Wiley.com
Print this page Share
Textbook

Financial Accounting Theory and Analysis: Text and Cases, 11th Edition

Financial Accounting Theory and Analysis: Text and Cases, 11th Edition (EHEP002942) cover image

Description

Financial Accounting Theory and Analysis: Text and Cases, 11th Edition continues to focus on showing readers how accounting standards directly affect daily decision making on the job. The new edition of this text has been updated and revised to provide students and professionals with the theoretical background they need to keep up with the convergence issues and succeed in today’s increasingly global economy. The 11th Edition incorporates all new standards or exposure drafts from the FASB and IASB released, including an updated revenue recognition section with the FASB’s discussion of the “milestone method” integrated.

See More

Table of Contents

Preface iii

1 THE DEVELOPMENT OF ACCOUNTING THEORY 1

The Early History of Accounting 2

Accounting in the United States since 1930 5

The Role of Ethics in Accounting 21

International Accounting Standards 26

Cases 28 FASB ASC Research 30 Room for Debate 31

2 THE PURSUIT OF THE CONCEPTUAL FRAMEWORK 32

The Early Theorists 32

Early Authoritative and Semi-Authoritative Organizational Attempts to Develop the Conceptual Framework of Accounting 35

The FASB’s Conceptual Framework Project 46

Principles-Based versus Rules-Based Accounting Standards 59

International Convergence 64

Cases 75 FASB ASC Research 77 Room for Debate 78

3 INTERNATIONAL ACCOUNTING 79

International Business Accounting Issues 80

The Development of Accounting Systems 80

Preparation of Financial Statements for Foreign Users 83

The International Accounting Standards Committee 83

The IFRS Foundation Constitution 88

The Uses of International Accounting Standards 92

The IASC and the IOSCO 93

The IASB Annual Improvements Project 94

The Use of IASC Standards 95

The IASB–FASB Convergence Project 95

The Effects of International versus U.S. GAAP Accounting Standards 100

Standards Overload 103

Framework for the Preparation and Presentation of Financial Statements 104

IAS No. 1 and IFRS No. 1 111

Cases 113 FASB ASC Research 115 Room for Debate 115

4 RESEARCH METHODOLOGY AND THEORIES ON THE USES OF ACCOUNTING INFORMATION 117

Research Methodology 118

The Outcomes of Providing Accounting Information 120

The Relationship among Research, Education, and Practice 142

Cases 143 FASB ASC Research 146 Room for Debate 146

5 INCOME CONCEPTS 148

The Nature of Income 150

Income Recognition 155

Earnings Quality, Earnings Management, and Fraudulent Financial Reporting 169

Cases 177 FASB ASC Research 180 Room for Debate 182

6 FINANCIAL STATEMENT I: THE INCOME STATEMENT 183

The Economic Consequences of Financial Reporting 183

Income Statement Elements 184

Statement Format 185

Proposed Format of the Statement of Comprehensive Income 209

The Value of Corporate Earnings 212

International Accounting Standards 216

Cases 221 FASB ASC Research 226 Room for Debate 227

7 FINANCIAL STATEMENTS II: THE BALANCE SHEET AND THE STATEMENT OF CASH FLOWS 229

The Balance Sheet 230

Fair Value Measurements under SFAS No. 157 242

Proposed Format of the Statement of Financial Position 248

Evaluating a Company’s Financial Position 250

The Statement of Cash Flows 254

Financial Analysis of Cash-Flow Information 265

International Accounting Standards 267

Cases 273 FASB ASC Research 277 Room for Debate 278

8 WORKING CAPITAL 279

Development of the Working Capital Concept 279

Current Usage 281

Components of Working Capital 282

Financial Analysis of a Company’s Working Capital Position 294

International Accounting Standards 300

Cases 301 FASB ASC Research 305 Room for Debate 306

9 LONG-TERM ASSETS I: PROPERTY, PLANT, AND EQUIPMENT 308

Property, Plant, and Equipment 308

Financial Analysis of Property, Plant, and Equipment 313

International Accounting Standards 324

Cases 330 FASB ASC Research 335 Room for Debate 336

10 LONG-TERM ASSETS II: INVESTMENTS AND INTANGIBLES 338

Investments in Equity Securities 338

Investments in Debt Securities 347

Impairment of Investments in Unsecuritized Debt 350

Transfers of Financial Assets 352

Intangibles 353

Financial Analysis of Investments and Intangibles 363

International Accounting Standards 363

Cases 370 FASB ASC Research 374 Room for Debate 375

11 LONG-TERM LIABILITIES 377

The Definition of Liabilities 378

Recognition and Measurement of Liabilities 379

Debt versus Equity 379

Classification of Long-Term Debt 384

Other Liability Measurement Issues 397

Troubled Debt Restructurings 402

International Accounting Standards 408

Cases 413 FASB ASC Research 418 Room for Debate 419

12 ACCOUNTING FOR INCOME TAXES 421

Historical Perspective 421

The Income Tax Allocation Issue 423

SFAS No. 109 439

Financial Analysis of Income Taxes 445

International Accounting Standards 448

Cases 451 FASB ASC Research 455 Room for Debate 456

13 LEASES 458

Accounting for Leases 459

Financial Analysis of Leases 473

International Accounting Standards 479

Cases 480 FASB ASC Research 485 Room for Debate 486

14 PENSIONS AND OTHER POSTRETIREMENT BENEFITS 487

Historical Perspective 490

Accounting for the Pension Fund 500

The Employee Retirement Income Security Act 501

Other Postretirement Benefi ts 502

SFAS No. 132 504

SFAS No. 158 504

Financial Analysis of Pension and Other Postretirement Benefits 507

International Accounting Standards 507

Cases 510 FASB ASC Research 512 Room for Debate 513

15 EQUITY 515

Theories of Equity 516

Definition of Equity 521

Reporting Equity 525

Financial Analysis of Stockholders’ Equity 539

International Accounting Standards 540

Cases 542 FASB ASC Research 547 Room for Debate 548

16 ACCOUNTING FOR MULTIPLE ENTITIES 550

Business Combinations 550

Accounting for Business Combinations 551

Business Combinations II 557

Theories of Consolidation 561

Noncontrolling Interest 562

Drawbacks of Consolidation 565

Special-Purpose Entities 566

Variable Interest Entities 567

Segment Reporting 568

Foreign Currency Translation 573

International Accounting Standards 581

Cases 593 FASB ASC Research 596 Room for Debate 597

17 FINANCIAL REPORTING DISCLOSURE REQUIREMENT AND ETHICAL RESPONSIBILITIES 599

Recognition and Measurement Criteria 599

Areas Directly Affected by Existing FASB Standards: Supplementary Information 603

Other Means of Financial Reporting 608

Other Useful Information for Investment, Credit, and Similar Decisions 612

Securities and Exchange Commission 614

Ethical Responsibilities 623

International Accounting Standards 630

Cases 631 FASB ASC Research 636 Room for Debate 637

Index 639

See More

New To This Edition

  • New test bank included in the solutions manual containing over 250 multiple choice and over 200 essay questions. Incorporates the latest standards or exposure drafts from the FASB and IASB released by 12/31/2012.
  • Updated revenue recognition section includes the FASB’s new revised exposure drafts.
  • The discussion of comprehensive income has been updated to include the new reporting requirement.
  • The new edition also includes updated discussions of offsetting assets and liabilities and the FASB’s new ASU on the topic.
  • New discussion of the criticism of the conceptual framework project and discussion of the exposure draft on “The Conceptual Framework for Financial Reporting: The Reporting Entity” in Chapter 2.
See More

The Wiley Advantage

  • This book is available as a Wiley E-Text at 50% off the printed textbook.  E-textbooks offer the complete content of the printed textbook on the device of your preference—computer, iPad, tablet, or smartphone—giving you the freedom to read or study anytime, anywhere.
  • Each chapter begins with a discussion of the relevant theoretical issues to allow students to connect to real-world examples.
  • Each chapter contains a web case and a Room for Debate case, and a series of additional cases are available at the book companion website: www.wiley.com/college/schroeder.
  • Accounting Weekly Updates: www.wileyaccountingupdates.com. Every week brings you the latest news relevant to your Accounting course. Password only available to current users.
See More
Instructors Resources
Wiley Instructor Companion Site
Accounting Weekly Updates
www.wileyaccountingupdates.com. Every week brings you the latest news relevant to your Accounting course. Password only available to current users.
Instructor Solutions Manual
Contains detailed solutions to all questions, exercises, and problems in the textbook.
Test Bank
Test your students’ comprehension with this digital collection of fill-in-the-blank, multiple-choice, true/false, and free-response questions.
PowerPoint Presentations
Our PowerPoint™ presentations contain a combination of key concepts allowing you to illustrate important topics with images, figures, and problems from the textbook.
Web Cases
Request a print evaluation copy
Contact us
Contact your Wiley Representative
Find Your Rep
See More
See Less
Students Resources
Wiley Student Companion Site
Web Cases
See More
See Less
Purchase Options
Wiley E-Text   
Financial Accounting Theory and Analysis: Text and Cases, 11th Edition
ISBN : 978-1-118-80637-1
672 pages
October 2013, ©2014
$80.00   BUY

Paperback   
Financial Accounting Theory and Analysis: Text and Cases, 11th Edition
ISBN : 978-1-118-58279-4
672 pages
October 2013, ©2014
$262.95   BUY

Related Titles

Back to Top