[eBook] [PDF] Fundamentals of Advanced Accounting, 8th Edition By Joe, Ben, Hoyle

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Cover Title Copyright Dedication About the Authors Fundamentals of Advanced Accounting 8e Stays Current as the Accounting Profession Changes Students Solve the Accounting Puzzle with 8th Edition... Features Connect Accounting for Fundamentals of Advanced Accounting, 8e Acknowledgments Connect Brief Contents Contents Chapter One: The Equity Method of Accounting for Investments Why Do Business Firms Invest in the Equity Shares of Other Business Firms? The Reporting of Investments in Corporate Equity Securities Fair-Value Method Cost Method (Investments in Equity Securities without Readily Determinable Fair Values) Consolidation of Financial Statements Equity Method Discussion Question: Did the Cost Method Invite Earnings Manipulation? Application of the Equity Method Criteria for Utilizing the Equity Method Accounting for an Investment—The Equity Method Equity Method Accounting Procedures Excess of Investment Cost over Book Value Acquired Discussion Question: Does the Equity Method Really Apply Here? The Amortization Process International Accounting Standard 28—Investments in Associates Equity Method—Additional Issues Reporting a Change to the Equity Method Reporting Investee’s Other Comprehensive Income and Irregular Items Reporting Investee Losses Reporting the Sale of an Equity Investment Deferral of Intra-Entity Gross Profits in Inventory Downstream Sales of Inventory Upstream Sales of Inventory Financial Reporting Effects and Equity Method Criticisms Equity Method Reporting Effects Criticisms of the Equity Method Fair-Value Reporting for Equity Method Investments Summary Chapter Two: Consolidation of Financial Information Expansion through Corporate Takeovers Reasons for Firms to Combine Amazon and Whole Foods Market Salesforce.com and MuleSoft Tesla and Grohmann Engineering Business Combinations, Control, and Consolidated Financial Reporting Business Combinations—Creating a Single Economic Entity Control—An Elusive Quality Consolidation of Financial Information Financial Reporting for Business Combinations The Acquisition Method Consideration Transferred for the Acquired Business Contingent Consideration: An Additional Element of Consideration Transferred Assets Acquired and Liabilities Assumed Goodwill, and Gains on Bargain Purchases Procedures for Consolidating Financial Information Acquisition Method When Dissolution Takes Place Related Costs of Business Combinations The Acquisition Method When Separate Incorporation Is Maintained Acquisition-Date Fair-Value Allocations—Additional Issues Intangibles Preexisting Goodwill on Acquired Firm’s Books Acquired In-Process Research and Development Convergence between U.S. and International Accounting Standards Discussion Question: What if an Acquired Entity is Not a Business? Summary Appendix A: Legacy Methods of Accounting for Business Combinations Appendix B: Pushdown Accounting Chapter Three: Consolidations—Subsequent to the Date of Acquisition Consolidation—The Effects Created by the Passage of Time Consolidated Net Income Determination The Parent’s Choice of Investment Accounting Investment Accounting by the Acquiring Company Internal Investment Accounting Alternatives—The Equity Method, Initial Value Method, and Partial Equity Method Discussion Question: How Does A Company Really Decide Which Investment Method to Apply? Subsequent Consolidation—Investment Recorded by the Equity Method Acquisition Made during the Current Year Determination of Consolidated Totals Consolidation Worksheet Consolidation Subsequent to Year of Acquisition—Equity Method Subsequent Consolidations—Investment Recorded Using Initial Value or Partial Equity Method Acquisition Made during the Current Year Consolidation Subsequent to Year of Acquisition—Initial Value and Partial Equity Methods Discussion Question Excess Fair Value Attributable to Subsidiary Long-Term Debt: Postacquisition Procedures Goodwill Impairment Assigning Goodwill to Reporting Units Qualitative Assessment Option Testing Goodwill for Impairment Illustration—Accounting and Reporting for a Goodwill Impairment Loss Comparisons with International Accounting Standards Amortization and Impairment of Other Intangibles Contingent Consideration—Postcombination Accounting for Contingent Consideration in Periods Subsequent to a Business Combination Summary Appendix: Private Company Accounting for Business Combinations Chapter Four: Consolidated Financial Statements and Outside Ownership Consolidated Financial Reporting in the Presence of a Noncontrolling Interest Subsidiary Acquisition-Date Fair Value in the Presence of a Noncontrolling Interest Discussion Question Control Premiums, Noncontrolling Interest Valuation, and Goodwill Allocating Consolidated Net Income to the Parent and Noncontrolling Interest Partial Ownership Consolidations (Acquisition Method) Illustration—Partial Acquisition with No Control Premium Illustration—Partial Acquisition with Control Premium Effects Created by Alternative Investment Methods Revenue and Expense Reporting for Midyear Acquisitions Consolidating Postacquisition Subsidiary Revenue and Expenses Acquisition Following an Equity Method Investment Step Acquisitions Control Achieved in Steps—Acquisition Method Example: Step Acquisition Resulting in Control—Acquisition Method Worksheet Consolidation for a Step Acquisition (Acquisition Method) Example: Step Acquisition Resulting after Control Is Obtained Discussion Question: Does GAAP Undervalue Post-Control Stock Acquisitions? Parent Company Sales of Subsidiary Stock—Acquisition Method Sale of Subsidiary Shares with Control Maintained Sale of Subsidiary Shares with Control Lost Cost-Flow Assumptions Accounting for Shares That Remain Comparisons with International Accounting Standards Summary Chapter Five: Consolidated Financial Statements—Intra-Entity Asset Transactions Intra-Entity Inventory Transfers The Sales and Purchases Accounts Intra-Entity Gross Profit—Year of Transfer (Year 1) Discussion Question: Earnings Management Intra-Entity Gross Profit—Year Following Transfer (Year 2) Intra-Entity Gross Profit—Effect on Noncontrolling Interest Intra-Entity Inventory Transfers Summarized Intra-Entity Inventory Transfers Illustrated: Parent Uses Equity Method Effects of Alternative Investment Methods on Consolidation Discussion Question: What Price Should We Charge Ourselves? Intra-Entity Land Transfers Accounting for Land Transactions Eliminating Intra-Entity Gains—Land Transfers Recognizing the Effect on Noncontrolling Interest—Land Transfers Intra-Entity Transfer of Depreciable Assets Deferral and Subsequent Recognition of Intra-Entity Gains Depreciable Asset Intra-Entity Transfers Illustrated Years Following Downstream Intra-Entity Depreciable Asset Transfers—Parent Uses Equity Method Effect on Noncontrolling Interest—Depreciable Asset Transfers Summary Chapter Six: Variable Interest Entities, Intra-Entity Debt, Consolidated Cash Flows, and Other Issues Consolidation of Variable Interest Entities What Is a VIE? Consolidation of Variable Interest Entities Procedures to Consolidate Variable Interest Entities Consolidation of a Primary Beneficiary and VIE Illustrated Comparisons with International Accounting Standards Intra-Entity Debt Transactions Acquisition of Affiliate’s Debt from an Outside Party Accounting for Intra-Entity Debt Transactions—Individual Financial Records Effects on Consolidation Process Assignment of Retirement Gain or Loss Intra-Entity Debt Transactions—Years Subsequent to Effective Retirement Discussion Question: Who Lost This $300,000? Subsidiary Preferred Stock Consolidated Statement of Cash Flows Acquisition Period Statement of Cash Flows Statement of Cash Flows in Periods Subsequent to Acquisition Consolidated Earnings per Share Subsidiary Stock Transactions Changes in Subsidiary Value—Stock Transactions Subsidiary Stock Transactions—Illustrated Summary Chapter Seven: Foreign Currency Transactions and Hedging Foreign Exchange Risk Foreign Exchange Markets Exchange Rate Mechanisms Foreign Exchange Rates Foreign Currency Forward Contracts Foreign Currency Options Foreign Currency Transactions Accounting Issue Balance Sheet Date before Date of Payment International Accounting Standard 21—The Effects of Changes in Foreign Exchange Rates Foreign Currency Borrowing Foreign Currency Loan Hedges of Foreign Exchange Risk Derivatives Accounting Fundamental Requirement of Derivatives Accounting Determination of Fair Value of Derivatives Accounting for Changes in the Fair Value of Derivatives Hedge Accounting Nature of the Hedged Risk Hedge Effectiveness Hedge Documentation Hedging Combinations Hedges of Foreign Currency–Denominated Assets and Liabilities Cash Flow Hedge Fair Value Hedge Forward Contract Hedge of a Foreign Currency–Denominated Asset Forward Contract Designated as Cash Flow Hedge Forward Contract Designated as Fair Value Hedge Discussion Question: Do We Have a Gain or What? Option Hedge of a Foreign Currency–Denominated Asset Option Designated as Cash Flow Hedge Option Designated as Fair Value Hedge Hedge of Unrecognized Foreign Currency Firm Commitment Forward Contract Fair Value Hedge of a Firm Commitment Option Fair Value Hedge of Firm Commitment Hedge of Forecasted Foreign Currency Transaction Forward Contract Cash Flow Hedge of a Forecasted Transaction Option Cash Flow Hedge of a Forecasted Transaction Use of Hedging Instruments International Financial Reporting Standard 9—Financial Instruments Summary Chapter Eight: Translation of Foreign Currency Financial Statements Exchange Rates Used in Translation Discussion Question: How Do We Report This? Translation Adjustments Balance Sheet Exposure Translation Methods Current Rate Method Temporal Method Translation of Retained Earnings Complicating Aspects of the Temporal Method Calculation of Cost of Goods Sold Application of the Lower-of-Cost-or-Net-Realizable-Value Rule Property, Plant, and Equipment, Depreciation, and Accumulated Depreciation Gain or Loss on the Sale of an Asset Treatment of Translation Adjustment Authoritative Guidance Determining the Appropriate Translation Method Highly Inflationary Economies Appropriate Exchange Rate International Accounting Standard 21—The Effects of Changes in Foreign Exchange Rates The Translation Process Illustrated Translation of Financial Statements—Current Rate Method Translation of the Balance Sheet Translation of the Statement of Cash Flows Remeasurement of Financial Statements—Temporal Method Remeasurement of the Income Statement Remeasurement of the Statement of Cash Flows Nonlocal Currency Balances Comparison of the Results from Applying the Two Different Methods Underlying Valuation Method Underlying Relationships Hedging Balance Sheet Exposure Accounting for Hedges of Remeasurement-Related Balance Sheet Exposure Accounting for Hedges of Translation-Related Balance Sheet Exposure International Financial Reporting Standard 9–Financial Instruments Disclosures Related to Translation Consolidation of a Foreign Subsidiary Translation of Foreign Subsidiary Trial Balance Determination of Balance in Investment Account—Equity Method Consolidation Worksheet Summary Chapter Nine: Partnerships: Formation and Operation Partnerships—Advantages and Disadvantages Alternative Legal Forms Subchapter S Corporation Limited Partnerships (LPs) Limited Liability Partnerships (LLPs) Limited Liability Companies (LLCs) Partnership Accounting—Capital Accounts Articles of Partnership Discussion Question: What Kind of Business is This? Accounting for Capital Contributions Additional Capital Contributions and Withdrawals Discussion Question: How Will the Profits Be Split? Allocation of Income Accounting for Partnership Dissolution Dissolution—Admission of a New Partner Dissolution—Withdrawal of a Partner Summary Chapter Ten: Partnerships: Termination and Liquidation Termination and Liquidation—Protecting the Interests of All Parties Partnership Liquidation Procedures Statement of Partnership Liquidation Deficit Capital Balances Discussion Question: What Happens if a Partner Becomes Insolvent? Partner with Deficit—Contribution to Partnership Partner with Deficit—Loss to Remaining Partners Two Partners with Deficit Capital Balances Safe Payments to Partners Preliminary Distribution of Partnership Assets Preliminary Distribution Illustrated Predistribution Plan Summary Chapter Eleven: Accounting for State and Local Governments (Part 1) Introduction to the Financial Reporting for State and Local Governments Governmental Accounting—User Needs Two Sets of Financial Statements The Benefits of Reporting Two Sets of Financial Statements Continuing Evolution of Financial Reporting Model Internal Recordkeeping—Fund Accounting Fund Accounting Classifications Overview of State and Local Government Financial Statements Government-Wide Financial Statements Fund Financial Statements Accounting for Governmental Funds The Importance of Budgets and the Recording of Budgetary Entries Encumbrances Recognition of Expenditures and Revenues Discussion Question: Is It an Asset or a Liability? Recognition of Revenues—Overview Reporting Derived Tax Revenues Such as Income Taxes and Sales Taxes Reporting Imposed Nonexchange Revenues Such as Property Taxes and Fines Reporting Government-Mandated Nonexchange Transactions and Voluntary Nonexchange Transactions Issuance of Bonds Special Assessments Interfund Transactions Summary Chapter Twelve: Accounting for State and Local Governments (Part 2) The Hierarchy of U.S. Generally Accepted Accounting Principles (GAAP) for State and Local Governments Tax Abatement Disclosure Defined Benefit Pension Plans Lease Accounting Solid Waste Landfill Landfills—Government-Wide Financial Statements Landfills—Fund Financial Statements Works of Art and Historical Treasures Infrastructure Assets and Depreciation Comprehensive Annual Financial Report The Primary Government and Component Units Primary Government Identifying Component Units Reporting Component Units Special-Purpose Governments Discussion Question: Is it Part of the County? Acquisitions, Mergers, and Transfers of Operations Government-Wide and Fund Financial Statements Illustrated Statement of Net Position—Government-Wide Financial Statements Statement of Activities—Government-Wide Financial Statements Balance Sheet—Governmental Funds—Fund Financial Statements Statement of Revenues, Expenditures, and Other Changes in Fund Balances—Governmental Funds—Fund Financial Statements Statement of Net Position—Proprietary Funds—Fund Financial Statements Statement of Revenues, Expenses, and Other Changes in Net Position—Proprietary Funds—Fund Financial Statements Statement of Cash Flows—Proprietary Funds—Fund Financial Statements Reporting Public Colleges and Universities Summary Index [Show More]

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