Intermediate accounting /
Intermediate accounting /
J. David Spiceland ... [et al.].
- Fifth edition
- xxvii, 1203, G-8, C-1, I-20, P-2 : illustrations (some color) ; 29 cm.
Rev. ed. of: Intermediate accounting / J. David Spiceland, James F. Sepe, Lawrence A. Tomassini. 4th ed. Includes index.
Section 1: Role Of Accounting As An Information System --
1: Environment and theoretical structure of financial accounting --
Part A: Financial accounting environment --
Economic environment and financial reporting --
Investment credit decision-a cash flow perspective --
Cash versus accrual accounting --
Development of financial accounting and reporting standards --
Historical perspective and standards --
Establishment of accounting standards-a political process --
Our global marketplace --
Role of the auditor --
Financial reporting reform --
Move away from rules-based standards? --
Ethics in accounting --
Ethics and professionalism --
Analytical model for ethical decisions --
Part B: Conceptual framework --
Objectives of financial reporting --
Qualitive characteristics of accounting information --
Primary qualitative characteristics --
Secondary qualitative characteristics --
Practical boundaries (constraints) to achieving desired qualitative characteristics --
Cost effectiveness --
Materiality --
Conservation --
Elements of financial statements --
Recognition and measurement concepts --
Recognition --
Measurement --
Underlying assumptions --
Accounting principles --
Evolution of accounting principles --
Asset/liability approach --
Move toward fair value --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Broaden your perspective --
2: Review of the accounting process --
Basic model --
Accounting equation --
Account relationships --
Accounting processing cycle --
Concept review exercise: Journal entries for external transactions --
Adjusting entries --
Prepayments --
Accruals --
Estimates --
Concept review exercise: Adjusting entries --
Preparing the financial statements --
Income statement --
Balance sheet --
Statement of cash flows --
Statement of shareholder's equity --
Closing process --
Concept review exercise: Financial statement preparation and closing --
Conversion from cash basis to accrual basis --
Appendix 2A: Use of a worksheet --
Appendix 2B: Reversing entries --
Appendix 2C: Subsidiary ledgers and special journals --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
3: Balance sheet and financial disclosures --
Part A: Balance sheet --
Usefulness and limitations --
Classifications --
Assets --
Liabilities --
Shareholders' equity --
Concept review exercise: Balance sheet classification --
Part B: Financial disclosures --
Disclosure notes --
Summary of significant accounting policies --
Subsequent events --
Noteworthy events and transactions --
Management discussion and analysis --
Management's responsibilities --
Auditors' report --
Compensation of directors and top executives --
Part C: Risk analysis --
Using financial statement information --
Liquidity ratios --
Financing ratios --
Appendix 3: Reporting segment information --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 4: Income statement and statement of cash flows --
Part A: Income statement and comprehensive income --
Income from continuing operations --
Revenues, expenses, gains, and losses --
Income tax expense --
Operating versus nonoperating income --
Income statement formats --
Earnings quality --
Manipulating income and income smoothing --
Operating income and earnings quality --
Nonoperating income and earnings quality --
Separately reported items --
Intraperiod income tax allocation --
Discontinued operations --
Extraordinary items --
Unusual or infrequent items --
Accounting changes --
Change in accounting principle --
Change in depreciation, amortization, or depletion method --
Change in accounting estimate --
Change in reporting entity --
Correction of accounting errors --
Prior period adjustments --
Earnings per share disclosures --
Comprehensive income --
Other comprehensive income --
Flexibility in reporting --
Accumulated other comprehensive income --
Concept review exercise: Income statement presentation --
Part B: Statement of cash flows --
Usefulness of the statement of cash flows --
Classifying cash flows --
Operating activities --
Investing activities --
Financing activities --
Noncash investing and financing activities --
Concept review exercise: Statement of cash flows --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 4-1 --
5: Income measurement and profitability analysis --
Part A: Revenue recognition --
Completion of the earnings process within a single reporting period --
When collectability is reasonably certain --
Significant uncertainty of collectability --
Concept review exercise: Installment sales --
Completion of the earnings process over multiple reporting periods --
Service revenue earned over time --
Long-term contracts --
Comparison of the two methods --
Concept review exercise: Long-term construction contracts --
Industry-specific revenue issues --
Software and other multiple-deliverable arrangements --
Franchise sales --
Part B: Profitability analysis --
Activity ratios --
Profitability ratios --
Profitability analysis-an illustration --
Appendix 5: Interim reporting --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 5-1 --
6: Time value of money concepts --
Part A: Basic concepts --
Time value of money --
Simple versus compound interest --
Valuing a single cash flow amount --
Future value of a single amount --
Present value of a single amount --
Solving for other values when FV and PV are known --
Concept review exercise: Valuing a single cash flow amount --
Preview of accounting applications of present value techniques-single cash amount --
Expected cash flow approach --
Part B: Basic annuities --
Future value of an annuity --
Future value of an ordinary annuity --
Future value of an annuity due --
Present value of an annuity --
Present value of an ordinary annuity --
Present value of an annuity due --
Present value of a deferred annuity --
Financial calculators and excel --
Solving for unknown values in present value situations --
Concept review exercise: Annuities --
Preview of accounting applications of present value techniques-annuities --
Valuation of long-term bonds --
Valuation of long-term leases --
Valuation of pension obligations --
Summary of time value of money concepts --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. Section 2: Economic Resources --
7: Cash and receivables --
Part A: Cash and cash equivalents --
Internal control --
Internal control procedures-cash receipts --
Internal control procedures-cash disbursements --
Restricted cash and compensating balances --
Decision makers' perspective --
Part B: Current receivables --
Accounts receivable --
Initial valuation of accounts receivable --
Subsequent valuation of accounts receivable --
Concept review exercise: Uncollectible accounts receivable --
Notes receivable --
Interest-bearing notes --
Noninterest-bearing notes --
Subsequent valuation of notes receivable --
Financing with receivables --
Secured borrowing --
Sale of receivables --
Discounting a note --
Concept review exercise: Financing with receivables --
Decision makers' perspective --
Appendix 7: Cash controls --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
8: Inventories: measurement --
Part A: Recording and measuring inventory --
Types of inventory --
Merchandising inventory --
Manufacturing inventories --
Perpetual inventory system --
Periodic inventory system --
Comparison of the perpetual and periodic inventory systems --
What is included in inventory? --
Physical quantities included in inventory --
Expenditures included in inventory --
Inventory cost flow assumptions --
Specific identification --
Average cost --
First-In, First-Out (FIFO) --
Last-In, Last-Out (LILO) --
Comparison of cost flow methods --
Decision makers' perspective-factors influencing method choice --
Concept review exercise: Inventory cost flow methods --
Decision makers' perspective --
Inventory management --
Earnings quality --
Part B: Methods of simplifying LIFO --
LIFO inventory pools --
Dollar-value LIFO --
Advantages of DVL --
Cost indexes --
DVL inventory estimation technique --
Concept review exercise: Dollar-value LIFO --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
9: Inventories: additional issues --
Part A: Reporting-lower of cost or market --
Determining market value --
Applying lower of cost or market --
Adjusting cost to market --
Concept review exercise: Lower of cost or market --
Part B: Inventory estimation techniques --
Gross profit method --
Word of caution --
Retail inventory method --
Retail terminology --
Cost flow methods --
Other issues pertaining to the retail method --
Concept review exercise: Retail inventory method --
Part C: Dollar-value LIFO retail --
Concept review exercise: Dollar-value LIFO retail method --
Part D: Change in inventory method and inventory errors --
Change in inventory method --
Most inventory changes --
Change to the LIFO method --
Inventory errors --
When the inventory error is discovered the following year --
When the inventory error is discovered subsequent to the following year --
Concept review exercise: Inventory errors --
Earnings quality --
Appendix 9: Purchase commitments --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 9-1 --
CPA simulation 9-2 --
10: Operational assets: acquisition and disposition --
Part A: Valuation at acquisition --
Types of operational assets --
Costs to be capitalized --
Property, plant, and equipment --
Intangible assets --
Lump-sum purchases --
Noncash acquisitions --
Deferred payments --
Issuance of equity securities --
Donated assets --
Decision makers' perspective --
Part B: Dispositions and exchanges --
Dispositions --
Exchanges --
Fair value not determinable --
Exchange lacks commercial substance --
Concept review exercise: Exchanges --
Part C: Self-constructed assets and research and development --
Self-constructed assets --
Overhead allocation --
Interest capitalization --
Research and development (R & D) --
Appendix 10: Oil and gas accounting --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 11: Operational assets: utilization and impairment --
Part A: Depreciation, depletion, and amortization --
Cost allocation-an overview --
Measuring cost allocation --
Service life --
Allocation base --
Allocation method --
Depreciation of operational assets --
Time-based depreciation methods --
Activity-based depreciation methods --
Decision makers' perspective-selecting a depreciation method --
Concept review exercise: Depreciation methods --
Group and composite depreciation methods --
Depletion of natural resources --
Amortization of intangible assets --
Intangible assets subject to amortization --
Intangible assets not subject to amortization --
Part B: Additional issues --
Partial periods --
Concept review exercise: Depletion and amortization --
Changes in estimates --
Change in depreciation, amortization, or depletion method --
Error correction --
Impairment of value --
Operational assets to be held and used --
Operational assets to be sold --
Impairment losses and earnings quality --
Part C: Subsequent expenditures --
Expenditures subsequent to acquisition --
Repairs and maintenance --
Additions --
Improvements --
Rearrangements --
Costs of defending intangible rights --
Appendix 11A: Comparison with MACRS (tax depreciation) --
Appendix 11B: Retirement and replacement methods of depreciation --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 11-1 --
Section 3: Financial Instruments And Liabilities --
12: Investments --
Part A: Investor lacks significant influence --
Securities to be held to maturity --
Trading securities --
Securities available-for-sale --
Impairment of investments --
Comparison of HTM, TS, and AFS approaches --
Transfers between reporting categories --
Fair value options --
Concept review exercise: Various investment securities --
Financial statement presentation and disclosure --
Part B: Investor has significant influence --
How the equity method relates to consolidated financial statements --
What is significant influence? --
Single entity concept --
Further adjustments --
Reporting the investment --
What if conditions change? --
If an equity method investment is sold --
Comparison of fair value and equity methods --
Fair value option --
Concept review exercise: Equity method --
Decision makers' perspective --
Financial instruments and investments derivatives --
Appendix 12A: Other investments (special purpose funds, investments in life insurance policies) --
Appendix 12B: Impairment of receivable due to a troubled debt restructuring --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 12-1--
13: Current liabilities and contingencies --
Part A: Current liabilities --
Characteristics of liabilities --
What is a current liability? --
Open accounts and notes --
Accounts payable and trade notes payable --
Short-term notes payable --
Commercial paper --
Accrued liabilities --
Accrued interest payable --
Salaries, commissions, and bonuses --
Liabilities from advance collections --
Deposits and advances from customers --
Collections for third parties --
Closer look at the current and noncurrent classification --
Current maturities of long-term debt --
Obligations callable by the creditor --
When short-term obligations are expected to be refinanced --
Concept review exercise: Current liabilities --
Part B: Contingencies --
Loss contingencies --
Product warranties and guarantees --
Premiums --
Litigation claims --
Subsequent events --
Unasserted claims and assessments --
Gain contingencies --
Concept review exercise: Contingencies --
Decision makers' perspective --
Appendix 13: Pay-roll related liabilities --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 14: Bonds and long-term notes --
Nature of long-term debt --
Part A: Bonds --
Bond indenture --
Recording bonds at issuance --
Determining the selling price --
Determining interest-effective interest method --
Zero-coupon bonds --
Bonds sold at a premium --
When financial statements are prepared between interest dates --
Straight-line method-a practical expediency --
Concept review exercise: Issuing bonds and recording interest --
Debt issue costs --
Option to report liabilities at fair value --
Determining fair value --
Reporting changes in fair value --
Mix and match --
Part B: Long-term notes --
Note issued for cash --
Note exchanged for assets or services --
Installment notes --
Financial statement disclosures --
Decision makers' perspective --
Concept review exercise: Note with an unrealistic interest rate --
Part C: Debt retired early, convertible into stock, or providing an option to buy stock --
Early extinguishment of debt --
Convertible bonds --
When the conversion option is exercised --
Induced conversion --
Bonds with detachable warrants --
Concept review exercise: Issuance and early extinguishment of debt --
Appendix 14A: Bonds issued between interest dates --
Appendix 14B: Troubled debt restructuring --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 14-1 --
15: Leases --
Part A: Accounting by the lessor and lessee --
Decision makers' perspective-advantages of leasing --
Capital leases and installment notes compared --
Lease classification --
Classification criteria --
Additional lessor conditions --
Operating leases --
Advance payments --
Leasehold improvements --
Nonoperating leases-lessee and lessor --
Depreciation --
Accrued interest --
Concept review exercise: Direct financing lease --
Sales-type leases --
Part B: Residual value and bargain purchase options --
Residual value --
Who gets the residual value? --
When the residual value is guaranteed by the lessee --
When the residual value is not guaranteed --
Bargain purchase options --
When a BPO is exercisable before the end of the lease term --
Part C: Other lease accounting issues --
Executory costs --
Discount rate --
When the lessee's incremental borrowing rate is less than the lessor's implicit rate --
When the lessor's implicit rate is unknown --
Lessor's initial direct costs --
Contingent rentals --
Brief summary --
Lease disclosures --
Decision makers' perspective-financial statement impact --
Balance sheet and income statement --
Statement of cash flow impact --
Concept review exercise: Various lease accounting issues --
Part D: Special leasing arrangements --
Sale-leaseback arrangements --
Capital leases --
Operating leases --
Losses on sale-leasebacks --
Real estate leases --
Leases of land only --
Leases of land and building --
Leases of only part of a building --
Leveraged leases --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 15-1. 16: Accounting for income taxes --
Part A: Deferred tax assets and deferred tax liabilities --
Conceptual underpinning --
Temporary differences --
Deferred tax liabilities --
FASB's balance sheet approach --
Types of temporary differences --
Deferred tax assets --
Valuation allowance --
Nontemporary differences --
Concept review exercise: Temporary and permanent differences --
Part B: Other tax accounting issues --
Tax rate considerations --
When enacted tax rates differ --
Changes in tax laws or rates --
Multiple temporary differences --
Net operating losses --
Operating loss carryforward --
Operating loss carryback --
Financial statement presentation --
Balance sheet classification --
Disclosure notes --
Coping with uncertainty in income taxes --
Intraperiod tax allocation --
Conceptual concerns --
Decision makers' perspective --
Concept review exercise: Multiple differences and operating loss --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 16-1 --
17: Pensions and other postretirement benefits --
Part A: Nature of pension plans --
Defined contribution pension plans --
Defined benefit pension plans --
Pension expense-an overview --
Part B: Pension obligation and plan assets --
Pension obligation --
Vested benefit obligation --
Accumulated benefit obligation --
Projected benefit obligation --
Illustration expanded to consider the entire employee pool --
Pension plan assets --
Reporting the funded status of the pension plan --
Part C: Determining pension expense --
Relationship between pension expense and changes in the PBO and plan assets --
Components of pension expense --
Income smoothing --
Part D: Reporting issues --
Recording gains and losses --
Recording the pension expense --
Recording the funding of plan assets --
Comprehensive income --
Income tax considerations --
Putting the pieces together --
Decision makers' perspective --
Settlement or curtailment of pension plans --
Concept review exercise: Pension plans --
Part E: Postretirement benefits other than pensions --
What is postretirement benefit plan? --
Postretirement health benefits and pension benefits compared --
Determining the net cost of benefits --
Postretirement benefit obligation --
Measuring the obligation --
Attribution --
Accounting for postretirement benefit plans other than pensions --
Comprehensive illustration --
Decision makers' perspective --
Concept review exercise: Other postretirement benefits --
Appendix 17: Service method of allocating prior service cost --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 17-1. 18: Shareholders' equity --
Part A: Nature of shareholders' equity --
Financial reporting overview --
Retained earnings --
Accumulated other comprehensive income --
Treasury stock --
Corporate organization --
Limited liability --
Ease of raising capital --
Disadvantages --
Types of corporations --
Hybrid organizations --
Model Business Corporation Act --
Part B: Paid-in capital --
Fundamental share rights --
Distinguishing classes of shares --
Typical rights of preferred shares --
Is it equity or is it debt? --
Concept of par value --
Accounting for the issuance of shares --
Shares issued for cash --
Shares issued for noncash consideration --
More than one security issued for a single price --
Share issue costs --
Concept review exercise: Expansion of corporate capital --
Share buybacks --
Decision makers' perspective --
Shares of formally retired or viewed as treasury stock --
Accounting for retired shares --
Accounting for treasury stock --
Resale of shares --
Concept review exercise: Treasury stock --
Part C: Retained earnings --
Characteristics of retained earnings --
Dividends --
Liquidating dividend --
Retained earnings restrictions --
Cash dividends --
Property dividends --
Stock dividends and splits --
Stock dividends --
Stock splits --
Stock splits effected in the form of stock dividends (large stock dividends) --
Decision makers' perspective --
Concept review exercise: Changes in retained earnings --
Appendix 18: Quasi --
Reorganizations --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 18-1 --
Section 4: Additional Financial Reporting Issues --
19: Share-based compensation and earnings per share --
Part A: Share-based compensation --
Stock award plans --
Stock option plans --
Expense-the great debate --
Recognizing the fair value of options --
When options are exercised --
When unexercised options expire --
Plans with performance or market conditions --
Employee share purchase plans --
Decision makers' perspective --
Concept review exercise: Share-based compensation plans --
Part B: Earnings per share --
Basic earnings per share --
Issuance of new shares --
Stock dividends and stock splits --
Reacquired shares --
Earnings available to common shareholders --
Diluted earnings per share --
Potential common shares --
Options, rights, warrants --
Convertible securities --
Antidilutive securities --
Options, warrants, rights --
Convertible securities --
Order of entry for multiple convertible securities --
Concept review exercise: Basic and diluted EPS --
Additional EPS issues --
Contingently issuable shares --
Summary of the effect of potential common shares on earnings per share --
Actual conversions --
Financial statement presentation of earnings per share data --
Decision makers' perspective --
Concept review exercise: Additional EPS issues --
Appendix 19A: Option-pricing theory --
Appendix 19B: Stock appreciation rights --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 19-1 --
20: Accounting changes and error corrections --
Part A: Accounting changes --
Change in accounting principle --
Decisions makers' perspective-motivation for accounting choices --
Retrospective approach: most changes in accounting principle --
Prospective approach --
Change in accounting estimate --
Changing depreciation, amortization, and depletion methods --
Change in reporting entity --
Error correction --
Concept review exercise: Accounting changes --
Part B: Correction of accounting errors --
Prior period adjustments --
Error correction illustrated --
Error discovered in the same reporting period that it occurred --
Error affecting previous financial statements, but not net income --
Error affecting a prior year's net income --
Concept review exercise: Correction of errors --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
21: Statement of cash flows revisited --
Part A: Content and value of the statement of cash flows --
Decision makers' perspective-usefulness of cash flow information --
Cash inflows and outflows --
Role of the statement of cash flows --
Cash and cash equivalents --
Primary elements of the statement of cash flows --
Preparation of the statement of cash flows --
Part B: Preparing an SCF: the direct method of reporting cash flows from operating activities --
Using a spreadsheet --
Income statement accounts --
Balance sheet accounts --
Concept review exercise: Comprehensive review --
Part C: Preparing an SCF: the indirect method of reporting cash flows from operating activities --
Getting there through the back door --
Components of net income that do not increase or decrease cash --
Components of net income that do increase or decrease cash --
Comparison with the direct method --
Reconciliation of net income to cash flows from operating activities --
Decision makers' perspective-cash flow ratios --
Appendix 21A: Spreadsheet for the indirect method --
Appendix 21B: T-account method of preparing the statement of cash flows --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 21-1 --
Appendix A: Derivatives --
Glossary --
Photo credits --
Index --
Present and future value tables.
Product Description: Rated the most satisfying textbook by students in independent research, Spiceland/Sepe/Nelson/Tomassini's "Intermediate Accounting, Fifth 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/Tomassini 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 new iPod content for the fifth edition. Coach, 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, too, is 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 keeping current. The fifth 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.
9780073526874 (combined edition : alk. paper) 0073526878 (combined edition : alk. paper)
Accounting.
657.044 / I
Rev. ed. of: Intermediate accounting / J. David Spiceland, James F. Sepe, Lawrence A. Tomassini. 4th ed. Includes index.
Section 1: Role Of Accounting As An Information System --
1: Environment and theoretical structure of financial accounting --
Part A: Financial accounting environment --
Economic environment and financial reporting --
Investment credit decision-a cash flow perspective --
Cash versus accrual accounting --
Development of financial accounting and reporting standards --
Historical perspective and standards --
Establishment of accounting standards-a political process --
Our global marketplace --
Role of the auditor --
Financial reporting reform --
Move away from rules-based standards? --
Ethics in accounting --
Ethics and professionalism --
Analytical model for ethical decisions --
Part B: Conceptual framework --
Objectives of financial reporting --
Qualitive characteristics of accounting information --
Primary qualitative characteristics --
Secondary qualitative characteristics --
Practical boundaries (constraints) to achieving desired qualitative characteristics --
Cost effectiveness --
Materiality --
Conservation --
Elements of financial statements --
Recognition and measurement concepts --
Recognition --
Measurement --
Underlying assumptions --
Accounting principles --
Evolution of accounting principles --
Asset/liability approach --
Move toward fair value --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Broaden your perspective --
2: Review of the accounting process --
Basic model --
Accounting equation --
Account relationships --
Accounting processing cycle --
Concept review exercise: Journal entries for external transactions --
Adjusting entries --
Prepayments --
Accruals --
Estimates --
Concept review exercise: Adjusting entries --
Preparing the financial statements --
Income statement --
Balance sheet --
Statement of cash flows --
Statement of shareholder's equity --
Closing process --
Concept review exercise: Financial statement preparation and closing --
Conversion from cash basis to accrual basis --
Appendix 2A: Use of a worksheet --
Appendix 2B: Reversing entries --
Appendix 2C: Subsidiary ledgers and special journals --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
3: Balance sheet and financial disclosures --
Part A: Balance sheet --
Usefulness and limitations --
Classifications --
Assets --
Liabilities --
Shareholders' equity --
Concept review exercise: Balance sheet classification --
Part B: Financial disclosures --
Disclosure notes --
Summary of significant accounting policies --
Subsequent events --
Noteworthy events and transactions --
Management discussion and analysis --
Management's responsibilities --
Auditors' report --
Compensation of directors and top executives --
Part C: Risk analysis --
Using financial statement information --
Liquidity ratios --
Financing ratios --
Appendix 3: Reporting segment information --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 4: Income statement and statement of cash flows --
Part A: Income statement and comprehensive income --
Income from continuing operations --
Revenues, expenses, gains, and losses --
Income tax expense --
Operating versus nonoperating income --
Income statement formats --
Earnings quality --
Manipulating income and income smoothing --
Operating income and earnings quality --
Nonoperating income and earnings quality --
Separately reported items --
Intraperiod income tax allocation --
Discontinued operations --
Extraordinary items --
Unusual or infrequent items --
Accounting changes --
Change in accounting principle --
Change in depreciation, amortization, or depletion method --
Change in accounting estimate --
Change in reporting entity --
Correction of accounting errors --
Prior period adjustments --
Earnings per share disclosures --
Comprehensive income --
Other comprehensive income --
Flexibility in reporting --
Accumulated other comprehensive income --
Concept review exercise: Income statement presentation --
Part B: Statement of cash flows --
Usefulness of the statement of cash flows --
Classifying cash flows --
Operating activities --
Investing activities --
Financing activities --
Noncash investing and financing activities --
Concept review exercise: Statement of cash flows --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 4-1 --
5: Income measurement and profitability analysis --
Part A: Revenue recognition --
Completion of the earnings process within a single reporting period --
When collectability is reasonably certain --
Significant uncertainty of collectability --
Concept review exercise: Installment sales --
Completion of the earnings process over multiple reporting periods --
Service revenue earned over time --
Long-term contracts --
Comparison of the two methods --
Concept review exercise: Long-term construction contracts --
Industry-specific revenue issues --
Software and other multiple-deliverable arrangements --
Franchise sales --
Part B: Profitability analysis --
Activity ratios --
Profitability ratios --
Profitability analysis-an illustration --
Appendix 5: Interim reporting --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 5-1 --
6: Time value of money concepts --
Part A: Basic concepts --
Time value of money --
Simple versus compound interest --
Valuing a single cash flow amount --
Future value of a single amount --
Present value of a single amount --
Solving for other values when FV and PV are known --
Concept review exercise: Valuing a single cash flow amount --
Preview of accounting applications of present value techniques-single cash amount --
Expected cash flow approach --
Part B: Basic annuities --
Future value of an annuity --
Future value of an ordinary annuity --
Future value of an annuity due --
Present value of an annuity --
Present value of an ordinary annuity --
Present value of an annuity due --
Present value of a deferred annuity --
Financial calculators and excel --
Solving for unknown values in present value situations --
Concept review exercise: Annuities --
Preview of accounting applications of present value techniques-annuities --
Valuation of long-term bonds --
Valuation of long-term leases --
Valuation of pension obligations --
Summary of time value of money concepts --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. Section 2: Economic Resources --
7: Cash and receivables --
Part A: Cash and cash equivalents --
Internal control --
Internal control procedures-cash receipts --
Internal control procedures-cash disbursements --
Restricted cash and compensating balances --
Decision makers' perspective --
Part B: Current receivables --
Accounts receivable --
Initial valuation of accounts receivable --
Subsequent valuation of accounts receivable --
Concept review exercise: Uncollectible accounts receivable --
Notes receivable --
Interest-bearing notes --
Noninterest-bearing notes --
Subsequent valuation of notes receivable --
Financing with receivables --
Secured borrowing --
Sale of receivables --
Discounting a note --
Concept review exercise: Financing with receivables --
Decision makers' perspective --
Appendix 7: Cash controls --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
8: Inventories: measurement --
Part A: Recording and measuring inventory --
Types of inventory --
Merchandising inventory --
Manufacturing inventories --
Perpetual inventory system --
Periodic inventory system --
Comparison of the perpetual and periodic inventory systems --
What is included in inventory? --
Physical quantities included in inventory --
Expenditures included in inventory --
Inventory cost flow assumptions --
Specific identification --
Average cost --
First-In, First-Out (FIFO) --
Last-In, Last-Out (LILO) --
Comparison of cost flow methods --
Decision makers' perspective-factors influencing method choice --
Concept review exercise: Inventory cost flow methods --
Decision makers' perspective --
Inventory management --
Earnings quality --
Part B: Methods of simplifying LIFO --
LIFO inventory pools --
Dollar-value LIFO --
Advantages of DVL --
Cost indexes --
DVL inventory estimation technique --
Concept review exercise: Dollar-value LIFO --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
9: Inventories: additional issues --
Part A: Reporting-lower of cost or market --
Determining market value --
Applying lower of cost or market --
Adjusting cost to market --
Concept review exercise: Lower of cost or market --
Part B: Inventory estimation techniques --
Gross profit method --
Word of caution --
Retail inventory method --
Retail terminology --
Cost flow methods --
Other issues pertaining to the retail method --
Concept review exercise: Retail inventory method --
Part C: Dollar-value LIFO retail --
Concept review exercise: Dollar-value LIFO retail method --
Part D: Change in inventory method and inventory errors --
Change in inventory method --
Most inventory changes --
Change to the LIFO method --
Inventory errors --
When the inventory error is discovered the following year --
When the inventory error is discovered subsequent to the following year --
Concept review exercise: Inventory errors --
Earnings quality --
Appendix 9: Purchase commitments --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 9-1 --
CPA simulation 9-2 --
10: Operational assets: acquisition and disposition --
Part A: Valuation at acquisition --
Types of operational assets --
Costs to be capitalized --
Property, plant, and equipment --
Intangible assets --
Lump-sum purchases --
Noncash acquisitions --
Deferred payments --
Issuance of equity securities --
Donated assets --
Decision makers' perspective --
Part B: Dispositions and exchanges --
Dispositions --
Exchanges --
Fair value not determinable --
Exchange lacks commercial substance --
Concept review exercise: Exchanges --
Part C: Self-constructed assets and research and development --
Self-constructed assets --
Overhead allocation --
Interest capitalization --
Research and development (R & D) --
Appendix 10: Oil and gas accounting --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 11: Operational assets: utilization and impairment --
Part A: Depreciation, depletion, and amortization --
Cost allocation-an overview --
Measuring cost allocation --
Service life --
Allocation base --
Allocation method --
Depreciation of operational assets --
Time-based depreciation methods --
Activity-based depreciation methods --
Decision makers' perspective-selecting a depreciation method --
Concept review exercise: Depreciation methods --
Group and composite depreciation methods --
Depletion of natural resources --
Amortization of intangible assets --
Intangible assets subject to amortization --
Intangible assets not subject to amortization --
Part B: Additional issues --
Partial periods --
Concept review exercise: Depletion and amortization --
Changes in estimates --
Change in depreciation, amortization, or depletion method --
Error correction --
Impairment of value --
Operational assets to be held and used --
Operational assets to be sold --
Impairment losses and earnings quality --
Part C: Subsequent expenditures --
Expenditures subsequent to acquisition --
Repairs and maintenance --
Additions --
Improvements --
Rearrangements --
Costs of defending intangible rights --
Appendix 11A: Comparison with MACRS (tax depreciation) --
Appendix 11B: Retirement and replacement methods of depreciation --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 11-1 --
Section 3: Financial Instruments And Liabilities --
12: Investments --
Part A: Investor lacks significant influence --
Securities to be held to maturity --
Trading securities --
Securities available-for-sale --
Impairment of investments --
Comparison of HTM, TS, and AFS approaches --
Transfers between reporting categories --
Fair value options --
Concept review exercise: Various investment securities --
Financial statement presentation and disclosure --
Part B: Investor has significant influence --
How the equity method relates to consolidated financial statements --
What is significant influence? --
Single entity concept --
Further adjustments --
Reporting the investment --
What if conditions change? --
If an equity method investment is sold --
Comparison of fair value and equity methods --
Fair value option --
Concept review exercise: Equity method --
Decision makers' perspective --
Financial instruments and investments derivatives --
Appendix 12A: Other investments (special purpose funds, investments in life insurance policies) --
Appendix 12B: Impairment of receivable due to a troubled debt restructuring --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 12-1--
13: Current liabilities and contingencies --
Part A: Current liabilities --
Characteristics of liabilities --
What is a current liability? --
Open accounts and notes --
Accounts payable and trade notes payable --
Short-term notes payable --
Commercial paper --
Accrued liabilities --
Accrued interest payable --
Salaries, commissions, and bonuses --
Liabilities from advance collections --
Deposits and advances from customers --
Collections for third parties --
Closer look at the current and noncurrent classification --
Current maturities of long-term debt --
Obligations callable by the creditor --
When short-term obligations are expected to be refinanced --
Concept review exercise: Current liabilities --
Part B: Contingencies --
Loss contingencies --
Product warranties and guarantees --
Premiums --
Litigation claims --
Subsequent events --
Unasserted claims and assessments --
Gain contingencies --
Concept review exercise: Contingencies --
Decision makers' perspective --
Appendix 13: Pay-roll related liabilities --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective. 14: Bonds and long-term notes --
Nature of long-term debt --
Part A: Bonds --
Bond indenture --
Recording bonds at issuance --
Determining the selling price --
Determining interest-effective interest method --
Zero-coupon bonds --
Bonds sold at a premium --
When financial statements are prepared between interest dates --
Straight-line method-a practical expediency --
Concept review exercise: Issuing bonds and recording interest --
Debt issue costs --
Option to report liabilities at fair value --
Determining fair value --
Reporting changes in fair value --
Mix and match --
Part B: Long-term notes --
Note issued for cash --
Note exchanged for assets or services --
Installment notes --
Financial statement disclosures --
Decision makers' perspective --
Concept review exercise: Note with an unrealistic interest rate --
Part C: Debt retired early, convertible into stock, or providing an option to buy stock --
Early extinguishment of debt --
Convertible bonds --
When the conversion option is exercised --
Induced conversion --
Bonds with detachable warrants --
Concept review exercise: Issuance and early extinguishment of debt --
Appendix 14A: Bonds issued between interest dates --
Appendix 14B: Troubled debt restructuring --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 14-1 --
15: Leases --
Part A: Accounting by the lessor and lessee --
Decision makers' perspective-advantages of leasing --
Capital leases and installment notes compared --
Lease classification --
Classification criteria --
Additional lessor conditions --
Operating leases --
Advance payments --
Leasehold improvements --
Nonoperating leases-lessee and lessor --
Depreciation --
Accrued interest --
Concept review exercise: Direct financing lease --
Sales-type leases --
Part B: Residual value and bargain purchase options --
Residual value --
Who gets the residual value? --
When the residual value is guaranteed by the lessee --
When the residual value is not guaranteed --
Bargain purchase options --
When a BPO is exercisable before the end of the lease term --
Part C: Other lease accounting issues --
Executory costs --
Discount rate --
When the lessee's incremental borrowing rate is less than the lessor's implicit rate --
When the lessor's implicit rate is unknown --
Lessor's initial direct costs --
Contingent rentals --
Brief summary --
Lease disclosures --
Decision makers' perspective-financial statement impact --
Balance sheet and income statement --
Statement of cash flow impact --
Concept review exercise: Various lease accounting issues --
Part D: Special leasing arrangements --
Sale-leaseback arrangements --
Capital leases --
Operating leases --
Losses on sale-leasebacks --
Real estate leases --
Leases of land only --
Leases of land and building --
Leases of only part of a building --
Leveraged leases --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 15-1. 16: Accounting for income taxes --
Part A: Deferred tax assets and deferred tax liabilities --
Conceptual underpinning --
Temporary differences --
Deferred tax liabilities --
FASB's balance sheet approach --
Types of temporary differences --
Deferred tax assets --
Valuation allowance --
Nontemporary differences --
Concept review exercise: Temporary and permanent differences --
Part B: Other tax accounting issues --
Tax rate considerations --
When enacted tax rates differ --
Changes in tax laws or rates --
Multiple temporary differences --
Net operating losses --
Operating loss carryforward --
Operating loss carryback --
Financial statement presentation --
Balance sheet classification --
Disclosure notes --
Coping with uncertainty in income taxes --
Intraperiod tax allocation --
Conceptual concerns --
Decision makers' perspective --
Concept review exercise: Multiple differences and operating loss --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 16-1 --
17: Pensions and other postretirement benefits --
Part A: Nature of pension plans --
Defined contribution pension plans --
Defined benefit pension plans --
Pension expense-an overview --
Part B: Pension obligation and plan assets --
Pension obligation --
Vested benefit obligation --
Accumulated benefit obligation --
Projected benefit obligation --
Illustration expanded to consider the entire employee pool --
Pension plan assets --
Reporting the funded status of the pension plan --
Part C: Determining pension expense --
Relationship between pension expense and changes in the PBO and plan assets --
Components of pension expense --
Income smoothing --
Part D: Reporting issues --
Recording gains and losses --
Recording the pension expense --
Recording the funding of plan assets --
Comprehensive income --
Income tax considerations --
Putting the pieces together --
Decision makers' perspective --
Settlement or curtailment of pension plans --
Concept review exercise: Pension plans --
Part E: Postretirement benefits other than pensions --
What is postretirement benefit plan? --
Postretirement health benefits and pension benefits compared --
Determining the net cost of benefits --
Postretirement benefit obligation --
Measuring the obligation --
Attribution --
Accounting for postretirement benefit plans other than pensions --
Comprehensive illustration --
Decision makers' perspective --
Concept review exercise: Other postretirement benefits --
Appendix 17: Service method of allocating prior service cost --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 17-1. 18: Shareholders' equity --
Part A: Nature of shareholders' equity --
Financial reporting overview --
Retained earnings --
Accumulated other comprehensive income --
Treasury stock --
Corporate organization --
Limited liability --
Ease of raising capital --
Disadvantages --
Types of corporations --
Hybrid organizations --
Model Business Corporation Act --
Part B: Paid-in capital --
Fundamental share rights --
Distinguishing classes of shares --
Typical rights of preferred shares --
Is it equity or is it debt? --
Concept of par value --
Accounting for the issuance of shares --
Shares issued for cash --
Shares issued for noncash consideration --
More than one security issued for a single price --
Share issue costs --
Concept review exercise: Expansion of corporate capital --
Share buybacks --
Decision makers' perspective --
Shares of formally retired or viewed as treasury stock --
Accounting for retired shares --
Accounting for treasury stock --
Resale of shares --
Concept review exercise: Treasury stock --
Part C: Retained earnings --
Characteristics of retained earnings --
Dividends --
Liquidating dividend --
Retained earnings restrictions --
Cash dividends --
Property dividends --
Stock dividends and splits --
Stock dividends --
Stock splits --
Stock splits effected in the form of stock dividends (large stock dividends) --
Decision makers' perspective --
Concept review exercise: Changes in retained earnings --
Appendix 18: Quasi --
Reorganizations --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 18-1 --
Section 4: Additional Financial Reporting Issues --
19: Share-based compensation and earnings per share --
Part A: Share-based compensation --
Stock award plans --
Stock option plans --
Expense-the great debate --
Recognizing the fair value of options --
When options are exercised --
When unexercised options expire --
Plans with performance or market conditions --
Employee share purchase plans --
Decision makers' perspective --
Concept review exercise: Share-based compensation plans --
Part B: Earnings per share --
Basic earnings per share --
Issuance of new shares --
Stock dividends and stock splits --
Reacquired shares --
Earnings available to common shareholders --
Diluted earnings per share --
Potential common shares --
Options, rights, warrants --
Convertible securities --
Antidilutive securities --
Options, warrants, rights --
Convertible securities --
Order of entry for multiple convertible securities --
Concept review exercise: Basic and diluted EPS --
Additional EPS issues --
Contingently issuable shares --
Summary of the effect of potential common shares on earnings per share --
Actual conversions --
Financial statement presentation of earnings per share data --
Decision makers' perspective --
Concept review exercise: Additional EPS issues --
Appendix 19A: Option-pricing theory --
Appendix 19B: Stock appreciation rights --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 19-1 --
20: Accounting changes and error corrections --
Part A: Accounting changes --
Change in accounting principle --
Decisions makers' perspective-motivation for accounting choices --
Retrospective approach: most changes in accounting principle --
Prospective approach --
Change in accounting estimate --
Changing depreciation, amortization, and depletion methods --
Change in reporting entity --
Error correction --
Concept review exercise: Accounting changes --
Part B: Correction of accounting errors --
Prior period adjustments --
Error correction illustrated --
Error discovered in the same reporting period that it occurred --
Error affecting previous financial statements, but not net income --
Error affecting a prior year's net income --
Concept review exercise: Correction of errors --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
21: Statement of cash flows revisited --
Part A: Content and value of the statement of cash flows --
Decision makers' perspective-usefulness of cash flow information --
Cash inflows and outflows --
Role of the statement of cash flows --
Cash and cash equivalents --
Primary elements of the statement of cash flows --
Preparation of the statement of cash flows --
Part B: Preparing an SCF: the direct method of reporting cash flows from operating activities --
Using a spreadsheet --
Income statement accounts --
Balance sheet accounts --
Concept review exercise: Comprehensive review --
Part C: Preparing an SCF: the indirect method of reporting cash flows from operating activities --
Getting there through the back door --
Components of net income that do not increase or decrease cash --
Components of net income that do increase or decrease cash --
Comparison with the direct method --
Reconciliation of net income to cash flows from operating activities --
Decision makers' perspective-cash flow ratios --
Appendix 21A: Spreadsheet for the indirect method --
Appendix 21B: T-account method of preparing the statement of cash flows --
Questions for review of key topics --
Brief exercises --
Exercises --
CPA/CMA review questions --
Problems --
Broaden your perspective --
CPA simulation 21-1 --
Appendix A: Derivatives --
Glossary --
Photo credits --
Index --
Present and future value tables.
Product Description: Rated the most satisfying textbook by students in independent research, Spiceland/Sepe/Nelson/Tomassini's "Intermediate Accounting, Fifth 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/Tomassini 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 new iPod content for the fifth edition. Coach, 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, too, is 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 keeping current. The fifth 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.
9780073526874 (combined edition : alk. paper) 0073526878 (combined edition : alk. paper)
Accounting.
657.044 / I