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Intermediate Accounting: IFRS Edition, 2nd Edition

Book Description

The Second Edition of Intermediate Accounting: IFRS Edition, by Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield, provides the tools global accounting students need to understand what IFRS is and how it is applied in practice. The emphasis on fair value, the proper accounting for financial instruments, and the new developments related to leasing, revenue recognition, and financial statement presentation are examined in light of current practice. New Global Accounting Insights highlight the important differences that remain between IFRS and US GAAP, and discuss the ongoing joint convergence efforts to resolve them. Comprehensive, up-to-date, and accurate, Intermediate Accounting: IFRS Edition includes proven pedagogical tools, designed to help students learn more effectively and to answer the changing needs of this course.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Dedication
  4. Copyright
  5. Contents
  6. Author Commitment
  7. From the Authors
  8. What's New?
  9. Content Changes by Chapter
  10. Contents
  11. Acknowledgments
  12. Chapter 1: Financial Reporting and Accounting Standards
    1. Revolution in International Financial Reporting
    2. Global Markets
    3. Objective of Financial Reporting
    4. Standard-Setting Organizations
    5. Financial Reporting Challenges
    6. Conclusion
    7. Global Accounting Insights
    8. Authoritative Literature
  13. 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, Measurement, and Disclosure Concepts
    6. Global Accounting Insights
    7. Authoritative Literature
  14. 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. Global Accounting Insights
    6. APPENDIX 3A Cash-Basis Accounting versus Accrual-Basis Accounting
    7. Conversion from Cash Basis to Accrual Basis
    8. Theoretical Weaknesses of the Cash Basis
    9. APPENDIX 3B Using Reversing Entries
    10. Illustration of Reversing Entries—Accruals
    11. Illustration of Reversing Entries—Deferrals
    12. Summary of Reversing Entries
    13. APPENDIX 3C Using a Worksheet: The Accounting Cycle Revisited
    14. Worksheet Columns
    15. Adjustments Entered on the Worksheet
    16. Preparing Financial Statements from a Worksheet
  15. Chapter 4: Income Statement and Related Information
    1. Financial Statements Are Changing
    2. Income Statement
    3. Format of the Income Statement
    4. Reporting Within the Income Statement
    5. Other Reporting Issues
    6. Global Accounting Insights
    7. Authoritative Literature
  16. Chapter 5: Statement of Financial Position and Statement of Cash Flows
    1. Hey, It Doesn't Balance!
    2. Statement of Financial Position
    3. Statement of Cash Flows
    4. Additional Information
    5. Global Accounting Insights
    6. APPENDIX 5A Ratio Analysis—A Reference
    7. Using Ratios to Analyze Performance
    8. Authoritative Literature
  17. 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. Authoritative Literature
  18. Chapter 7: Cash and Receivables
    1. No-Tell Nortel
    2. Cash
    3. Accounts Receivable
    4. Notes Receivable
    5. Special Issues Related to Receivables
    6. Global Accounting Insights
    7. APPENDIX 7A Cash Controls
    8. Using Bank Accounts
    9. The Imprest Petty Cash System
    10. Physical Protection of Cash Balances
    11. Reconciliation of Bank Balances
    12. APPENDIX 7B Impairments of Receivables
    13. Impairment Measurement and Reporting
    14. Authoritative Literature
  19. Chapter 8: Valuation of Inventories: A Cost-Basis Approach
    1. It Should Be Easy, but It Isn't!
    2. Inventory Issues
    3. Physical Goods Included in Inventory
    4. Costs Included in Inventory
    5. Which Cost Flow Assumption to Adopt?
    6. APPENDIX 8A LIFO Cost Flow Assumption
    7. Last-In, First-Out (LIFO)
    8. Inventory Valuation Methods—Summary Analysis
    9. Authoritative Literature
  20. Chapter 9: Inventories: Additional Valuation Issues
    1. Not What It Seems to Be
    2. Lower-of-Cost-or-Net Realizable Value (LCNRV)
    3. Valuation Bases
    4. The Gross Profit Method of Estimating Inventory
    5. Retail Inventory Method
    6. Presentation and Analysis
    7. Global Accounting Insights
    8. Authoritative Literature
  21. Chapter 10: Acquisition and Disposition of Property, Plant, and Equipment
    1. Watch Your Spending
    2. Property, Plant, and Equipment
    3. Acquisition of Property, Plant, and Equipment
    4. Valuation of Property, Plant, and Equipment
    5. Costs Subsequent to Acquisition
    6. Disposition of Property, Plant, and Equipment
    7. Authoritative Literature
  22. Chapter 11: Depreciation, Impairments, and Depletion
    1. Here Come the Write-Offs
    2. Depreciation—A Method of Cost Allocation
    3. Impairments
    4. Depletion
    5. Revaluations
    6. Presentation and Analysis
    7. Global Accounting Insights
    8. APPENDIX 11A Revaluation of Property, Plant, and Equipment
    9. Revaluation of Land
    10. Revaluation of Depreciable Assets
    11. Authoritative Literature
  23. 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. Global Accounting Insights
    8. Authoritative Literature
  24. Chapter 13: Current Liabilities, Provisions, and Contingencies
    1. Now You See It, Now You Don't
    2. Current Liabilities
    3. Provisions
    4. Contingencies
    5. Presentation and Analysis
    6. Authoritative Literature
  25. Chapter 14: Non-Current Liabilities
    1. Going Long
    2. Bonds Payable
    3. Long-Term Notes Payable
    4. Special Issues Related to Non-Current Liabilities
    5. Global Accounting Issues
    6. Authoritative Literature
  26. Chapter 15: Equity
    1. It's a Global Market
    2. The Corporate Form of Organization
    3. Equity
    4. Preference Shares
    5. Dividend Policy
    6. Presentation and Analysis of Equity
    7. Global Accounting Insights
    8. APPENDIX 15A Dividend Preferences and Book Value per Share
    9. Dividend Preferences
    10. Book Value per Share
    11. Authoritative Literature
  27. Chapter 16: Dilutive Securities and Earnings per Share
    1. Kicking the Habit
    2. Dilutive Securities and Compensation Plans
    3. Computing Earnings per Share
    4. Global Accounting Insights
    5. APPENDIX 16A Accounting for Share-Appreciation Rights
    6. SARS—Share-Based Equity Awards
    7. SARS—Share-Based Liability Awards
    8. Share-Appreciation Rights Example
    9. APPENDIX 16B Comprehensive Earnings per Share Example
    10. Diluted Earnings per Share
    11. Authoritative Literature
  28. Chapter 17: Investments
    1. What to Do?
    2. Accounting for Financial Assets
    3. Debt Investments
    4. Equity Investments
    5. Other Reporting Issues
    6. Global Accounting Insights
    7. APPENDIX 17A Accounting for Derivative Instruments
    8. Defining Derivatives
    9. Who Uses Derivatives, and Why?
    10. Basic Principles in Accounting for Derivatives
    11. Derivatives Used for Hedging
    12. Other Reporting Issues
    13. Comprehensive Hedge Accounting Example
    14. Controversy and Concluding Remarks
    15. APPENDIX 17B Fair Value Disclosures
    16. Disclosure of Fair Value Information: Financial Instruments
    17. Disclosure of Fair Values: Impaired Assets or Liabilities
    18. Conclusion
    19. Authoritative Literature
  29. Chapter 18: Revenue Recognition
    1. It's Back
    2. Overview of Revenue Recognition
    3. The Five-Step Process
    4. Other Revenue Recognition Issues
    5. Presentation and Disclosure
    6. APPENDIX 18A Long-Term Construction Contracts
    7. Revenue Recognition over Time
    8. APPENDIX 18B Revenue Recognition for Franchises
    9. Franchise Accounting
    10. Recognition of Franchise Rights Revenue over Time
    11. Authoritative Literature
  30. Chapter 19: Accounting for Income Taxes
    1. Safe (Tax) Haven?
    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. Global Accounting Insights
    7. APPENDIX 19A Comprehensive Example of Interperiod Tax Allocation
    8. First Year—2014
    9. Second Year—2015
    10. Authoritative Literature
  31. Chapter 20: Accounting for Pensions and Postretirement Benefits
    1. Pension Peril
    2. Nature of Pension Plans
    3. Accounting for Pensions
    4. Using a Pension Worksheet
    5. Reporting Pension Plans in Financial Statements
    6. Global Accounting Insights
    7. Authoritative Literature
  32. 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 Accounting Problems
    6. Global Accounting Insights
    7. APPENDIX 21A Examples of Lease Arrangements
    8. Example 1: Harmon, Inc.
    9. Example 2: Arden's Oven Co.
    10. Example 3: Mendota Truck Inc.
    11. Example 4: Appleland Computer
    12. APPENDIX 21B Sale-Leasebacks
    13. Determining Asset Use
    14. Sale-Leaseback Example
    15. Authoritative Literature
  33. Chapter 22: Accounting Changes and Error Analysis
    1. Needed: Valid Comparisons
    2. Accounting Changes
    3. Changes in Accounting Policy
    4. Changes in Accounting Estimates
    5. Accounting Errors
    6. Error Analysis
    7. Global Accounting Insights
    8. Authoritative Literature
  34. 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. Global Accounting Insights
    7. Authoritative Literature
  35. Chapter 24: Presentation and Disclosure in Financial Reporting
    1. We Need Better, Not More
    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. Global Accounting Insights
    8. APPENDIX 24A Basic Financial Statement Analysis
    9. Perspective on Financial Statement Analysis
    10. Ratio Analysis
    11. Comparative Analysis
    12. Percentage (Common-Size) Analysis
    13. APPENDIX 24B First-Time Adoption of IFRS
    14. General Guidelines
    15. Implementation Steps
    16. Summary
    17. Authoritative Literature
  36. Appendix A: Specimen Financial Statements: Marks and Spencer Group plc
  37. Appendix B: Specimen Financial Statements: adidas AG
  38. Appendix C: Specimen Financial Statements: Puma SE
  39. INDEX