Intermediate Accounting.pdf

Kieso, Weygandt and Warfield’s Intermediate Accounting continues to set the standard for intermediate accounting students and professionals in the field. The Fifteenth edition builds on this legacy through new innovative student focused pedagogy in the book itself and with online support.Kieso maintains the qualities for which the text is globally recognized, including its reputation for accuracy, comprehensiveness, accessibility, and quality problem material that best prepares students for success on the CPA exam. The Fifteenth edition offers the most up to date coverage of IFRS and US GAAP in a presentational format suited to the complex challenges of teaching intermediate in these changing times.The WileyPLUS homework and learning platform (access to WileyPLUS sold separately) is better than it has ever been for Kieso, with a multitude of new assessment items, multimedia resources, and enhanced functionality to ensure students will do real accounting and get real results. There have also never been so many options for accessing content, from several online only options, premium value print and digital formats, and custom versions designed to fit your needs perfectly.
Table of contents :
Cover......Page 1
Title Page......Page 5
Copyright......Page 6
Brief Contents......Page 7
Contents......Page 16
We Can Do Better......Page 28
Accounting and Capital Allocation......Page 30
Objective of Financial Reporting......Page 31
What Do the Numbers Mean? Don't Forget Stewardship......Page 32
Securities and Exchange Commission (SEC)......Page 33
American Institute of Certified Public Accountants (AICPA)......Page 35
Financial Accounting Standards Board (FASB)......Page 36
Generally Accepted Accounting Principles......Page 39
FASB Codification......Page 40
GAAP in a Political Environment......Page 42
The Expectations Gap......Page 43
Financial Reporting Challenges......Page 44
International Accounting Standards......Page 46
Conclusion......Page 47
FASB Codification......Page 49
IFRS Insights......Page 57
What Is It?......Page 66
Need for a Conceptual Framework......Page 68
Development of a Conceptual Framework......Page 69
Overview of the Conceptual Framework......Page 70
Qualitative Characteristics of Accounting Information......Page 71
What Do the Numbers Mean? Living in a Material World......Page 74
What Do the Numbers Mean? Show Me the Earnings!......Page 76
Basic Elements......Page 78
Third Level: Recognition and Measurement Concepts......Page 79
What Do the Numbers Mean? Whose Company Is It?......Page 80
Basic Principles of Accounting......Page 82
Cost Constraint......Page 87
Summary of the Structure......Page 89
FASB Codification......Page 91
IFRS Insights......Page 104
Needed: A Reliable Information System......Page 108
Basic Terminology......Page 110
Debits and Credits......Page 111
The Accounting Equation......Page 112
Financial Statements and Ownership Structure......Page 114
Identifying and Recording Transactions and Other Events......Page 115
Journalizing......Page 117
Posting......Page 118
Adjusting Entries......Page 122
What Do the Numbers Mean? Am I Covered?......Page 133
Preparing Financial Statements......Page 134
Closing......Page 136
Reversing Entries-An Optional Step......Page 139
Income Statement......Page 140
Balance Sheet......Page 141
Closing Entries......Page 143
APPENDIX 3A Cash-Basis Accounting versus Accrual-Basis Accounting......Page 144
Conversion from Cash Basis to Accrual Basis......Page 146
Service Revenue Computation......Page 147
Operating Expense Computation......Page 148
Theoretical Weaknesses of the Cash Basis......Page 149
Illustration of Reversing Entries-Accruals......Page 150
Illustration of Reversing Entries-Deferrals......Page 151
Summary of Reversing Entries......Page 152
Adjustments Entered on the Worksheet......Page 153
Income Statement and Balance Sheet Columns......Page 155
Preparing Financial Statements from a Worksheet......Page 156
IFRS Insights......Page 179
Financial Statements Are Changing......Page 184
Limitations of the Income Statement......Page 186
Quality of Earnings......Page 187
Elements of the Income Statement......Page 188
Intermediate Components of the Income Statement......Page 190
Condensed Income Statements......Page 192
Single-Step Income Statements......Page 193
Reporting Various Income Items......Page 194
Unusual Gains and Losses......Page 195
Discontinued Operations......Page 196
Extraordinary Items......Page 199
What Do the Numbers Mean? Extraordinary Times......Page 201
Summary of Various Income Items......Page 202
Earnings per Share......Page 203
Accounting Changes and Errors......Page 205
Retained Earnings Statement......Page 207
Comprehensive Income......Page 208
Evolving Issue Income Reporting......Page 211
FASB Codification......Page 214
IFRS Insights......Page 231
Hey, It Doesn't Balance!......Page 238
Limitations of the Balance Sheet......Page 240
Classification in the Balance Sheet......Page 241
What Do the Numbers Mean? "Show Me the Assets!"......Page 250
Balance Sheet Format......Page 252
Purpose of the Statement of Cash Flows......Page 254
Content and Format of the Statement of Cash Flows......Page 255
Overview of the Preparation of the Statement of Cash Flows......Page 256
Usefulness of the Statement of Cash Flows......Page 258
What Do the Numbers Mean? "There Ought to Be a Law"......Page 261
Supplemental Disclosures......Page 262
What Do the Numbers Mean? What About Your Commitments?......Page 264
Techniques of Disclosure......Page 265
Evolving Issue Balance Sheet Reporting: Gross or Net?......Page 269
Using Ratios to Analyze Performance......Page 271
APPENDIX 5B Specimen Financial Statements: The Procter & Gamble Company......Page 273
FASB Codification......Page 281
IFRS Insights......Page 303
How Do I Measure That?......Page 312
Applications of Time Value Concepts......Page 314
The Nature of Interest......Page 315
Compound Interest......Page 316
What Do the Numbers Mean? A Pretty Good Start......Page 317
Single-Sum Problems......Page 320
Future Value of a Single Sum......Page 321
Present Value of a Single Sum......Page 322
Solving for Other Unknowns in Single-Sum Problems......Page 324
Annuities......Page 325
Future Value of an Ordinary Annuity......Page 326
What Do the Numbers Mean? Don't Wait to Make That Contribution!......Page 328
Future Value of an Annuity Due......Page 329
Examples of Future Value of Annuity Problems......Page 330
Present Value of an Ordinary Annuity......Page 332
Present Value of an Annuity Due......Page 334
Examples of Present Value of Annuity Problems......Page 335
Deferred Annuities......Page 337
Valuation of Long-Term Bonds......Page 339
Effective-Interest Method of Amortization of Bond Discount or Premium......Page 340
Present Value Measurement......Page 341
Example of Expected Cash Flow......Page 342
FASB Codification......Page 346
Please Release Me?......Page 370
Reporting Cash......Page 372
Summary of Cash-Related Items......Page 374
Accounts Receivable......Page 375
Recognition of Accounts Receivable......Page 377
Valuation of Accounts Receivable......Page 378
What Do the Numbers Mean? I'm Still Waiting......Page 384
Recognition of Notes Receivable......Page 385
Valuation of Notes Receivable......Page 389
Special Issues......Page 390
Disposition of Accounts and Notes Receivable......Page 391
What Do the Numbers Mean? Return to Lender......Page 397
Presentation and Analysis......Page 398
Evolving Issue A Cure for "Too Little, Too Late"?......Page 400
Using Bank Accounts......Page 402
The Imprest Petty Cash System......Page 403
Reconciliation of Bank Balances......Page 404
APPENDIX 7B Impairments of Receivables......Page 407
Impairment Loss Example......Page 408
What Do the Numbers Mean? Lost in Translation......Page 409
FASB Codification......Page 411
IFRS Insights......Page 434
To Switch or Not to Switch......Page 440
Classification......Page 442
Inventory Cost Flow......Page 443
Inventory Control......Page 445
Basic Issues in Inventory Valuation......Page 446
Goods in Transit......Page 447
Special Sales Agreements......Page 448
Effect of Inventory Errors......Page 449
Costs Included in Inventory......Page 451
Treatment of Purchase Discounts......Page 452
What Do the Numbers Mean? You May Need a Map......Page 453
Specific Identification......Page 454
Average-Cost......Page 455
First-In, First-Out (FIFO)......Page 456
Last-In, First-Out (LIFO)......Page 457
LIFO Reserve......Page 458
What Do the Numbers Mean? Comparing Apples to Apples......Page 459
LIFO Liquidation......Page 460
Dollar-Value LIFO......Page 461
Comparison of LIFO Approaches......Page 466
Major Advantages of LIFO......Page 467
Major Disadvantages of LIFO......Page 468
Basis for Selection of Inventory Method......Page 469
Inventory Valuation Methods-Summary Analysis......Page 471
FASB Codification......Page 475
Not What It Seems to Be......Page 498
Lower-of-Cost-or-Market......Page 500
Ceiling and Floor......Page 501
How Lower-of-Cost-or-Market Works......Page 502
Methods of Applying Lower-of-Cost-or-Market......Page 503
Recording "Market" Instead of Cost......Page 504
Use of an Allowance......Page 505
What Do the Numbers Mean? "Put It in Reverse"......Page 506
Valuation at Net Realizable Value......Page 507
Valuation Using Relative Sales Value......Page 508
Purchase Commitments-A Special Problem......Page 509
The Gross Profit Method of Estimating Inventory......Page 511
Computation of Gross Profit Percentage......Page 512
Retail Inventory Method......Page 514
Retail-Method Concepts......Page 515
Retail Inventory Method with Markups and Markdowns-Conventional Method......Page 516
Evaluation of Retail Inventory Method......Page 519
Presentation of Inventories......Page 520
Analysis of Inventories......Page 521
Stable Prices-LIFO Retail Method......Page 523
Fluctuating Prices-Dollar-Value LIFO Retail Method......Page 524
Subsequent Adjustments Under Dollar-Value LIFO Retail......Page 526
Changing from Conventional Retail to LIFO......Page 527
FASB Codification......Page 530
IFRS Insights......Page 551
Watch Your Spending......Page 562
Acquisition of Property, Plant, and Equipment......Page 564
Cost of Buildings......Page 565
Self-Constructed Assets......Page 566
Interest Costs During Construction......Page 567
What Do the Numbers Mean? What's in Your Interest?......Page 572
Deferred-Payment Contracts......Page 573
Lump-Sum Purchases......Page 574
Issuance of Stock......Page 575
Exchanges of Nonmonetary Assets......Page 576
Accounting for Contributions......Page 581
Costs Subsequent to Acquisition......Page 582
What Do the Numbers Mean? Disconnected......Page 583
Improvements and Replacements......Page 584
Repairs......Page 585
Sale of Plant Assets......Page 586
Miscellaneous Problems......Page 587
FASB Codification......Page 590
Here Come the Write-Offs......Page 614
Factors Involved in the Depreciation Process......Page 616
Methods of Depreciation......Page 618
Special Depreciation Methods......Page 621
What Do the Numbers Mean? Decelerating Depreciation......Page 623
Special Depreciation Issues......Page 624
Recognizing Impairments......Page 627
Measuring Impairments......Page 628
Impairment of Assets to Be Disposed Of......Page 629
Depletion......Page 630
Establishing a Depletion Base......Page 631
Write-Off of Resource Cost......Page 632
Liquidating Dividends......Page 633
Continuing Controversy......Page 634
Presentation of Property, Plant, Equipment, and Natural Resources......Page 635
Analysis of Property, Plant, and Equipment......Page 637
Tax Lives (Recovery Periods)......Page 640
Example of MACRS......Page 641
Optional Straight-Line Method......Page 642
Tax versus Book Depreciation......Page 643
FASB Codification......Page 644
IFRS Insights......Page 663
Is This Sustainable?......Page 674
Valuation......Page 676
Amortization of Intangibles......Page 677
Marketing-Related Intangible Assets......Page 679
Customer-Related Intangible Assets......Page 680
Contract-Related Intangible Assets......Page 681
Technology-Related Intangible Assets......Page 682
What Do the Numbers Mean? Patent Battles......Page 683
Goodwill......Page 684
Impairment of Indefinite-Life Intangibles Other Than Goodwill......Page 688
Impairment of Goodwill......Page 689
Impairment Summary......Page 690
Research and Development Costs......Page 691
Identifying R&D Activities......Page 692
Costs Similar to R&D Costs......Page 693
Presentation of Intangible Assets......Page 696
Presentation of Research and Development Costs......Page 698
Evolving Issue Recognition of R&D and Internally Generated Intangibles......Page 699
FASB Codification......Page 702
IFRS Insights......Page 719
Now You See It, Now You Don't......Page 726
Current Liabilities......Page 728
Notes Payable......Page 729
Short-Term Obligations Expected to Be Refinanced......Page 731
Customer Advances and Deposits......Page 733
What Do the Numbers Mean? Microsoft's Liabilities-Good or Bad?......Page 734
Income Taxes Payable......Page 735
Employee-Related Liabilities......Page 736
Gain Contingencies......Page 741
Loss Contingencies......Page 742
What Do the Numbers Mean? Frequent Flyers......Page 748
Presentation of Current Liabilities......Page 752
Presentation of Contingencies......Page 754
Analysis of Current Liabilities......Page 755
Evolving Issue Greenhouse Gases: Let's Be Standard-Setters......Page 756
FASB Codification......Page 759
IFRS Insights......Page 779
Going Long......Page 788
Types of Bonds......Page 790
What Do the Numbers Mean? All About Bonds......Page 791
Valuation of Bonds Payable-Discount and Premium......Page 792
Bonds Issued at Discount or Premium on Interest Date......Page 794
Effective-Interest Method......Page 796
Costs of Issuing Bonds......Page 800
Extinguishment of Debt......Page 801
Long-Term Notes Payable......Page 802
Notes Not Issued at Face Value......Page 803
Special Notes Payable Situations......Page 805
Fair Value Option......Page 808
Off-Balance-Sheet Financing......Page 809
What Do the Numbers Mean? Obligated......Page 811
Presentation and Analysis of Long-Term Debt......Page 812
Evolving Issue Fair Value of Liabilities: Pick a Number, Any Number......Page 814
APPENDIX 14A Troubled-Debt Restructurings......Page 816
Granting of Equity Interest......Page 817
Example 1-No Gain for Debtor......Page 818
Example 2-Gain for Debtor......Page 821
Concluding Remarks......Page 822
FASB Codification......Page 824
IFRS Insights......Page 841
It's a Global Market......Page 846
What Do the Numbers Mean? 1209 North Orange Street......Page 848
Capital Stock or Share System......Page 849
Corporate Capital......Page 850
Issuance of Stock......Page 851
Reacquisition of Shares......Page 855
What Do the Numbers Mean? Buybacks-Good or Bad?......Page 856
Features of Preferred Stock......Page 860
Accounting for and Reporting Preferred Stock......Page 862
Financial Condition and Dividend Distributions......Page 863
Types of Dividends......Page 864
Stock Dividends and Stock Splits......Page 867
What Do the Numbers Mean? Splitsville......Page 870
Disclosure of Restrictions on Retained Earnings......Page 872
Presentation......Page 873
Analysis......Page 875
Dividend Preferences......Page 878
Book Value per Share......Page 879
FASB Codification......Page 882
IFRS Insights......Page 900
Kicking the Habit......Page 908
Accounting for Convertible Debt......Page 910
Convertible Preferred Stock......Page 912
Stock Warrants......Page 913
Evolving Issue Is That All Debt?......Page 916
Stock-Option Plans......Page 919
Restricted Stock......Page 920
Employee Stock-Purchase Plans......Page 922
Debate over Stock-Option Accounting......Page 923
Computing Earnings per Share......Page 925
Earnings per Share-Simple Capital Structure......Page 926
Earnings per Share-Complex Capital Structure......Page 930
What Do the Numbers Mean? Pro Forma EPS Confusion......Page 937
APPENDIX 16A Accounting for Stock-Appreciation Rights......Page 939
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