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2. Financial Statements and Financial Reporting
3. Parties Involved in Standard-Setting
4. Generally Accepted Accounting Principles
5. Issues in Financial Reporting
6. FASB Codification
7. IFRS Insights
Chapter 2: Conceptual Framework for Financial Reporting
1. What Is It?
2. Conceptual Framework
3. First Level: Basic Objective
4. Second Level: Fundamental Concepts
5. Third Level: Recognition and Measurement Concepts
6. FASB Codification
7. IFRS Insights
Chapter 3: The Accounting Information System
1. Needed: A Reliable Information System
2. Accounting Information System
3. The Accounting Cycle
4. Financial Statements for a Merchandising Company
5. APPENDIX 3A Cash-Basis Accounting versus Accrual-Basis Accounting
6. Conversion from Cash Basis to Accrual Basis
7. Theoretical Weaknesses of the Cash Basis
8. APPENDIX 3B Using Reversing Entries
9. Illustration of Reversing Entries—Accruals
10.Illustration of Reversing Entries—Deferrals
11.Summary of Reversing Entries
12.APPENDIX 3C Using a Worksheet: The Accounting Cycle Revisited
13.Worksheet Columns
14.Adjustments Entered on the Worksheet
15.Preparing Financial Statements from a Worksheet
16.IFRS Insights
Chapter 4: Income Statement and Related Information
1. Financial Statements Are Changing
2. Income Statement
3. Format of the Income Statement
4. Reporting Various Income Items
5. Other Reporting Issues
6. FASB Codification
7. IFRS Insights
Chapter 5: Balance Sheet and Statement of Cash Flows
1. Hey, It Doesn't Balance!
2. Balance Sheet
3. Statement of Cash Flows
4. Additional Information
5. APPENDIX 5A Ratio Analysis—A Reference
6. Using Ratios to Analyze Performance
7. APPENDIX 5B Specimen Financial Statements: The Procter & Gamble
Company
8. FASB Codification
9. IFRS Insights
Chapter 6: Accounting and the Time Value of Money
1. How Do I Measure That?
2. Basic Time Value Concepts
3. Single-Sum Problems
4. Annuities
5. More Complex Situations
6. Present Value Measurement
7. FASB Codification
Chapter 7: Cash and Receivables
1. Please Release Me?
2. Cash
3. Accounts Receivable
4. Notes Receivable
5. Special Issues
6. APPENDIX 7A Cash Controls
7. Using Bank Accounts
8. The Imprest Petty Cash System
9. Physical Protection of Cash Balances
10.Reconciliation of Bank Balances
11.APPENDIX 7B Impairments of Receivables
12.Impairment Measurement and Reporting
13.FASB Codification
14.IFRS Insights
Chapter 8: Valuation of Inventories: A Cost-Basis Approach
1. To Switch or Not to Switch
2. Inventory Issues
3. Physical Goods Included in Inventory
4. Costs Included in Inventory
5. Which Cost Flow Assumption to Adopt?
6. Special Issues Related to LIFO
7. Basis for Selection of Inventory Method
8. FASB Codification
Chapter 9: Inventories: Additional Valuation Issues
1. Not What It Seems to Be
2. Lower-of-Cost-or-Market
3. Valuation Bases
4. The Gross Profit Method of Estimating Inventory
5. Retail Inventory Method
6. Presentation and Analysis
7. APPENDIX 9A LIFO Retail Methods
8. Stable Prices—LIFO Retail Method
9. Fluctuating Prices—Dollar-Value LIFO Retail Method
10.Subsequent Adjustments Under Dollar-Value LIFO Retail
11.Changing from Conventional Retail to LIFO
12.FASB Codification
13.IFRS Insights
Chapter 10: Acquisition and Disposition of Property, Plant, and Equipment
1. Watch Your Spending
2. Property, Plant, and Equipment
3. Valuation of Property, Plant, and Equipment
4. Costs Subsequent to Acquisition
5. Disposition of Property, Plant, and Equipment
6. FASB Codification
Chapter 11: Depreciation, Impairments, and Depletion
1. Here Come the Write-Offs
2. Depreciation—A Method of Cost Allocation
3. Impairments
4. Depletion
5. Presentation and Analysis
6. APPENDIX 11A Income Tax Depreciation
7. Modified Accelerated Cost Recovery System
8. Optional Straight-Line Method
9. Tax versus Book Depreciation
10.FASB Codification
11.IFRS Insights
Chapter 12: Intangible Assets
1. Is This Sustainable?
2. Intangible Asset Issues
3. Types of Intangible Assets
4. Impairment of Intangible Assets
5. Research and Development Costs
6. Presentation of Intangibles and Related Items
7. FASB Codification
8. IFRS Insights
Chapter 13: Current Liabilities and Contingencies
1. Now You See It, Now You Don't
2. Current Liabilities
3. Contingencies
4. Presentation and Analysis
5. FASB Codification
6. IFRS Insights
Chapter 14: Long-Term Liabilities
1. Going Long
2. Bonds Payable
3. Long-Term Notes Payable
4. Reporting and Analyzing Liabilities
5. APPENDIX 14A Troubled-Debt Restructurings
6. Settlement of Debt
7. Modification of Terms
8. Concluding Remarks
9. FASB Codification
10.IFRS Insights
Chapter 15: Stockholders’ Equity
1. It's a Global Market
2. The Corporate Form of Organization
3. Corporate Capital
4. Preferred Stock
5. Dividend Policy
6. Presentation and Analysis of Stockholders’ Equity
7. APPENDIX 15A Dividend Preferences and Book Value per Share
8. Dividend Preferences
9. Book Value per Share
10.FASB Codification
11.IFRS Insights
Chapter 16: Dilutive Securities and Earnings per Share
1. Kicking the Habit
2. Dilutive Securities
3. Accounting for Stock Compensation
4. Computing Earnings per Share
5. APPENDIX 16A Accounting for Stock-Appreciation Rights
6. SARS—Share-Based Equity Awards
7. SARS—Share-Based Liability Awards
8. Stock-Appreciation Rights Example
9. APPENDIX 16B Comprehensive Earnings per Share Example
10.Diluted Earnings per Share
11.FASB Codification
12.IFRS Insights
Chapter 17: Investments
1. What to Do?
2. Investments in Debt Securities
3. Investments in Equity Securities
4. Additional Measurement Issues
5. Reclassifications and Transfers
6. APPENDIX 17A Accounting for Derivative Instruments
7. Defining Derivatives
8. Who Uses Derivatives, and Why?
9. Basic Principles in Accounting for Derivatives
10.Derivatives Used for Hedging
11.Other Reporting Issues
12.Comprehensive Hedge Accounting Example
13.Controversy and Concluding Remarks
14.APPENDIX 17B Variable-Interest Entities
15.What About GAAP?
16.Consolidation of Variable-Interest Entities
17.APPENDIX 17C Fair Value Disclosures
18.Disclosure of Fair Value Information: Financial Instruments
19.Disclosure of Fair Values: Impaired Assets or Liabilities
20.Conclusion
21.FASB Codification
22.IFRS Insights
Chapter 18: Revenue Recognition
1. It's Back
2. Overview of Revenue Recognition
3. Revenue Recognition at Point of Sale (Delivery)
4. Revenue Recognition before Delivery
5. Revenue Recognition after Delivery
6. APPENDIX 18A Revenue Recognition for Franchises
7. Initial Franchise Fees
8. Continuing Franchise Fees
9. Bargain Purchases
10.Options to Purchase
11.Franchisor's Cost
12.Disclosures of Franchisors
13.FASB Codification
14.IFRS Insights
Chapter 19: Accounting for Income Taxes
1. How Much Is Enough?
2. Fundamentals of Accounting for Income Taxes
3. Accounting for Net Operating Losses
4. Financial Statement Presentation
5. Review of the Asset-Liability Method
6. APPENDIX 19A Comprehensive Example of Interperiod Tax Allocation
7. First Year—2013
8. Second Year—2014
9. FASB Codification
10.IFRS Insights
Chapter 20: Accounting for Pensions and Postretirement Benefits
1. Where Have All the Pensions Gone?
2. Nature of Pension Plans
3. Accounting for Pensions
4. Using a Pension Worksheet
5. Reporting Pension Plans in Financial Statements
6. APPENDIX 20A Accounting for Postretirement Benefits
7. Accounting Guidance
8. Differences Between Pension Benefits and Healthcare Benefits
9. Postretirement Benefits Accounting Provisions
10.Illustrative Accounting Entries
11.Disclosures in Notes to the Financial Statements
12.Actuarial Assumptions and Conceptual Issues
13.FASB Codification
14.IFRS Insights
Chapter 21: Accounting for Leases
1. More Companies Ask, “Why Buy?”
2. The Leasing Environment
3. Accounting by the Lessee
4. Accounting by the Lessor
5. Special Lease Accounting Problems
6. APPENDIX 21A Sale-Leasebacks
7. Determining Asset Use
8. Sale-Leaseback Example
9. FASB Codification
10.IFRS Insights
Chapter 22: Accounting Changes and Error Analysis
1. In the Dark
2. Accounting Changes
3. Changes in Accounting Principle
4. Changes in Accounting Estimates
5. Changes in Reporting Entity
6. Accounting Errors
7. Error Analysis
8. APPENDIX 22A Changing from or to the Equity Method
9. Change from the Equity Method
10.Change to the Equity Method
11.FASB Codification
12.IFRS Insights
Chapter 23: Statement of Cash Flows
1. Show Me the Money!
2. Preparation of the Statement of Cash Flows
3. Illustrations—Tax Consultants Inc.
4. Special Problems in Statement Preparation
5. Use of a Worksheet
6. FASB Codification
7. IFRS Insights
Chapter 24: Full Disclosure in Financial Reporting
1. High-Quality Financial Reporting—Always in Fashion
2. Full Disclosure Principle
3. Notes to the Financial Statements
4. Disclosure Issues
5. Auditor's and Management's Reports
6. Current Reporting Issues
7. APPENDIX 24A Basic Financial Statement Analysis
8. Perspective on Financial Statement Analysis
9. Ratio Analysis
10.Comparative Analysis
11.Percentage (Common-Size) Analysis
12.FASB Codification
13.IFRS Insights
Index
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PLATE 137
THE EMPEROR CHARLES V., THE EMPRESS ISABEL, HIS DAUGHTER MARIA, HIS
SISTERS ELEONORA, QUEEN OF FRANCE, AND MARIA, QUEEN OF HUNGARY.
(Escorial.)
PLATE 142
POMPEIAN HALL.
(Palace.)
PLATE 143
PLATE 145
PLATE 147
PLATE 149
PLATE 151
PLATE 153
PLATE 154
PLATE 156
FRAGMENT OF THE BATTLE OF HIGUERUELA, 1431, BY GRANELO AND FABRICIO.
(Hall of Battles in the Escorial.)
PLATE 157
BATTLE OF GRAVELINAS.
(Hall of Battles.)
PLATE 161
DEPARTURE OF THE SPANISH ARMY FROM THE FORTIFIED PLACE OF ST. QUINTIN.
(Hall of Battles.)
PLATE 166
PLATE 167
EFFIGIES OF ALL THE KINGS OF SPAIN, FROM THE TIME OF THE GOTHS, UNTIL PHILIP
V., TAKEN FROM CHARTS, MEDALS, AND PAINTINGS.
(Library of the Escorial.)
PLATE 168