بوسه، تعظیم یا دست دادن: پرفروش‌ترین راهنمای انجام کسب و کار در بیش از 60 کشور (بوسه، تعظیم یا دست دادن: پرفروش‌ترین راهنمای انجام کسب و کار در بیش از 60 کشور)

Cover......Page 1 Title Page......Page 5 Dedication......Page 6 Brief Contents......Page 7 From the Authors......Page 8 About the Authors......Page 9 Acknowledgments......Page 16 Table of Contents......Page 18 1 Financial Accounting and Accounting Standards......Page 29 Exciting Times......Page 30 Financial Reporting Environment......Page 31 Objective of Financial Reporting......Page 32 What Do the Numbers Mean? Don’t Forget Stewardship......Page 33 The Need to Develop Standards......Page 34 Securities and Exchange Commission (SEC)......Page 35 American Institute of Certified Public Accountants (AICPA)......Page 36 Financial Accounting Standards Board (FASB)......Page 37 What Do the Numbers Mean? You Have to Step Back......Page 40 FASB Codification......Page 41 GAAP in a Political Environment......Page 42 Evolving Issue Fair Value, Fair Consequences?......Page 43 The Expectations Gap......Page 44 Financial Reporting Issues......Page 45 International Accounting Standards......Page 46 Conclusion......Page 47 IFRS Insights......Page 56 What Is It?......Page 63 Need for a Conceptual Framework......Page 65 Development of a Conceptual Framework......Page 66 Overview of the Conceptual Framework......Page 67 Qualitative Characteristics of Accounting Information......Page 68 What Do the Numbers Mean? Living in a Material World......Page 71 What Do the Numbers Mean? Show Me the Earnings!......Page 72 Basic Elements......Page 75 Economic Entity Assumption......Page 76 Monetary Unit Assumption......Page 77 Basic Principles of Accounting......Page 78 Cost Constraint......Page 83 Summary of the Structure......Page 84 What Do the Numbers Mean? Don’t Count These Please......Page 85 FASB Codification and Exercises......Page 99 IFRS Insights......Page 100 3 The Accounting Information System......Page 105 Needed: A Reliable Information System......Page 106 Accounting Information System......Page 107 Basic Terminology......Page 108 The Accounting Equation......Page 109 Financial Statements and Ownership Structure......Page 111 The Accounting Cycle......Page 112 Record and Summarize Basic Transactions......Page 113 Posting......Page 114 Chart of Accounts......Page 116 The Recording Process Illustrated......Page 117 Trial Balance......Page 122 Adjusting Entries......Page 123 Adjusting Entries for Deferrals......Page 124 What Do the Numbers Mean? Am I Covered?......Page 126 Adjusting Entries for Accruals......Page 128 Preparing Financial Statements......Page 134 Closing......Page 135 Reversing Entries—An Optional Step......Page 138 Income Statement......Page 139 Balance Sheet......Page 140 What Do the Numbers Mean? Statements, Please......Page 141 Appendix 3A: Cash-Basis Accounting versus Accrual-Basis Accounting......Page 142 Conversion from Cash Basis to Accrual Basis......Page 144 Operating Expense Computation......Page 145 Illustration of Reversing Entries—Accruals......Page 147 Illustration of Reversing Entries—Deferrals......Page 148 Summary of Reversing Entries......Page 149 Adjustments Columns......Page 150 Adjusted Trial Balance......Page 152 Preparing Financial Statements from a Worksheet......Page 153 IFRS Insights......Page 177 4 Income Statement and Related Information......Page 183 Financial Statements Are Changing......Page 184 Usefulness of the Income Statement......Page 185 Quality of Earnings......Page 186 What Do the Numbers Mean? Some Things Never Change......Page 187 Elements of the Income Statement......Page 188 Intermediate Components of the Income Statement......Page 189 Condensed Income Statements......Page 191 Single-Step Income Statements......Page 192 Reporting Various Income Items......Page 193 Discontinued Operations......Page 194 Noncontrolling Interest in Income......Page 197 Earnings per Share......Page 198 What Do the Numbers Mean? Four: The Loneliest Number......Page 199 Accounting Changes and Errors......Page 200 Changes in Accounting Estimates......Page 201 Summary......Page 202 Retained Earnings Statement......Page 203 Comprehensive Income......Page 204 Statement of Stockholders’ Equity......Page 205 Evolving Issue Income Reporting......Page 206 FASB Codification and Exercises......Page 224 IFRS Insights......Page 225 Hey, It Doesn’t Balance!......Page 231 Usefulness of the Balance Sheet......Page 233 What Do the Numbers Mean? Grounded......Page 234 Classification in the Balance Sheet......Page 235 What Do the Numbers Mean? “Show Me the Assets!”......Page 241 What Do the Numbers Mean? Warning Signals......Page 244 Report Form......Page 245 Statement of Cash Flows......Page 246 Purpose of the Statement of Cash Flows......Page 247 Content of the Statement of Cash Flows......Page 248 Preparation of the Statement of Cash Flows......Page 249 Usefulness of the Statement of Cash Flows......Page 251 Additional Information......Page 254 Notes to the Financial Statements......Page 255 What Do the Numbers Mean? What About Your Commitments?......Page 256 Techniques of Disclosure......Page 258 Using Ratios to Analyze Performance......Page 260 Analytics in Action......Page 287 IFRS Insights......Page 288 How Do I Measure That?......Page 295 Applications of Time Value Concepts......Page 297 Simple Interest......Page 298 Compound Interest......Page 299 What Do the Numbers Mean? A Pretty Good Start......Page 300 Single-Sum Problems......Page 302 Future Value of a Single Sum......Page 303 Present Value of a Single Sum......Page 304 Solving for Other Unknowns in Single-Sum Problems......Page 306 Annuities (Future Value)......Page 307 Future Value of an Ordinary Annuity......Page 308 Future Value of an Annuity Due......Page 310 What Do the Numbers Mean? Don’t Wait to Make That Contribution!......Page 311 Examples of Future Value of Annuity Problems......Page 312 Present Value of an Ordinary Annuity......Page 314 Present Value of an Annuity Due......Page 315 Examples of Present Value of Annuity Problems......Page 317 Deferred Annuities......Page 318 Valuation of Long-Term Bonds......Page 320 Effective-Interest Method of Amortization of Bond Discount or Premium......Page 321 Present Value Measurement......Page 322 What Do the Numbers Mean? How Low Can They Go?......Page 324 FASB Codification and Exercises......Page 339 Is Your Cash Trapped?......Page 351 Cash......Page 353 Reporting Cash......Page 354 Summary of Cash-Related Items......Page 355 Evolving Issue What Counts for Cash?......Page 356 Receivables......Page 357 Measurement of the Transaction Price......Page 358 Variable Consideration......Page 359 Valuation of Accounts Receivable......Page 361 Allowance Method for Uncollectible Accounts......Page 362 What Do the Numbers Mean? Please Release Me?......Page 366 Recognition of Notes Receivable......Page 367 Other Issues......Page 371 Disposition of Accounts and Notes Receivable......Page 372 Presentation and Analysis......Page 377 Appendix 7A: Cash Controls......Page 380 The Imprest Petty Cash System......Page 381 Physical Protection of Cash Balances......Page 382 Reconciliation of Bank Balances......Page 383 Appendix 7B: Collectibility Assessment Based on Expected Cash Flows......Page 385 Example......Page 386 Recording Bad Debts......Page 387 FASB Codification and Exercises......Page 412 IFRS Insights......Page 413 8 Valuation of Inventories: A Cost-Basis Approach......Page 417 To Switch or Not to Switch......Page 418 Classification......Page 419 Inventory Cost Flow......Page 420 Inventory Control......Page 422 Goods Included in Inventory......Page 423 Costs Included in Inventory......Page 426 Which Cost Flow Assumption to Adopt?......Page 428 Average-Cost......Page 429 First-In, First-Out (FIFO)......Page 430 Last-In, First-Out (LIFO)......Page 431 LIFO Reserve......Page 432 What Do the Numbers Mean? Comparing Apples to Apples......Page 433 LIFO Liquidation......Page 434 Dollar-Value LIFO......Page 435 What Do the Numbers Mean? Quite a Difference......Page 439 Major Advantages of LIFO......Page 440 Major Disadvantages of LIFO......Page 441 Basis for Selection of Inventory Method......Page 442 Evolving Issue Repeal LIFO!......Page 444 Ending Inventory Misstated......Page 445 Purchases and Inventory Misstated......Page 446 FASB Codification and Exercises......Page 472 9 Inventories: Additional Valuation Issues......Page 475 Not What It Seems to Be......Page 476 Definition of Net Realizable Value......Page 477 Methods of Applying LCNRV......Page 478 Recording NRV Instead of Cost......Page 479 Use of an Allowance—Multiple Periods......Page 480 Lower-of-Cost-or-Market......Page 481 How Lower-of-Cost-or-Market Works......Page 483 Evaluation of the LCNRV and Lower-of-Cost-or-Market Rules......Page 484 Valuation at Net Realizable Value......Page 485 Valuation Using Relative Sales Value......Page 486 Purchase Commitments—A Special Problem......Page 487 The Gross Profit Method of Estimating Inventory......Page 489 Computation of Gross Profit Percentage......Page 490 Evaluation of Gross Profit Method......Page 491 Retail Inventory Method......Page 492 Retail-Method Concepts......Page 493 Retail Inventory Method with Markups and Markdowns—Conventional Method......Page 494 Special Items Relating to Retail Method......Page 496 Evaluation of Retail Inventory Method......Page 497 Presentation of Inventories......Page 498 Analysis of Inventories......Page 499 Stable Prices—LIFO Retail Method......Page 500 Fluctuating Prices—Dollar-Value LIFO Retail Method......Page 501 Changing from Conventional Retail to LIFO......Page 503 FASB Codification and Exercises......Page 527 IFRS Insights......Page 528 10 Acquisition and Disposition of Property, Plant, and Equipment......Page 537 Watch Your Spending......Page 538 Property, Plant, and Equipment......Page 539 Cost of Land......Page 540 What Do the Numbers Mean? Robbing Peter to Pay Paul......Page 541 Interest Costs During Construction......Page 542 Qualifying Assets......Page 543 Amount to Capitalize......Page 544 Comprehensive Example of interest Capitalization......Page 545 Special Interests Related to Interest Capitalization......Page 547 Cash Discounts......Page 548 Deferred-Payment Contracts......Page 549 Issuance of Stock......Page 550 Exchanges of Nonmonetary Assets......Page 551 Other Asset Valuation Methods......Page 555 What Do the Numbers Mean? Disconnected......Page 556 Improvements and Replacements......Page 557 Rearrangement and Reinstallation......Page 558 Summary of Costs Subsequent to Acquisition......Page 559 Involuntary Conversion......Page 560 Appendix 10A: Accounting for Contributions......Page 561 Conditional Contribution......Page 562 Exchange Transactions......Page 563 FASB Codification and Exercises......Page 588 11 Depreciation, Impairments, and Depletion......Page 591 Here Come the Write-Offs......Page 592 Depreciation—A Method of Cost Allocation......Page 593 Factors Involved in the Depreciation Process......Page 594 What Do the Numbers Mean? Alphabet Dupe......Page 595 Methods of Depreciation......Page 596 Special Depreciation Methods......Page 599 Other Depreciation Issues......Page 601 Recognizing Impairments......Page 604 Measuring Impairments......Page 605 Impairment of Assets to Be Disposed Of......Page 606 Establishing a Depletion Base......Page 607 Write-Off of Resource Cost......Page 608 Estimating Recoverable Reserves......Page 609 Continuing Controversy......Page 610 Evolving Issue Full-Cost or Successful-Efforts?......Page 611 Presentation of Property, Plant, Equipment, and Natural Resources......Page 612 Analysis of Property, Plant, and Equipment......Page 613 Tax Lives (Recovery Periods)......Page 615 Example of MACRS......Page 616 Tax versus Book Depreciation......Page 617 What Do the Numbers Mean? In the Bonus (Boomerang?)......Page 618 FASB Codification and Exercises......Page 639 IFRS Insights......Page 640 Is This Sustainable?......Page 649 Characteristics......Page 651 Amortization of Intangibles......Page 652 Marketing-Related Intangible Assets......Page 654 Customer-Related Intangible Assets......Page 655 Contract-Related Intangible Assets......Page 656 Technology-Related Intangible Assets......Page 657 What Do the Numbers Mean? Patent Battles......Page 658 Goodwill......Page 659 Impairment of Limited-Life Intangibles......Page 662 Impairment of Indefinite-Life Intangibles Other Than Goodwill......Page 663 Impairment of Goodwill......Page 664 What Do the Numbers Mean? Impairment Ups and Downs......Page 665 Presentation of Intangible Assets......Page 666 Identifying R&D Activities......Page 667 Accounting for R&D Activities......Page 668 Costs Similar to R&D Costs......Page 669 Presentation of Research and Development Costs......Page 671 Evolving Issue Recognition of R&D and Internally Generated Intangibles......Page 672 FASB Codification and Exercises......Page 690 IFRS Insights......Page 691 13 Current Liabilities and Contingencies......Page 699 Now You See It, Now You Don’t......Page 700 Current Liabilities......Page 701 Notes Payable......Page 702 Unearned Revenues......Page 704 What Do the Numbers Mean? Microsoft’s Liabilities—Good or Bad?......Page 705 Income Taxes Payable......Page 706 Employee-Related Liabilities......Page 707 What Do the Numbers Mean? How Do You Want That?......Page 711 Current Maturities of Long-Term Debt......Page 712 Refinancing Illustration......Page 713 What Do the Numbers Mean? What About That Short-Term Debt?......Page 714 Gain Contingencies......Page 715 Loss Contingencies......Page 716 What Do the Numbers Mean? Frequent Flyers......Page 722 Evolving Issue Greenhouse Gases: Let’s Be Standard-Setters......Page 724 What Do the Numbers Mean? More Disclosure, Please......Page 725 Presentation of Current Liabilities......Page 726 Presentation of Contingencies......Page 727 Analysis of Current Liabilities......Page 728 What Do the Numbers Mean? I’ll Pay You Later......Page 730 FASB Codification and Exercises......Page 751 IFRS Insights......Page 752 Going Long......Page 759 Issuing Bonds......Page 761 What Do the Numbers Mean? All About Bonds......Page 762 Valuation and Accounting for Bonds Payable......Page 763 What Do the Numbers Mean? How’s My Rating?......Page 766 Effective-Interest Method......Page 767 Illustration......Page 771 Long-Term Notes Payable......Page 772 Notes Not Issued at Face Value......Page 773 Special Notes Payable Situations......Page 775 Fair Value Option......Page 778 What Do the Numbers Mean? Fair Value Fun House......Page 779 Off-Balance-Sheet Financing......Page 780 What Do the Numbers Mean? Obligated......Page 781 Presentation and Analysis of Long-Term Debt......Page 782 Appendix 14A: Troubled-Debt Restructuring......Page 784 Transfer of Assets......Page 785 Modification of Terms......Page 786 Example 1—No Gain for Debtor......Page 787 Example 2—Gain for Debtor......Page 789 Concluding Remarks......Page 791 FASB Codification and Exercises......Page 809 IFRS Insights......Page 810 It’s a Global Market......Page 815 What Do the Numbers Mean? 1209 North Orange Street......Page 817 Components of Stockholders’ Equity......Page 819 Issuance of Stock......Page 820 What Do the Numbers Mean? The Case of the Disappearing Receivable......Page 823 Preferred Stock......Page 824 Reacquisition of Shares......Page 826 Purchase of Treasury Stock......Page 828 Sale of Treasury Stock......Page 829 What Do the Numbers Mean? Buybacks—Good or Bad?......Page 830 Financial Condition and Dividend Distributions......Page 831 Types of Dividends......Page 832 Stock Dividends and Stock Splits......Page 835 What Do the Numbers Mean? Splitsville......Page 837 Presentation......Page 839 Analysis......Page 841 Dividend Preferences......Page 843 Book Value per Share......Page 844 Analytics in Action......Page 865 IFRS Insights......Page 866 Kicking the Habit......Page 873 Accounting for Convertible Debt......Page 875 Convertible Preferred Stock......Page 877 Stock Warrants......Page 878 Stock Warrants Issued with Other Securities......Page 879 Evolving Issue Is That All Debt?......Page 881 Stock Compensation Plans......Page 882 Measurement—Stock Compensation......Page 883 What Do the Numbers Mean? What’s the Debate About?......Page 884 Recognition—Stock Compensation......Page 885 Restricted Stock......Page 886 Disclosure of Compensation Plans......Page 888 Basic Earnings per Share......Page 890 Earnings per Share—Simple Capital Structure......Page 891 Comprehensive Example......Page 893 Diluted Earnings per Share......Page 894 Diluted EPS—Convertible Securities......Page 895 Diluted EPS—Options and Warrants......Page 897 Antidilution Revisited......Page 898 EPS Presentation and Disclosure......Page 899 Summary of EPS Computation......Page 901 Appendix 16A: Accounting for Stock-Appreciation Rights......Page 902 SARs—Share-Based Liability Awards......Page 903 Stock-Appreciation Rights Example......Page 904 Appendix 16B: Comprehensive Earnings per Share Example......Page 905 Diluted Earnings per Share......Page 906 FASB Codification and Exercises......Page 929 IFRS Insights......Page 930 Winners and Losers......Page 937 Investments in Debt Securities......Page 938 Debt Investment Classifications......Page 939 Held-to-Maturity Securities (Amortized Cost)......Page 940 Available-for-Sale Securities (Fair Value Through Other Comprehensive Income)......Page 942 Trading Securities (Fair Value Through Net Income)......Page 946 Investments in Equity Securities......Page 947 Holdings of Less Than 20%......Page 948 Holdings Between 20% and 50% (Equity Method)......Page 950 What Do the Numbers Mean? Who’s in Control Here?......Page 952 Fair Value Option......Page 953 Impairment of Value......Page 954 Reclassification Adjustments......Page 957 Transfers Related to Debt Securities......Page 960 Summary of Reporting Treatment of Securities......Page 961 Appendix 17A: Accounting for Derivative Instruments......Page 962 Producers and Consumers......Page 963 Speculators and Arbitrageurs......Page 964 Example of Derivative Financial Instrument—Speculation......Page 965 Differences Between Traditional and Derivative Financial Instruments......Page 967 Derivatives Used for Hedging......Page 968 Fair Value Hedge......Page 969 Cash Flow Hedge......Page 971 Embedded Derivatives......Page 973 Qualifying Hedge Criteria......Page 974 Summary of Derivatives Accounting......Page 975 Fair Value Hedge......Page 976 Financial Statement Presentation of an Interest Rate Swap......Page 978 Appendix 17B: Fair Value Disclosures......Page 979 Disclosure of Fair Value Information: Financial Instruments......Page 980 Disclosure of Fair Values: Impaired Assets or Liabilities......Page 982 Conclusion......Page 983 FASB Codification and Exercises......Page 1006 IFRS Insights......Page 1007 It’s Back......Page 1019 Background......Page 1021 Overview of the Five-Step Process: Boeing Example......Page 1022 Extended Example of the Five-Step Process: BEAN......Page 1023 Identifying the Contract with Customers—Step 1......Page 1027 Identifying Separate Performance Obligations—Step 2......Page 1028 Determining the Transaction Price—Step 3......Page 1029 Allocating the Transaction Price to Separate Performance Obligations—Step 4......Page 1033 Recognizing Revenue When (or as) Each Performance Obligation Is Satisfied—Step 5......Page 1035 Summary......Page 1036 Sales Returns and Allowances......Page 1037 Repurchase Agreements......Page 1040 Principal-Agent Relationships......Page 1042 Consignments......Page 1043 Warranties......Page 1045 Summary......Page 1047 Presentation......Page 1048 Disclosure......Page 1052 Evolving Issue Revenue: “It’s Like An Octopus”......Page 1053 Revenue Recognition over Time......Page 1054 Percentage-of-Completion Method......Page 1055 Completed-Contract Method......Page 1060 Long-Term Contract Losses......Page 1061 Appendix 18B: Revenue Recognition for Franchises......Page 1064 Franchise Accounting......Page 1065 Recognition of Franchise Rights Revenue over Time......Page 1067 FASB Codification and Exercises......Page 1094 Taxes Are A-Changing......Page 1095 Fundamentals of Accounting for Income Taxes......Page 1097 Future Taxable Amounts and Deferred Taxes......Page 1098 Future Deductible Amounts and Deferred Taxes......Page 1102 Deferred Tax Asset—Valuation Allowance......Page 1105 Income Statement Presentation......Page 1106 Specific Differences......Page 1107 Tax Rate Considerations......Page 1110 What Do the Numbers Mean? Global Tax Rates......Page 1111 Accounting for Net Operating Losses......Page 1112 Loss Carryforward Example......Page 1113 Balance Sheet......Page 1117 Note Disclosure......Page 1118 What Do the Numbers Mean? Imagination at Work......Page 1119 Income Statement......Page 1120 The Asset-Liability Method......Page 1122 First Year—2019......Page 1124 Computing Deferred Income Taxes—End of 2019......Page 1125 Deferred Tax Expense (Benefit) and the Journal Entry to Record Income Taxes—2019......Page 1126 Financial Statement Presentation—2019......Page 1127 Taxable Income and Income Taxes Payable—2020......Page 1128 Deferred Tax Expense (Benefit) and the Journal Entry to Record Income Taxes—2020......Page 1129 Appendix 19B: Accounting for Net Operating Loss Carrybacks......Page 1130 Loss Carryback Example......Page 1131 Loss Carryback with Carryforward......Page 1132 FASB Codification and Exercises......Page 1153 IFRS Insights......Page 1154 20 Accounting for Pensions and Postretirement Benefits......Page 1161 Where Have All the Pensions Gone?......Page 1162 Fundamentals of Pension Plan Accounting......Page 1163 Defined Contribution Plan......Page 1164 Defined Benefit Plan......Page 1165 The Role of Actuaries in Pension Accounting......Page 1166 Measures of the Liability......Page 1167 What Do the Numbers Mean? Roller Coaster......Page 1168 Components of Pension Expense......Page 1169 Using a Pension Worksheet......Page 1171 2020 Entries and Worksheet......Page 1172 Prior Service Cost (PSC)......Page 1173 Amortization......Page 1174 2021 Entries and Worksheet......Page 1175 Smoothing Unexpected Gains and Losses on Plan Assets......Page 1177 Corridor Amortization......Page 1178 2022 Entries and Worksheet......Page 1181 2023 Entries and Worksheet—A Comprehensive Example......Page 1183 Assets and Liabilities......Page 1185 Net Income......Page 1186 Comprehensive Income......Page 1187 Within the Notes to the Financial Statements......Page 1188 Special Issues......Page 1191 What Do the Numbers Mean? Who Guarantees the Guarantor?......Page 1192 Accounting Guidance......Page 1194 Differences Between Pension Benefits and Healthcare Benefits......Page 1195 Obligations Under Postretirement Benefits......Page 1196 Postretirement Expense......Page 1197 2020 Entries and Worksheet......Page 1198 Recognition of Gains and Losses......Page 1199 2021 Entries and Worksheet......Page 1200 Disclosures in Notes to the Financial Statements......Page 1201 What Do the Numbers Mean? Want Some Bad News?......Page 1203 FASB Codification and Exercises......Page 1227 IFRS Insights......Page 1228 Times Are A-Changing......Page 1243 A Look at the Lessee......Page 1245 A Look at the Lessor......Page 1246 Advantages of Leasing—Lessors......Page 1247 Conceptual Nature of a Lease......Page 1248 Lease Classification......Page 1249 Lessee Accounting for Finance Leases: An Example......Page 1253 Lessor Accounting for Sales-Type Leases......Page 1256 What Do the Numbers Mean? Not So Fast......Page 1257 Sales-Type Lease Example......Page 1258 Lessee Accounting for Operating Leases......Page 1260 Lessor Accounting for Operating Leases......Page 1263 Special Lease Accounting Problems......Page 1264 Residual Values......Page 1265 Other Lease Adjustments......Page 1269 Bargain Purchase Options......Page 1271 Presentation, Disclosure, and Analysis......Page 1272 Evolving Issue Bring It On!......Page 1276 Accounting Issues in Sale-Leaseback Transactions......Page 1277 Financing Transaction (Failed Sale)......Page 1278 Sale-Leaseback Example......Page 1279 Direct Finance Lease Accounting......Page 1281 Direct Financing Lease Example......Page 1282 Lease Classification......Page 1286 Accounting for Finance Lease......Page 1287 Lease Terms: Scenario 2......Page 1288 Lessee Accounting—Operating Lease......Page 1289 Lessor Accounting—Operating Lease......Page 1292 FASB Codification and Exercises......Page 1321 IFRS Insights......Page 1322 22 Accounting Changes and Error Analysis......Page 1329 In the Dark......Page 1330 Background......Page 1331 Changes in Accounting Principle......Page 1332 What Do the Numbers Mean? Quite a Change......Page 1333 What Do the Numbers Mean? Change Management......Page 1335 Impracticability......Page 1342 Other Accounting Changes......Page 1343 Changes in Accounting Estimates......Page 1344 Changes in Reporting Entity......Page 1346 Accounting Errors......Page 1347 Example of Error Correction......Page 1348 Summary of Accounting Changes and Correction of Errors......Page 1350 Error Analysis......Page 1352 Balance Sheet and Income Statement Errors......Page 1353 Comprehensive Example: Numerous Errors......Page 1356 What Do the Numbers Mean? Guard the Financial Statements!......Page 1358 Preparation of Financial Statements with Error Corrections......Page 1359 Dividends in Excess of Earnings......Page 1361 Change to the Equity Method......Page 1362 FASB Codification and Exercises......Page 1388 IFRS Insights......Page 1389 Show Me the Money!......Page 1393 Usefulness of the Statement of Cash Flows......Page 1395 Classification of Cash Flows......Page 1396 What Do the Numbers Mean? How’s My Cash Flow?......Page 1397 Preparing the Statement of Cash Flows......Page 1398 Illustrations—Tax Consultants Inc.......Page 1399 What Do the Numbers Mean? Earnings and Cash Flow Management?......Page 1401 Net Cash Flow from Operating Activities—Direct Method......Page 1409 Evolving Issue Direct versus Indirect......Page 1414 Adjustments to Net Income......Page 1416 Accounts Receivable (Net)......Page 1419 Other Working Capital Changes......Page 1421 Net Losses......Page 1422 Significant Noncash Transactions......Page 1423 Use of a Worksheet......Page 1424 Preparation of the Worksheet......Page 1426 Analysis of Transactions......Page 1429 Preparation of Final Statement......Page 1432 FASB Codification and Exercises......Page 1461 IFRS Insights......Page 1462 24 Full Disclosure in Financial Reporting......Page 1469 High-Quality Financial Reporting—Always in Fashion......Page 1470 Full Disclosure Principle......Page 1471 Increase in Reporting Requirements......Page 1472 Differential Disclosure......Page 1473 Notes to the Financial Statements......Page 1474 Related Parties......Page 1476 Post-Balance-Sheet Events (Subsequent Events)......Page 1477 Reporting for Diversified (Conglomerate) Companies......Page 1479 Interim Reports......Page 1483 Evolving Issue It’s Faster but Is It Better?......Page 1488 Auditor’s Report......Page 1489 Management’s Reports......Page 1492 Fraudulent Financial Reporting......Page 1494 Internet Financial Reporting......Page 1497 Reporting on Financial Forecasts and Projections......Page 1498 Criteria for Making Accounting and Reporting Choices......Page 1499 Perspective on Financial Statement Analysis......Page 1500 Ratio Analysis......Page 1501 Limitations of Ratio Analysis......Page 1503 Comparative Analysis......Page 1504 Percentage (Common-Size) Analysis......Page 1505 FASB Codification and Exercises......Page 1526 IFRS Insights......Page 1527 Private Company Decision-Making Framework......Page 1535 Accounting for Identifiable Intangible Assets......Page 1536 Accounting for Goodwill......Page 1538 Summary......Page 1540 Appendix B Specimen Financial Statements: The Procter & Gamble Company......Page 1541 Appendix C Specimen Financial Statements: The Coca-Cola Company......Page 1547 Appendix D Specimen Financial Statements: PepsiCo, Inc.......Page 1551 Appendix E Specimen Financial Statements: Marks and Spencer plc......Page 1555 Index......Page 1559 EULA......Page 1584 Essential knowledge of International Financial Reporting Standards for students of global accounting This important work provides the tools global accounting students need to understand international financial reporting standards (IFRS) and how they are applied in practice. This text emphasizes fair value, proper accounting for financial instruments, and new developments in international accounting. By presenting IFRS in light of current accounting practice, this book helps students gain practical knowledge of the topic that they can apply as they advance into their global accounting careers. With this revised and updated Fourth Edition, students will develop a firm conceptual understanding of IFRS, as well as the ability to integrate their learning through practical exercises. Throughout this text, Global Accounting Insights highlight the important differences that remain between IFRS and U.S. GAAP, discussing the ongoing joint convergence efforts to resolve them. Comprehensive, up-to-date, and accurate, Intermediate Accounting IFRS includes proven pedagogical tools designed to help students learn more effectively