Part VI
Feeling Brave? Tackling More Advanced Financial Accounting Topics
In this part . . .
The topics I discuss here are most likely covered just briefly in your financial accounting course and textbook. If you decide to continue your accounting education, these are subjects you’ll definitely encounter.
First up are business combinations, such as mergers and acquisitions; in Chapter 17, I show you how financial accountants record them. Next is everyone’s favorite topic: accounting for income taxes! (Try to stay calm — I know it’s tough.) The financial statements you prepare as a financial accountant will probably differ from the financial information you calculate for income tax returns. In Chapter 18, I explain the differences.
Chapter 19 shows you how to account for two types of leases: capital and operating. I discuss this topic from the standpoint of both the lessee (the party doing the leasing) and the lessor (the property owner). Finally, in Chapter 20 you find out how to fix inadvertent mistakes in the financial statements. I also cover how to account for a change from one accounting method to another and what to do when you find out an accounting estimate is incorrect.
