspective
765(2)
Concept Review Exercise: Note with an Unrealistic Interest Rate
767(2)
Part C Debt Retired Early, Convertible into Stock, or Providing an Option to Buy Stock
769(1)
Early Extinguishment of Debt
769(1)
Convertible Bonds
769(3)
When the Conversion Option Is Exercised
771(1)
Induced Conversion
772(1)
Bonds with Detachable Warrants
772(2)
Concept Review Exercise: Issuance and Early Extinguishment of Debt
774(1)
Part D Option to Report Liabilities at Fair Value
775(4)
Determining Fair Value
775(1)
Reporting Changes in Fair Value
775(2)
Mix and Match
777(2)
Appendix 14A Bonds Issued between Interest Dates
779(1)
Appendix 14B Troubled Debt Restructuring
780(4)
Questions for Review of Key Topics
784(1)
Brief Exercises
785(1)
Exercises
786(6)
CPA and CMA Review Questions
792(2)
Problems
794(6)
Broaden Your Perspective
800(4)
British Airways Case
804(1)
CPA Simulation 14-1
805(1)
Chapter 15 Leases
806(66)
Part A Accounting by the Lessor and Lessee
808(1)
Decision Makers' Perspective---Advantages of Leasing
808(1)
Capital Leases and Installment Notes Compared
809(1)
Lease Classification
810(5)
Classification Criteria
811(2)
Additional Lessor Conditions
813(2)
Operating Leases
815(2)
Advance Payments
815(1)
Leasehold Improvements
816(1)
Capital Lease---Lessee and Lessor
817(4)
Depreciation
819(1)
Accrued Interest
820(1)
Concept Review Exercise: Direct Financing Lease
821(1)
Sales-Type Leases
822(2)
Part B Bargain Purchase Options and Residual Value
824(1)
Bargain Purchase Options
824(3)
When a BPO is Exercisable Before the End of the Lease Term
827(1)
Residual Value
827(5)
Effect on the Lessee of a Residual Value
828(1)
Effect on the Lessor of a Residual Value
828(4)
Part C Other Lease Accounting Issues
832(1)
Executory Costs
832(1)
Discount Rate
832(3)
When the Lessee's Incremental Borrowing Rate is Less Than the Lessor's Implicit Rate
833(1)
When the Lessor's Implicit Rate is Unknown
833(1)
Lessor's Initial Direct Costs
834(1)
Contingent Rentals
835(1)
A Brief Summary
835(1)
Lease Disclosures
835(3)
Decision Maker's Perspective---Financial Statement Impact
838(2)
Balance Sheet and Income Statement
838(1)
Statement of Cash Flow Impact
839(1)
Concept Review Exercise: Various Lease Accounting Issues
840(2)
Part D Special Leasing Arrangements
842(1)
Sale-Leaseback Arrangements
842(4)
Capital Leases
843(1)
Operating Leases
844(1)
Losses on Sale-Leasebacks
845(1)
Real Estate Leases
846(1)
Leases of Land Only
846(1)
Leases of Land and Building
846(1)
Leases of Only Part of a Building
846(1)
Leveraged Leases
846(2)
Questions for Review of Key Topics
848(1)
Brief Exercises
849(1)
Exercises
850(7)
CPA and CMA Review Questions
857(2)
Problems
859(7)
Broaden Your Perspective
866(3)
British Airways Case
869(1)
CPA Simulation 15-1
870(2)
Chapter 16 Accounting for Income Taxes
872(62)
Part A Deferred Tax Assets and Deferred Tax Liabilities
874(1)
Conceptual Underpinning
874(1)
Temporary Differences
875(1)
Deferred Tax Liabilities
875(7)
The FASB's Balance Sheet Approach
877(1)
Types of Temporary Differences
878(4)
Deferred Tax Assets
882(3)
Valuation Allowance
885(1)
Permanent Differences
886(3)
Concept Review Exercise: Temporary and Permanent Differences
889(1)
Part B Other Tax Accounting Issues
890(1)
Tax Rate Considerations
890(2)
When Enacted Tax Rates Differ
890(1)
Changes in Tax Laws or Rates
891(1)
Multiple Temporary Differences
892(2)
Net Operating Losses
894(3)
Operating Loss Carryforward
895(1)
Operating Loss Carryback
896(1)
Financial Statement Presentation
897(3)
Balance Sheet Classification
897(1)
Disclosure Notes
898(2)
Coping with Uncertainty in Income Taxes
900(2)
Intraperiod Tax Allocation
902(2)
Decision Makers' Perspective
904(1)
Concept Review Exercise: Multiple Differences and Operating Loss
905(3)
Questions for Review of Key Topics
908(1)
Brief Exercises
909(2)
Exercises
911(7)
CPA and CMA Review Questions
918(2)
Problems
920(6)
Broaden Your Perspective
926(5)
British Airways Case
931(1)
CPA Simulation 16-1
932(2)
Chapter 17 Pensions and Other Postretirement Benefits
934(72)
Part A The Nature of Pension Plans
936(2)
Defined Contribution Pension Plans
938(1)
Defined Benefit Pension Plans
939(1)
Pension Expense---An Overview
940(1)
Part B The Pension Obligation and Plan Assets
941(1)
The Pension Obligation
941(6)
Accumulated Benefit Obligation
941(1)
Vested Benefit Obligation
941(1)
Projected Benefit Obligation
942(5)
Illustration Expanded to Consider the Entire Employee Pool
947(1)
Pension Plan Assets
947(2)
Reporting the Funded Status of the Pension Plan
949(1)
Part C Determining Pension Expense
949(1)
The Relationship between Pension Expense and Changes in the PBO and Plan Assets
949(6)
Components of Pension Expense
951(2)
Income Smoothing
953(2)
Part D Reporting Issues
955(1)
Recording Gains and Losses
955(1)
Recording the Pension Expense
956(2)
Recording the Funding of Plan Assets
958(2)
Comprehensive Income
960(1)
Income Tax Considerations
961(1)
Putting the Pieces Together
962(1)
Decision Makers' Perspective
963(1)
Settlement or Curtailment of Pension Plans
963(1)
Concept Review Exercise: Pension Plans
964(2)
Part E Postretirement Benefits Other Than Pensions
966(1)
What is a Postretirement Benefit Plan?
967(2)
Postretirement Health Benefits and Pension Benefits Compared
967(1)
Determining the Net Cost of Benefits
968(1)
Postretirement Benefit Obligation
969(1)
Measuring the Obligation
969(1)
Attribution
969(1)
Accounting for Postretirement Benefit Plans Other Than Pensions
970(3)
A Comprehensive Illustration
972(1)
Decision Makers' Perspective
973(1)
Concept Review Exercise: Other Postretirement Benefits
974(3)
Appendix 17 Service Method of Allocating Prior Service Cost
977(1)
Questions for Review of Key Topics
978(1)
Brief Exercises
979(1)
Exercises
980(9)
CPA and CMA Review Questions
989(1)
Problems
990(8)
Broaden Your Perspective
998(5)
British Airways Case
1003(1)
CPA Simulation 17-1
1004(2)
Chapter 18 Shareholders' Equity
1006(62)
Part A The Nature of Shareholders' Equity
1008(1)
Financial Reporting Overview
1008(7)
Paid-in Capital
1009(1)
Retained Earnings
1010(1)
Treasury Stock
1010(1)
Accumulated Other Comprehensive Income
1010(2)
Reporting Shareholders' Equity
1012(3)
The Corporate Organization
1015(2)
Limited Liability
1015(1)
Ease of Raising Capital
1015(1)
Disadvantages
1015(1)
Types of Corporations
1016(1)
Hybrid Organizations
1016(1)
The Model Business Corporation Act
1016(1)
Part B Paid-In Capital
1017(1)
Fundamental Share Rights
1017(1)
Distinguishing Classes of Shares
1017(3)
Typical Rights of Preferred Shares
1018(1)
Is It Equity or Is It Debt?
1019(1)
The Concept of Par Value
1020(1)
Accounting for the Issuance of Shares
1020(3)
Shares Issued For Cash
1020(1)
Shares Issued for Noncash Consideration
1021(1)
More Than One Security Issued for a Single Price
1021(1)
Share Issue Costs
1022(1)
Concept Review Exercise: Expansion of Corporate Capital
1023(1)
Share Buybacks
1024(1)
Decision Makers' Perspective
1024(4)
Shares Formally Retired or Viewed as Treasury Stock
1025(1)
Accounting for Retired Shares
1026(1)
Accounting for Treasury Stock
1027(1)
Resale of Shares
1028(1)
Concept Review Exercise: Treasury Stock
1028(3)
Part C Retained Earnings
1031(1)
Characteristics of Retained Earnings
1031(1)
Dividends
1031(2)
Liquidating Dividend
1031(1)
Retained Earnings Restrictions
1032(1)
Cash Dividends
1032(1)
Property Dividends
1033(1)
Stock Dividends and Splits
1033(4)
Stock Dividends
1033(2)
Stock Splits
1035(1)
Stock Splits Effected in the Form of Stock Dividends (Large Stock Dividends)
1035(2)
Decision Makers' Perspective
1037(1)
Concept Review Exercise: Changes in Retained Earnings
1038(4)
Appendix 18 Quasi Reorganizations
1042(2)
Questions for Review of Key Topics
1044(1)
Brief Exercises
1044(2)
Exercises
1046(7)
CPA and CMA Review Questions
1053(1)
Problems
1054(6)
Broaden Your Perspective
1060(6)
British Airways Case
1066(1)
CPA Simulation 18-1
1066(2)
Section 4 Additional Financial Reporting Issues
Chapter 19 Share-Based Compensation and Earnings Per Share
1068(68)
Part A Share-Based Compensation
1070(1)
Stock Award Plans
1070(1)
Stock Option Plans
1071(9)
Expense---The Great Debate
1072(1)
Recognizing the Fair Value of Options
1073(2)
When Options are Exercised
1075(1)
When Unexercised Options Expire
1075(2)
Plans with Graded Vesting
1077(2)
Plans with Performance or Market Conditions
1079(1)
Employee Share Purchase Plans
1080(1)
Decision Markers' Perspective
1080(1)
Concept Review Exercise: Share-Based Compensation Plans
1081(1)
Part B Earnings Per Share
1082(1)
Basic Earnings Per Share
1083(4)
Issuance of New Share
1083(1)
Stock Dividends and Stock Splits
1084(1)
Reacquired Shares
1085(1)
Earnings Available to Common Shareholders
1086(1)
Diluted Earnings Per Share
1087(5)
Potential Common Shares
1087(1)
Options, Rights, and Warrants
1087(1)
Converible Securities
1088(4)
Antidilutive Securities
1092(3)
Options Warrants, Rights
1092(1)
Convertible Securities
1093(1)
Order of Entry for Multiple Convertible Securities
1093(2)
Concept Review Exercise: Basic and Diluted EPS
1095(1)
Additional EPS Issues
1096(6)
Components of the "Proceeds" in the Treasury Stock Method
1096(1)
Contingently Issuable Shares
1097(1)
Summary of the Effect of Potential Common Shares on Earnigs per Share
1098(1)
Actual Conversions
1099(1)
Financial Statement Presentation of Earnings Per Share Data
1100(2)
Decision Makers' Perspective
1102(2)
Concept Review Exercise: Additional EPS Issues
1104(3)
Appendix 19A Option-Pricing Theory
1107(1)
Appendix 19B Stock Appreciation Rights
1108(3)
Questions for Review of Key Topics
1111(1)
Brief Exercises
1112(1)
Exercises
1113(6)
CPA and CMA Review Questions
1119(2)
Problems
1121(6)
Broaden Your Perspective
1127(7)
British Airways Case
1134(1)
CPA Simulation 19-1
1134(2)
Chapter 20 Accounting Changes and Error Corrections
1136(46)
Part A Accounting Changes
1138(1)
Change in Accounting Principle
1139(1)
Decision Makers' Perspective---Motivation for Accounting Choices
1139(7)
The Retrospective Approach: Most Changes in Accounting Principle
1141(3)
The Prospective Approach
1144(2)
Change in Accounting Estimate
1146(2)
Changing Depreciation, Amortization, and Depletion Methods
1147(1)
Change in Reporting Entity
1148(1)
Error Correction
1149(1)
Concept Review Exercise: Accounting Changes
1150(2)
Part B Correction of Accounting Errors
1152(1)
Prior Period Adjustments
1152(1)
Error Correction Illustrated
1153(6)
Error Discovered in the Same Reporting Period That It Occurred
1153(1)
Error Affecting Previous Financial Statements, but Not Net Income
1154(1)
Error Affecting a Prior Year's Net Income
1154(5)
Concept Review Exercise: Correction of Errors
1159(2)
Questions for Review of Key Topics
1161(1)
Brief Exercises
1161(1)
Exercises
1162(6)
CPA and CMA Review Questions
1168(2)
Problems
1170(7)
Broaden Your Perspective
1177(5)
Chapter 21 The Statement of Cash Flows Revisited
1182
Part A The Content and Value of the Statement of Cash Flows
1184(1)
Decision Makers' Perspective---Usefulness of Cash Flow Information
1184(1)
Cash Inflows and Outflows
1184(1)
Role of the Statement of Cash Flows
1185(9)
The Importance of Cash Flows in an Economic Decline
1187(1)
Cash and Cash Equivalents
1187(1)
Primary Elements of the Statement of Cash Flows
1188(6)
Preparation of the Statement of Cash Flows
1194(3)
Part B Preparing an SCF: The Direct Method of Reporting Cash Flows from Operating Activities
1197(1)
Using a Spreadsheet
1197(17)
Income Statement Accounts
1199(8)
Balance Sheet Accounts
1207(7)
Concept Review Exercise: Comprehensive Review
1214(4)
Part C Preparing an SCF: The Indirect Method of Reporting Cash Flows from Operating Activities
1218(1)
Getting There through the Back Door
1218(1)
Components of Net Income That Do Not Increase or Decrease Cash
1219(1)
Components of Net Income That Do Increase or Decrease Cash
1219(1)
Comparison with the Direct Method
1220(1)
Reconciliation of Net Income to Cash Flows from Operating Activities
1221(2)
Decision Makers' Perspective---Cash Flow Ratios
1223(2)
Appendix 21A Spreadsheet for the Indirect Method
1225(4)
Appendix 21B The T-Account Method of Preparing the Statement of Cash Flows
1229(2)
Questions for Review of Key Topics
1231(1)
Brief Exercises
1232(1)
Exercises
1233(9)
CPA and CMA Review Questions
1242(2)
Problems
1244(12)
Broaden Your Perspective
1256(7)
British Airways Case
1263(1)
CPA Simulation 21-1
1263
Appendix A Derivatives 0(1)
Appendix B Dell Annual Report 1
Appendix C IFRS Comprehensive Case
Glossary 0(1)
Photo Credits 1
Index 0(1)
Present and Future Value Tables 1
J. David Spiceland received his MBA at Southern Illinois University and his Ph.D. at University of Arkansas. Dr. Spiceland has been recognized for his teaching, and is active in the AAA. Jim Sepe received his MBA at the University of California-Berkeley and his Ph.D. at the University of Washington. He has received numerous teaching awards at Santa Clara University. Jim Sepe received his MBA at the University of California-Berkeley and his Ph.D. at the University of Washington. He has received numerous teaching awards at Santa Clara University.