Financial Accounting in an Economic Context has become an important part of the curriculum in many MBA programs. Grounded in financial statements, Pratt's Financial Accountinghelps students see the impact of transactions on overall business decisions. The text enables MBA students to become effective managers and decision-makers by encouraging them to develop a conceptual understanding of the impact that economic events have on a business. The newest edition on this popular text addresses topics that today’s accountants and managers must consider: increased impacts of IFRS, fair value reporting, segment reporting and an earnings management framework. While addressing recent developments and maintaining the perspective of the previous editions, Financial Accounting in an Economic Context 8th Editionoffers new elements designed to sharpen the text’s economic decisions-making foundation. The text highlights the differences between IFRS and GAAP throughout each chapter. Each chapter closes with a “Issue for Discussion” feature, allowing students to apply data found in the financial statements of an international company. New boxed-in features illustrate the effects of accounting transitions on cash flow of statements and new end of chapter items address the cash flow effects of accounting transactions.
Part 1: An Overview of Financial Accounting
1. Financial Accounting and its Economic Context
2. The Financial Statements
Part 2: Measurement, Mechanics, and Use of Financial Statements
3. The Measurement Fundamentals of Financial Accounting
4. The Mechanics of Financial Accounting
5. Using Financial Statement Information
Part 3: Assets: A Closer Look
6. The Current Asset Classification, Cash, and Accounts Receivable
7. Merchandise Inventory
8. Investments in Equity Securities
9. Long-Lived Assets
Part 4: Liabilities and Stockholder's Equity: A Closer Look
10. Introduction to Liabilities: Economic Consequences, Current Liabilities, and Contingencies
11. Long-Term Liabilities: Notes, Bonds, and Leases
12. Stockholders' Equity
Part 5: Income and Flows
13. The Complete Income Statement
14. The Statement of Cash Flows
- Virtually all of the references and examples using real world companies have been updated to best reflect the current issues in financial markets and the global business environment.
- Updated "International Perspective" sections at the end of each chapter that explain the current and relevant differences between IFRS and GAAP.
- At the end of each chapter, students are directed to the Google SEC Form 10K to complete short case questions that are relevant to the chapter.
- Chapters 6-13 include special sections that discuss ROE analysis in terms of the chapter topic. Students are asked to analyze real company data with an ROE spreadsheet model, available through the book’s companion website.
- Integrated Questions for Discussion and Review: End of Chapter Questions for Discussion and Review are strategically placed in separate boxes within each chapter, immediately after the coverage of the concepts they refer to.
- Ethics In Action: Located at the end of each chapter, an ethical dilemma and relevant, open-ended questions drawn from the examples of actual companies challenge students' critical-thinking abilities.