Financial accounting Books

Book SynopsisAlan Melville, FCA, BSc, Cert. Ed. is a best-selling author. Previously a Senior Lecturer at Nottingham Trent University, he has many years of experience teaching accounting and financial reporting.Table of ContentsPreface Acknowledgements List of international standards Part 1 Introduction to Financial Reporting The regulatory framework The IASB conceptual framework Presentation of financial statements Accounting policies, estimates and errors Part 2 Financial Reporting in Practice Property, plant and equipment Intangible assets Impairment of assets Non-current assets held for sale and discontinued operations Leases Inventories Financial instruments Provisions and events after the reporting period Revenue from contracts with customers Employee benefits Taxation in financial statements Statement of cash flows Financial reporting in hyperinflationary economies Part 3 Consolidated Financial Statements Groups of companies (1) Groups of companies (2) Associates and joint arrangements Related parties and changes in foreign exchange rates Part 4 Analysis of Financial Statements Ratio analysis Earnings per share Segmental analysis Part 5 Small and Medium-sized Entities The IFRS for SMEs® Standard Part 6 Answers Answers to exercises Index

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Book Synopsis The bestselling classic from the âœSherlock Holmes of Accountingââupdated to reflect the key case studies and most important lessons from the past quarter century. This fourth edition of the classic guide shines a light on the most shocking frauds and financial reporting offenders of the last twenty-five years, and gives investors the tools they need to detect: âCorporate cultures that incentivize dishonest practices âThe latest tricks companies use to exaggerate revenue and earnings âTechniques devised by management to manipulate cash flow as easily as earnings âCompanies that use misleading metrics to fool investors about their financial performance âHow companies use Table of ContentsPreface: Reflections on My Last 25 YearsPart One: Establishing the FoundationChapter 1: 25 Years of ShenanigansChapter 2: Just Touch Up the X-RaysPart Two: Earnings Manipulation ShenanigansChapter 3: Earnings Manipulation Shenanigan No. 1: Recording Revenue Too SoonChapter 4: Earnings Manipulation Shenanigan No. 2: Recording Bogus RevenueChapter 5: Earnings Manipulation Shenanigan No. 3: Boosting Income with One-Time or Unsustainable ActivitiesChapter 6: Earnings Manipulation Shenanigan No. 4: Shifting Current Expenses to a Later PeriodChapter 7: Earnings Manipulation Shenanigan No. 5: Employing Other Techniques to Hide Expenses or LossesChapter 8: Earnings Manipulation Shenanigan No. 6: Shifting Current Income to a Later PeriodChapter 9: Earnings Manipulation Shenanigan No. 7: Shifting Future Expenses to the Current PeriodPart Three: Cash Flow ShenanigansChapter 10: Cash Flow Shenanigan No. 1: Shifting Financing Cash Inflows to the Operating SectionChapter 11: Cash Flow Shenanigan No. 2: Moving Operating Cash Outflows to Other SectionsChapter 12: Cash Flow Shenanigan No. 3: Boosting Operating Cash Flow Using Unsustainable ActivitiesPart Four: Key Metrics ShenanigansChapter 13: Key Metric Shenanigan No. 1: Showcasing Misleading Metrics that Overstate PerformanceChapter 14: Key Metric Shenanigan No. 2: Distorting Balance Sheet Metrics to Avoid Showing DeteriorationPart Five: Acquisition Accounting ShenanigansChapter 15: Acquisition Accounting Shenanigan No. 1: Artificially Boosting Revenue and EarningsChapter 16: Acquisition Accounting Shenanigan No. 2: Inflating Reported Cash FlowChapter 17: Acquisition Accounting Shenanigan No. 3: Manipulating Key MetricsPart Six: Putting it all TogetherChapter 18: The UnravelingChapter 19: The Forensic MindsetIndexAcknowledgments

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Book SynopsisComprehensive guide for MBA and professional programs covering financial statement preparation, analysis, and interpretation. New topics include accounting fraud, cash flow ratios, and earnings quality. Features real-world cases, expert interviews, pedagogical elements, and interactive study resources.

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Book SynopsisFinance For Non-Financial Managers In A Week is a simple and straightforward training course in finance, giving you everything you need to know in just seven short chapters. From the profit statement and the balance sheet through to costing and budgets, it will help you deal confidently with questions such as ''What is the return on investment?'', ''Do we have the resources?'' and ''What are the cash implications?'' You''ll also find exercises to help you put it all into action.This book introduces you to the main themes and ideas finance and accounting, giving you a basic knowledge and understanding of the key concepts, together with practical and thought-provoking exercises. Whether you choose to read it in a week or in a single sitting, Finance For Non-Financial Managers In A Week is your fastest route to success:- Sunday: An introduction to the profit statement- Monday: An introduction to the balance sheet- Tuesday: Understanding published aTable of Contents : Sunday: Learn how profit statements are constructed in order to understand exactly why there has been a profit or loss. : Monday: Understand the concept of a balance sheet so that you know the net worth of the business and how assets and liabilities are summarised. : Tuesday: Study what must be disclosed in published accounts so that you can obtain key information about almost any company. : Wednesday: Explore the fascinating field of accounting ratios and investment decisions so that you can use them effectively. : Thursday: Find out just why cash and the management of working capital is so important so that you can manage it and not run out of it. : Friday: Master key principles of the often misunderstood tool of costing so that you are more able to price goods and services realistically. : Saturday: Understand how budgets are constructed so that you can prepare them and use them.

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Book SynopsisAbout our authors William (Bill) Thomas is the J. E. Bush Professor of Accounting and a Master Teacher at Baylor University. A Baylor University alumnus, he received both his BBA and MBA there and went on to earn his PhD from The University of Texas at Austin. With primary interests in the areas of financial accounting and auditing, Bill Thomas has served as the J. E. Bush Professor of Accounting since 1995. He has been a member of the faculty of the Accounting and Business Law Department of the Hankamer School of Business since 1971, and served as chair of the department for 12 years. He has been recognized as an Outstanding Faculty Member of Baylor University as well as a Distinguished Professor for the Hankamer School of Business. Dr. Thomas has received many awards for outstanding teaching, including the Outstanding Professor in the Executive MBA Programs as well as designation as Master Teacher. Thomas is the author of textbooks in auditiTable of Contents Conceptual Framework and The Financial Statements Recording Business Transactions Accrual Accounting Presentation of Financial Statements Internal Control, Cash, and Receivables Inventory and Merchandising Operations PPE and Intangibles Investments Liabilities Shareholders’ Equity Cash Flows Financial Statement Analysis Appendix A: Nestlé Annual Report Excerpts Appendix B: Time Value of Money Appendix C: Typical Charts of Accounts for Different Types of Businesses Appendix D: International Financial Reporting Standards (IFRSs)

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Book SynopsisThe book discusses the balance sheet mapping in detail, including the related audit requirements and examines in which balance sheet item the amounts (allegedly) in escrow accounts should have been reported, before examining and weighing the corresponding income statement items.

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Book SynopsisThese authors knowledge of the nuances of movie and television accounting shines through the pages of this book, which is sure to become a standard reference in this field. -- Harold L. Vogel, author, Entertainment Industry Economics. The distribution of a motion pictures profits is, for most filmmakers, a murky, labyrinthine domain ruled by studio/distributor accountants and lawyers. Movie Money -- a must-read for all film producers, directors, writers, and actors -- unravels, demystifies, and explains the film industrys unique, arcane, creative accounting practices. It examines a films various revenue-generating and revenue-consuming components and presents numerous film industry definitions and calculations of gross and net profits. It also provides in-depth coverage of the various aspects of profit participation -- its terminology and accounting and deal practices -- along with chapters on audits, claims, and negotiating tips and tricks. The Third Edition adds a wealth of all-new material on New Media, a chapter on film distribution and production in todays China, written by Tracy Liang (a CPA with Green Hasson Janks), as well as a thorough updating of every section of the book.

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Book SynopsisThrough careful classification of the opportunities and challenges facing current financial regulatory bodies, the Research Handbook on Financial Accounting inspects the financial implications of our ever-changing modern economic and environmental climate. This Research Handbook covers a broad selection of topics ranging from globalization to sustainable accounting, providing highly relevant contemporary insights into important subject areas such as ESG reporting and crypto-assets accounting. Offering detailed illustrations of the benefits and costs of adopting international accounting standards, it explores significant current issues within the field of financial accounting, painting a fully up-to-date picture of the most recent accountancy trends. It details the intricacies of company and stakeholder interactions, and presents a growing need for changing accounting standards as businesses expand internationally. Academics of such disciplines as finance, accountancy, economics, and business administration will find this book to be of huge benefit. Due to its professional applicability, this Research Handbook will additionally be ideal for those working in the fields of accountancy, auditing, and financial analysis.Trade Review‘The business world is fast changing but accounting is perennially slow to catch up, always lagging seriously behind developments. This collection of important articles on key issues, such as accounting manipulations, intangibles, nonfinancial information, and corporate governance goes a long way in closing the gap between business reality and accounting. It is an important resource for CFOs, accountants, investors, and business students.’ -- Baruch I. Lev, Philip Bardes Professor Emeritus of Accounting and Finance, NYU, USTable of ContentsContents: Introduction to the Research Handbook on Financial Accounting 1 Luz Parrondo and Oriol Amat PART I GLOBALIZATION AND ACCOUNTING CONVERGENCE 1 The benefits and detriments of global accounting convergence 5 Madeline Trimble and Xiaoxiao Song PART II EARNINGS MANAGEMENT, ACCRUAL MANIPULATION, FRAUD, AND SOCIAL RESPONSIBILITY 2 Corporate Social Responsibility reporting and accounting 25 Seraina C. Anagnostopoulou 3 The impact of earnings management and the economic cycle on stress test results 45 Gregorio Labatut-Serer, Elisabeth Bustos-Contell and Salvador Climent-Serrano 4 Non-GAAP financial reporting: an ethical analysis 62 Steven M. Mintz, William F. Miller and Tara J. Shawver 5 Comprehensive red flag model for accounting fraud detection using qualitative and quantitative variables 87 Pilar Lloret Millán, Núria Arimany Serrat and Oriol Amat PART III SUSTAINABLE ACCOUNTING 6 Financial accounting and the natural environment: the case of climate change 105 Elena Carrión, Carlos Larrinaga and Antonio Mateo 7 Sustainability reporting regulation: current situation and future developments 120 Soledad Moya 8 EFRAG roadmap for new developments in ERS reporting 137 Luz Parrondo 9 Materiality in sustainability and integrated reporting contexts: an application of logics 155 Dannielle Cerbone and Warren Maroun PART IV FAIR VALUE AND INTANGIBLES IN ACCOUNTING 10 Outlining commitment and resistance to dominant accounting paradigms 170 Wayne van Zijl and Warren Maroun 11 Value-relevance of intangibles – a structured literature review 183 Olga Grzybek and Elena-Mirela Nichita PART V NEW TRENDS IN FINANCIAL ACCOUNTING 12 The use of non-financial information in financial reporting 212 Jordi Martí Pidelaserra 13 The role of the public interest in shaping corporate reporting: challenges for accounting research 231 Begoña Giner and Araceli Mora 14 The importance of corporate governance information and disclosure for investors 249 Raffaele Manini 15 Typology and classification of crypto-assets based on the MiCA regulatory framework: contributions and limitations 262 Luz Parrondo Index

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Book SynopsisA riveting look at the perpetrators, victims, and whistleblowers behind financial crimes, from forensic accounting expert and documentarian Kelly Richmond Pope.Have you ever wondered why Bernie Madoff thought he could brazenly steal his clients' money? Or why investors were so easily duped by Elizabeth Holmes? Or how courageous people like Jeffrey Wigand are willing to become whistleblowers and put their careers on the line?Fraud is everywhere, from Nigerian "princes," embezzlers, and Ponzi schemers to corporate giants like Enron and Volkswagen. And fraud is costly. Each year, consumers, small businesses, governments, and corporations lose trillions of dollars to financial crime.We're so accustomed to hearing about fraud that our abilities to identify it and speak about it are limited.No more. In Fool Me Once, renowned forensic accounting expert Kelly Richmond Pope shows fraud in action, uncovering what makes perps tick, victims so gullible, and whistleblowers so morally righteous, while also encouraging us to look at our own behaviors and motivations in the hope of protecting ourselves and our companies.By the time you finish this book, you'll have a better understanding of—and perhaps even compassion for—perpetrators, a renewed connection to victims, and an appreciation for those who blow the whistle.Filled with fascinating stories and insightful analysis, Fool Me Once will open your eyes and challenge your thinking. It will inspire you to question your own preconceived notions about fraud. It will challenge your beliefs about yourself and other people. And it will help you understand a phenomenon that most of us fail to grasp—until it's too late.Trade Review"With Fool Me Once, Ms. Pope reveals the vulnerabilities that we all share and offers advice on how to guard against those who would prey on us." — The Wall Street JournalNamed one of "40 Nonfiction Books to Watch Out for in 2023" by The Next Big Idea ClubAdvance Praise for Fool Me Once:"Fool Me Once is a lively, relatable, and pragmatic approach to the subject of 'everyday fraud'—the quotidian scams that don't always make headlines but that do always take their toll in human misery, economic disruption, and social mistrust. Intimate stories of victims, perpetrators, and whistleblowers deepen the impact of Kelly Richmond Pope's research, giving us uncommon insights into these all-too-common crimes." — Diana B. Henriques, author, New York Times bestseller The Wizard of Lies"Fool Me Once is insightful, educational, and highly entertaining. Based on hundreds of hours of direct personal contact with fraudsters, Kelly Richmond Pope offers a riveting take on the human side of fraud. A must-read!" — Bethany McLean, coauthor, New York Times bestseller All the Devils Are Here"As someone who has been a certified fraud examiner for most of my career, I have long been fascinated with the psychology of human behavior. I have lived through the WorldCom fraud and have witnessed the devastating impact that fraud can have on the lives of so many people. Fool Me Once is required reading for anyone who wants to better understand perpetrators, victims, and whistleblowers and how to better prevent, detect, and investigate fraud." — Cynthia Cooper, international speaker; author, Extraordinary Circumstances"Accessible, humorous, and engaging, Fool Me Once includes fascinating stories from the perspective of one of the nation's foremost fraud research experts. I recommend this book for corporate and academic discussion or for anyone interested in understanding and preventing fraud. I do not recommend it for potential fraudsters!" — Paula A. Price, former Chief Financial Officer, Macy's; senior lecturer, Harvard Business School"Fool Me Once sets the bar high for how to protect yourself from scammers. It is an essential read." — Joe Navarro, former FBI Special Agent; author, Dangerous Personalities"Kelly Richmond Pope's Fool Me Once is a gripping examination of the growing world of fraud and white-collar crime. Based on a decade of research and interviews with perpetrators, whistleblowers, and victims, the book delves deeply into the motivations behind corruption in all its forms. Pope's expert insights as a forensic accountant, combined with her narrative skills, make the book a must-read for anyone looking to better understand the forces driving this spiraling problem." — Bradley Hope, coauthor, New York Times bestseller, Billion Dollar Whale

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Book SynopsisAccounting practice is developing at a fast pace and this book reflects these changes. The book outlines and explains the basis of accounting techniques whilst also describing modern company reporting requirements. Accessible for students, the book contains extensive cross-referencing to an actual company annual report, included within the text.Table of Contents1. Principles and Practices ; 2. Recording Financial Information ; 3. Summarising Financial Information ; 4. The Profit and Loss Account: from 'turnover' to 'profit before interest and taxation' ; 5. The Profit and Loss Account: from 'profit before interest and taxation' to 'retained profit'. ; 6. The Balance Sheet: Assets ; 7. The Balance Sheet: Liabilities ; 8. The Balance Sheet: Capital and Reserves ; 9. The Cash Flow Statement ; 10. Consolidated Financial Statements ; 11. The Annual Report ; 12. Understanding and Analysing the Annual Report ; Appendix 1: Latest Annual Report of Domino's Pizzas UK and IRL plc ; Appendix 2: Answers to Multiple Choice Questions ; Appendix 3: Solutions to longer questions ; Appendix 4: Answers to mini case studies ; Chapter summaries for revision

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Book SynopsisTrade ReviewPenman's book...contains gems on every page - to the point that no one who deals with the market in any capacity should pass by this text until they have committed to memory as many points therein as their limited, mark one, human brains, can hold. -- Anthony Harrington QFinance Blog I highly recommend the essential and fundamentals oriented book Accounting for Value by Stephen Penman, to anyone who is serious about investing in sound, fundamental stocks. This book will benefit the beginning or experienced investor, accountants, and anyone interested in the coupling of accounting with equity valuation. Blog Business World For a practical book that will help you understand the use of accounting in understanding stock valuation, Accounting for Value is the resource you are looking for you. Stocker BlogTable of ContentsIntroduction Chapter 1 Return to Fundamentals (and an Accounting for the History of Investment Ideas) Chapter 2 Anchoring on Fundamentals (and How Accounting Supplies the Anchor) Chapter 3 Challenging Market Prices with Fundamentals (and Deploying Accounting for the Challenge) Chapter 4 Accounting for Growth from Leverage (and Protection from Paying Too Much for Growth) Chapter 5 Accounting for Growth in the Business (and More Protection from Paying Too Much for Growth) Chapter 6 Accounting for Risk and Return (and a Remedy for Ignorance About the Cost-of-Capital) Chapter 7 Pricing Growth (and a Revision to Value Versus Growth Investing) Chapter 8 Fair Value Accounting and Accounting for Value Chapter 9 Adding Value to Accounting Chapter 10 The Intelligent Investor and the Intelligent Accountant

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Book SynopsisJavier Estrada holds an M.S. in Finance and a Ph.D. in Economics both from the University of Illinois at Urbana-Champaign. He is currently an associate professor at the IESE Business School in Barcelona, Spain; the co-editor of the Emerging Markets Review; and a wealth management advisor at Sports Global Consulting. He has published extensively in international journals, written many cases for class discussion, and lectured throughout the world.Trade Review‘This delivers the essential concepts of modern finance clearly and concisely. My advice: buy this book and keep it close at hand!' Mark Kritzman, President and CIO, Windham Capital Management, LLC ‘Whilst there are a number of books that purport to offer a quick reference for business professionals, this is the only one that really manages to do this in an effective way.' Valerio Potì, Director of the MSc in Finance and Capital Markets Program, Dublin City University Business School ‘This is corporate finance served in bite-sized and digestible portions.' Elroy Dimson, Emeritus Professor of Finance, London Business School ‘Javier Estrada is to be commended for translating deep economic ideas into terms that are immediately usable, compelling and valuable.' Robert F. Bruner, Dean of Darden Business School, University of Virginia Table of ContentsPublisher's acknowledgments Preface to the second edition Preface to the first edition PART I: RISK AND RETURN 1 Returns (I): Basic concepts 2 Returns (II): Mean returns 3 Risk (I): Total risk 4 Risk and return (I): Portfolios 5 Risk (II): Diversification &

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Book SynopsisBob Steiner is the founder/managing director of Markets International, an independent training company. A former treasury officer and financial consultant he's also the author of Key Financial Market Concepts, now in its second edition.Table of Contents Part 1 The Basics Chapter 1: Financial Arithmetic Basics Part 2 Interest Rate Instruments Chapter 2: The Money Market Chapter 3: Forward-Forwards and Forward Rate Agreements Chapter 4: Interest Rate Structures Chapter 5: Bond Market Calculations Chapter 6: Repos, But/Sell-backs and Securities Lending Chapter 7: Zero-Coupon Rates and Yield Curves Part 3 Foreign Exchange Chapter 8: Foreign Exchange Part 4 Swaps and Options Chapter 9: Interest Rate and Currency Swaps Chapter 10: Options Part 5 Gold and other commodities Chapter 11: Gold and other commodities Part 6 Hints and Answers to Exercises Chapter 12: Hints and Answers to Exercises

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Book SynopsisThis book investigates the legitimacy of the current Australian Financial Services Licensee-Authorised Representative (AFSL-AR) licensing model, as specified in the Commonwealth Corporations Act 2001.The book rectifies the deficiency in scholarly attention to this matter by developing a new conceptualised framework for the financial planning discipline. It takes into account theories in agency, legislation, legitimacy and the independent individual regulatory regimes in other professions; thereafter integrating this framework with the financial planning theory to examine the legitimacy, or what was found to be the illegitimacy of licensing advisers via multiple third party conflicted commercially oriented licensees.This book makes a very useful reference to understanding financial planning licencing model in Australia.Table of Contents1. Introduction 2. International Trends in Financial Adviser Regulation 3. Legitimacy of Current Licensee-Adviser Licensing for Australian Financial Advisers 4. Research Paradigm, Methodology and SEM Design 5. Contextualising Current Licensing of Financial Advisers: Preliminary Analysis using Confirmatory Factor Analysis 6. Empirical Analysis of the Current AFSL-AR Licensing Regime and the Existing Licensee-Adviser Relationship 7. Conclusion

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Book SynopsisThe Origins Of Accounting Culture aim at studying the origins of the accounting culture in Venice, with a specific focus on accounting education. The period covered by the work ranges from Luca Pacioli to the foundation (in 1868) of the Royal Advanced School of Commerce (Regia Scuola Superiore di Commercio), that in 2018 is celebrating its 150 anniversary as Ca' Foscari University of Venice.Ever since the Middle Ages, Venice was home of a number of favourable circumstances that have been accumulating over the years. As a trading city par excellence, Venice allowed the spreading of the bookkeeping at first among firms and then in the public administration that was much in need of sophisticated accounting principles for the purpose of controlling its activities.Venice was among the first cities to implement Gutenberg print method and it quickly became the most important city in the world in the publishing indTable of ContentsList of Tables and Figures Foreword Preface Section I Accounting treaties. 1. Venetian treatises: a frame2. A Venetian treatise before Pacioli by Marino de Raphaeli3. The spread of double-entry bookkeeping method in the 16th Century: "Quaderno doppio col suo giornale novamente composto et dilegentissimamente ordinato secondo il costume di Venetia" of Dominico Manzoni (1540)4. Giovanni Antonio Moschetti: the wise embodiment of a 17th-century intellectual (1610)5. Bookkeeping treatises in Venice: The contributions of Francesco Garatti (1686 – 1688)6. Niccolò D’Anastasio, forerunning of modern accounting (1803).Section II Companies. 7. Accounting and Power interrelations at the origin of the Venetian Hospital "SS. Giovanni e Paolo"8. Managing the largest printing business in Europe: The Remondini in Bassano (17th to 19th century)9. Carive accounting system: An evolutionary perspective in its early years10. Firm and industry dimensions of the glassmaking industry in Venice: The case of Barovier & Toso11. Accounting in the venetian textile industries. 12. The fraudulent investor: an accounting investigation on a Venetian manufactory, 1778-1784.Section III Accounting education 13. Accounting Profession and Education in the XV and XVI centuries Venice: The case of Collegio de Rasonati and Scuola di Rialto14. The rise of a culture of planning and control: The case of Scuola Grande di San Rocco in the XVI century15. Al nome de Dio e bon guadagno – Pacioli, Venice, Education and Bookkeeping; 16. Accounting History and Accounting Education: The Venetian Arsenale Connection17. Fabio Besta, Accounting History and Accounting Education18. The reform of the "Collegio dei Ragionati" in the early eighteenth century19 Historical origins and evolution of small and medium practices in providing accounting support.References Index

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Book SynopsisIn this updated, second edition of the highly acclaimed international best seller, The Dollar Crisis: Causes, Consequences, Cures, Richard Duncan describes the flaws in the international monetary system that have destabilized the global economy and that may soon culminate in a deflation-induced worldwide economic slump. The Dollar Crisis is divided into five parts: Part One describes how the US trade deficits, which now exceed US$1 million a minute, have destabilized the global economy by creating a worldwide credit bubble. Part Two explains why these giant deficits cannot persist and why a US recession and a collapse in the value of the Dollar are unavoidable. Part Three analyzes the extraordinarily harmful impact that the US recession and the collapse of the Dollar will have on the rest of the world. Part Four offers original recommendations that, if implemented, would help mitigate the damage of the coming worTrade ReviewPosterity may remember The Dollar Crisis as a seminal book in the field of 21st century economics. Indeed, rarely has a book offered such a grim yet, well argued view of the current economic situation facing the world.-- Steven Irvine, FinanceAsia Duncan writes like a man who’s already seen tomorrow. -- James Grant, Grant’s Interest Rate Observer I held a class for about 150 people on the book entitled "The Dollar Crisis," authored by Richard Duncan. If you want to better understand why the real estate bubble bust and the crash of the dollar will probably lead to a prolonged recession, you may want to read this book sooner rather than later. In a nutshell, we really do not have a real estate bubble... the world is in a currency bubble. In other words, the governments of the world have printed too much "funny" money and cash will soon turn to trash. Even if you are not in real estate or are saving dollars, you may want to read this book to find out what you need to invest in now, before the bubble bursts. If you are in stocks and mutual funds, you definitely want to read this book.-- Robert Kiyosaki, author of Rich Dad, Poor Dad I would like every one of my subscribers to click on to Amazon.com and buy a new book that has just been published entitled, “The Dollar Crisis, Causes, Consequences, Cures.” The book costs around twenty bucks and is worth ten times that amount. The author, Richard Duncan has a great background and is as smart as they come. He explains why he sees a crashing dollar and a severe recession coming up in the US – plus a world recession. This is no wild-eyed guru, this is a guy who knows what he’s talking about and a guy who understands money and the world monetary system – he’s worked for both the World Bank and the International Monetary Fund. Please buy this book!-- Richard Russell, Dow Theory Letters Richard Duncan crisply explains why payback time for years of credit excesses, payments imbalances and securitized sub-par lending is imminent. Mr Greenspan, your time is up. --Philip Bowring, International Herald Tribune Richard Duncan’s excellent book… we cannot recommend it enough.-- Bill Bonner, The Daily Reckoning Richard Duncan… is one of the brightest financial analysts I know. Richard is the author of one of my favorite books called The Dollar Crisis: Causes, Consequences, Cures.-- John Mauldin, Thoughts from the Frontline For a preview of how it might play out, consult Richard Duncan’s recently revised book, The Dollar Crisis: Causes, Consequences, Cures. Just try to sleep after digesting its thesis that the world’s biggest economy is looking like a huge and growing Ponzi scheme.--William Pesek Jr., International Herald TribuneTable of ContentsPreface to the Revised Edition. Introduction. PART ONE: THE ORIGIN OF ECONOMIC BUBBLES. Introduction. Chapter 1. The Imbalance of Payments. Chapter 2. Effervescent Economies. Chapter 3. The New Paradigm Bubble. Chapter 4. The Great American Bubble (of the 1920s). PART TWO: FLAWS IN THE DOLLAR STANDARD. Introduction. Chapter 5. The New Paradigm Recession. Chapter 6. The Fate of the Dollar: Half a Trillion Reasons Why the Dollar Must Collapse. Chapter 7. Asset Bubbles and Banking Crises. Chapter 8. Deflation. PART THREE: GLOBAL RECESSION AND THE DEATH OF MONETARISM. Introduction. Chapter 9. Global Recession: Why, When, and How Hard? Chapter 10. The End of the Era of Export-led Growth. Chapter 11. Monetarism is Drowning. PART FOUR: POLICY TOOLS FOR THE 21ST CENTURY. Introduction. Chapter 12. A Global Minimum Wage. Chapter 13. Controlling the Global Money Supply. PART FIVE: THE EVOLUTION OF A CRISIS. Introduction. Chapter 14. Deflation: The Red’s Greatest Fear. Chapter 15. The Run on the Dollar, 2003. Chapter 16. The Great Reflation. Chapter 17. Understanding Interest Rates in the Age of Paper Money. Chapter 18. What's Worrying The Chairman. Chapter 19. After Reflation, Deflation. Chapter 20. Bernankeism. Conclusion. Index.

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Book SynopsisThe credit card industry today is a multi-trillion dollar business that employs hundreds of thousands of people across the globe and impacts literally billions of people every day. Yet there is no comprehensive book or reference material available in the marketplace that provides fact-based perspectives on how to develop and manage a successful card business - despite the significant demand from all those involved in the industry. Developing and Managing a Successful Payment Cards Business offers information, analysis, observations, perspectives and advice on developing and managing a card business. There is comprehensive coverage of all areas including card business strategy, product development, customer acquisition and retention strategies, and product marketing techniques. The book also reviews underlying infrastructure components relating to operations and systems including risk management and transaction processing and suggests improvement techniques. There is detailed discussTrade Review'The payment cards business has grown enormously in the last two decades, and today must represent one of the largest and most profitable verticals in global financial services industry. And the growth potential has not likely been exhausted, because consumers continue to opt for cards, instead of cash and check, in virtually every part of the world, both emerging markets and developed economies alike. At the same time, however, the cards business has found itself increasingly wrapped in controversy, especially as merchants have taken issue with rising cost. For a large, growing, and controversial industry, Slawsky and Zafar's new book provides a blueprint that explains how the business actually works and as such should interest a wide range of readers, including financial services executives and managers, as well as investors, regulators, and policy-makers.' Kenneth Posner, Morgan Stanley, NY, U.S.A 'Delivers an excellent topology of the business of payments. The authors provide a comprehensive review of the history and the future of payments. Its practical approach to cards makes it a valuable resource for people in the cards business and for those beginning their careers in cards. The authors’ insight on what constitutes an effective marketing strategy provides an excellent framework for card issuers to develop and execute strategies that will deliver results. A must-read'. Joe DiVanna, Director, Maris Strategies Limited ’This book offers an excellent overview of the cards industry. It describes with clarity industry best practices in all key areas.’ Michael Lafferty, Chairman, Lafferty □Group ’If you want to understand the credit card business, read this book. If you are in the credit card business and want to improve your market share, sales and profitability and only have time to read one book, read this one. It is like a mini MBA in credit card management and covers all aspects of the card business - from marketing and customer management, opeTable of ContentsContents: Introduction to payment cards; How payment cards work; Organizational design; Marketing and strategy; Existing account marketing; Customer management; Operations management; Fraud prevention and control; Collections; Infrastructure and delivery channels; Profitability; Business process analysis; Future of payment cards; Alternative payment products; Securitization; Index.

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Book SynopsisBee-Lean Chew is an experienced member of the forensic accounting team at Wilder Coe Ltd., a director of the Network of Independent Forensic Accountants and a provider of CPD training to solicitors and fellow business professionals. The author trained with Wilder Coe Ltd., becoming partner in 2005. A Chartered Accountant, Ms Chew has a Law degree from Kent University, a Master's degree in Finance from the University of Strathclyde and is an ICAEW-accredited Forensic Accountant.Table of Contents Chapter - 01: The forensic accountant in practice [Fiona Hotston Moore and Simon Martin]; Chapter - 02: The forensic accountant as expert witness [Niamh M Brennan]; Chapter - 03: Forensic accountancy and taxation [Tim Cook]; Chapter - 04: Forensic accountancy and fraud [David Muggridge]; Chapter - 05: Fraud prevention [Steven Toms]; Chapter - 06: Professional negligence [Adam Stronach and Christopher Hatcher]; Chapter - 07: Valuations [Brian Spencer and Christopher Hatcher]; Chapter - 08: Audit and financial reporting [Bee-Lean Chew]; Chapter - 09: Crime [Andrew Donaldson and Adam Calvert]; Chapter - 10: Commercial disputes [Kate Hart]; Chapter - 11: Forensic accountancy in matrimonial cases [Kate Hart]; Chapter - 12: Insolvency [Norman Cowan]; Chapter - 13: Personal injury [Christopher Hatcher]

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Book SynopsisCovers such topics as prior evidence on corporate annual reports, research methodology and the demographics of the corporate shareholder, investors' investment objectives and their information sources, and the readership and usefulness of corporate financial statements.Table of ContentsPrior evidence on corporate annual reports; research methodology and the demographics of the corporate shareholder; investors' investment objectives and their information sources; the readership and usefulness of corporate financial statements; the readership and usefulness of non-financial statement items; the effect of sophistication on the use of annual reports; the shareholder's demand for inproved reporting; the expectation gap and the auditor; shareholder's use of the auditor's report; shareholder views on auditor independence and conflict of interest; shareholder perceptions of the financial reporting responsibilities of auditors, management and Board of Directors; the future of the Corporate Annual Report in responding to the shareholder's demand for accountability; appendix a - surveying methods and results; appendix b - chi-square test for nonresponse bias.

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Book SynopsisThe whole quality of auditing and financial reporting has been called into question since Enron, World Com and other crimes became public knowledge. These papers expose the hypocrisy of paying lip service to the reporting of environmental disasters and the need for improvement.Table of ContentsThe identification, measurement, and reporting of corporate social impacts - past, present, and future, M.J. Epstein; legitimacy and the internet - an examination of corporate web page environmental disclosures, D.M. Patten, W. Crampton; impact of the Clean Air Act of 1990 on pollution disclosures by electric utilities, M. Freedman et al; financial analysts' views of the value of environmental information, H.G. Hunt III, D. Jacque Grinnell; the impact of corporate social responsibility on the informativeness of earnings and accounting choices, A. Riahi-Belkaoui; an assessment of the quality of environmental disclosure themes, W.D. Walden, A.J. Stagliano.

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Book SynopsisAgricultural subsidies in grains, cotton, milk, sugar, tobacco, honey, wool, and peanuts are analysed in this examination of US farm policy. Looking at such programs as food stamps, crop insurance, subsidized credit, trade credit, trade subsidies and import restrictions, this historical perspective argues that these subsidies ultimately redistribute wealth to powerful agricultural interests.Trade ReviewThis skillful, readable and comprehensive book is an unapologetic, well-written argument to limit government in all aspects of agriculture. —American Journal of Agriculture Economics

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Sustainability accounting and accountability is fundamental in the pursuit of low-carbon and less unsustainable societies. Highlighting that accounting, organisations and economic systems are intertwined with sustainability, the book discusses how sustainability accounting and accountability broaden the spectrum of information used in organisational decision-making and in evaluating organisational success. The authors show how sustainability accounting can prove to be transformative, but only if critical questions are sufficiently addressed.This new and completely rewritten edition provides a comprehensive overview of sustainability accounting and accountability. Relevant global context and key concepts are outlined providing the reader with the conceptual resources to engage with the topic. Drawing on the most recent research and topical practical insights, the book discusses a wide variety of sustainability accounting and accountability topics, including management a

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Book SynopsisThis book presents fundamental aspects of financial accounting, its basic terminology, the accounting process and the preparation of a journal, ledger, trial balance, income statement and balance sheet. It also introduces complex topics like tools of management accounting, sustainability reporting and financial reporting. The volume comprehensively delivers lessons and examples to build strong accounting skills guiding readers to learn how to read and analyse financial statements, and discusses the theoretical concepts followed by elaborating on the accounting process in a simple and lucid style. Numerical examples and case studies support every discussion involving a conceptual difficulty. Several charts and diagrams have been included to shed light on the finer points of the subject to make it easily comprehensible.This book would be useful to students, researchers and teachers of financial accounting, accounting, statistics and business management. The book would also be u

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Book SynopsisPhysicians want to care for patients, not spend their time documenting in an electronic medical record. Physicians are always complaining about the amount of time they spend documenting patient care in support of medical billing through an evaluation and management coding system (E/M). New guidelines were created to lessen the time a physician/provider spends on documentation as many of the mandatory elements are no longer a requirement for calculating a code level. Previously an E/M (evaluation and management) note required documentation of history, exam, and medical decision-making with required elements in each component to support a level for payment. If an element was missing, the level of service was not supported; therefore, the code was lowered, resulting in a lower reimbursement for the physician/provider. The new guidelines eliminated the requirement of History and Exam as part of the calculation of a code level. Yes, an appropriate history and exam are required, this supports good patient care, but when it comes to reimbursement, they are no longer part of the picture.The overall system is not difficult, if time is taken to understand the elements and how they are applied in the documentation. Documentation is a âœword gameâ always has been, the authorsâ focus is to show what words to use to lessen the time but still convey the complexity of the patientâs condition, and how the physician/provider determines a treatment plan which includes the risk to the patient to satisfy the Coding guidelines initiated by Medicare and American Medical Association.This book evaluates the new guidelines and brings them into prospective so physicians/providers/coders can easily understand how to document and calculate the level of service for reimbursement. This is not a cumbersome book or complicated, but straight to the point. The main goal of the book is to educate physicians, nurses, and coders on what documentation is really required and what has just become habit over the last 30 years.

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Book SynopsisSuitable for exams until December 2024

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Book SynopsisSuitable for exams from December 2024

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Book SynopsisSuitable for exams until December 2026

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Book SynopsisSuitable for exams until December 2026

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Book SynopsisGain a deeper understanding of Asian financial reporting and how to detect irregularities The Asian region, and particularly China, is becoming a hotbed of investment activity. There have been quite a few accounting scandals in Asia in the recent years now rivaling those we have seen in the Americas and Europe. Assessing potential or active overseas investments requires reliance on financial statements, the full parameters of which may vary from region to region. To effectively analyze statements, it is necessary to first understand the framework underlying these financial statements and then lay out a protocol for detecting irregularities. It''s impossible to create and implement a practical plan without a deeper knowledge of the various factors at play. Asian Statement Analysis: Detecting Financial Irregularities provides a framework for analysis that makes irregularities stand out. Authors Chin Hwee Tan and Thomas R. Robinson discuss international financialTrade Review"Written by Tan Chin Hwee, the founding partner in Asia for Apollo Global Management, a leading US$162 billion global alternative investor, among the top three largest in the world; and Tom Robinson, professor of accounting and head of education at the CFA Institute, the book offers a practical framework for performing forensic financial analysis and detecting accounting irregularities." - Daniel Yu, The Asset "But what if investors were armed with practical tips on what to look for in assessing companies--espeically avoiding the dodgy ones (and maybe even profiting by taking a short sale position)? Here is where Asian Financial Statement Analysis: Detecting Financial Irregularities may become the seminal book that equips investors with what to look out for when assessing investment opportunities in Asia." - Daniel Yu, The Asset "Tan and Robinson write that corporate governance has been the Achilles' heel for minority equity shareholders in Asia. Despite being publicly traded, they say that many companies are sitll effectively controlled by the founder or his family; there is nothing inherently wrong with this, but the real winners in many companies are not the minority shareholders. Investors in this region, therefore, will need to be extra vigilant and this book goes a long way in helping strengthen their position." - Daniel Yu, The AssetTable of ContentsForeword xi Genesis of This Book xiii Acknowledgments xv Introduction 1 Why Focus on Scandals in Asia? 2 How This Book is Organized 4 As You Begin 5 Notes 5 Chapter 1 A Framework for Evaluating Financial Irregularities 7 Articulation of Financial Statements 8 Accruals and Deferrals 12 Typical Accounting Games 13 Parting Comments 22 Note 22 References 22 Chapter 2 Detecting Overstated Earnings 23 Aggressive Revenue Recognition 24 Understatement or Deferral of Expenses 29 Classification of Non-Operating Income 31 Classification of Non-Operating Expenses 31 Parting Comments 32 Case Studies 33 Longtop Financial 33 Sino-Forest 37 Oriental Century 42 References 46 Chapter 3 Detecting Overstated Financial Position 47 Excluding Both Assets and Liabilities 49 Other Off-Balance-Sheet Financing/Liabilities 53 Overstating Assets 54 Parting Comments 59 Case Studies 60 RINO International Corp. 60 Olympus 66 Oceanus 69 Notes 72 References 72 Chapter 4 Detecting Earnings Management 73 Accruals and Deferrals Revisited 74 Accounts Receivable (Accrued Revenue) and the Allowance for Doubtful Accounts 75 Deferred (Unearned) Revenue 80 Accrued and Deferred (Prepaid) Expenses 80 Deferred Taxes 81 Contingencies and Reserves 86 Parting Comments 87 Case Studies 88 Harbin Electric 89 West China Cement 98 China Biotics 101 References 105 Chapter 5 Detecting Overstated Operating Cash Flows 107 Understanding the Cash Flow Statement 108 Using Cash Flow to Assess the Quality of Earnings 113 Cash Flow Games 116 Parting Comments 118 Case Studies 118 Renhe Commercial Holdings 118 Duoyuan Global Water 123 Winsway Coking Coal Holdings 131 References 136 Chapter 6 Evaluating Corporate Governance and Related-Party Issues 137 Board Governance and Independent Directors 138 Shareowner Rights 139 Interlocking Ownership or Directorships 140 Related-Party Transactions 140 Excessive Compensation 142 Personal Use or Expropriation of Assets 143 Lack of Transparency 143 Auditor Issues 143 Parting Comments 144 Case Studies 146 China Valves Tech 146 PUDA Coal 149 Sino-Environment Technology Group Limited 153 Note 157 References 157 Chapter 7 Summary and Guidance 159 Putting It All Together 160 A Recipe for Detecting Cooked Books 163 Parting Comments 168 Case Studies 168 Celltrion, Inc. 169 Real Gold Mining 170 Fibrechem Technologies Ltd. 175 References 177 About the Authors 179 Index 181

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Book SynopsisA must-have reference for financial advisors In step-by-step detail, Success as a Financial Advisor For Dummies covers how a current or would-be financial advisor can maximize their professional success through a series of behaviors, activities, and specific client-centric value propositions. In a time when federal regulators are changing the landscape on the standard of care that financial services clients should expect from their advisors, this book affords professionals insight on how they can be evolving their practices to align with the regulatory and technological trends currently underway. Inside, you'll find out how a financial advisor can be a true fiduciary, how to compete against the growing field of robo-advisors, and how the passive investing trend is actually all about being an active investor. Additionally, you'll discover time-tested advice on building and focusing on client relationships, having a top advisor mindset, and much more. Master the seven core competencieTable of ContentsIntroduction 1 About This Book 1 Foolish Assumptions 3 Icons Used in This Book 3 Where to Go from Here 4 Part 1: Getting Started as a Financial Advisor 5 Chapter 1: Looking at the Big Picture 7 Understanding What a Financial Advisor Does (or Should Do) 8 Evaluating Yourself: Do You Have What It Takes? 9 Do you have the right personality? 10 What’s driving you to consider this career? 10 What are your qualifications? 11 Deciding Whether to Fly Solo or Work in a Firm 12 Weighing the pros and cons of working in a firm 13 Considering the option of operating as a lone wolf 14 Thinking about starting your own firm 15 Taking Inventory: What You Need to Know 16 Complying with financial regulations 16 Brushing up on budgeting basics 17 Wrapping your brain around asset management 17 Knowing what liability management entails 18 Looking at what estate planning involves 18 Identifying key tax issues 19 Comprehending behavioral finance 19 Providing Superior Service to Your Clients 20 Performing your due diligence 20 Creating personalized financial plans 20 Teaming up for superior service 21 Creating a tiered service model 21 Assessing your performance as a financial advisor 22 Growing Your Client Base 23 Winning lifelong clients 23 Marketing your services 23 Teaming up with colleagues 23 Moving Up: Starting Your Own Firm 24 Getting started 24 Sharing revenue (or not) 25 Planning your exit strategy 26 Chapter 2: Deciding Whether You’re Geared to Be a Financial Advisor 27 Evaluating Your Personality Traits 28 Do you like to teach? 28 Are you patient and supportive? 29 Are you willing to advocate for your clients? 29 Are you humble? 31 Are you well-connected? 31 Are you hungry for knowledge? 32 Questioning Your Motivations 32 Making a commitment to deliver value 33 Avoiding the siren call of commissioned sales 33 Balancing Leadership and Service 34 Embracing your leadership role 34 Maintaining a service-oriented mindset 35 Chapter 3: Performing a Self Background Check 37 Choosing a Career Path 38 Getting started fresh out of college 38 Changing careers from within the industry 39 Changing careers from outside the industry 40 Capitalizing on Your Personal Experience 41 Taking advantage of your childhood memories 42 Dealing with your own financial challenges 42 Helping others manage their finances 43 Evaluating Your Financial Position 43 Gauging your financial stability 44 Recognizing the risks of financial instability 45 Chapter 4: Deciding to Work for a Firm or Build Your Own Practice 47 Knowing Your Options 48 Hiring in as an employee of an existing firm 50 Setting out on your own as an independent financial advisor 52 Scoping out hybrid models 53 Investigating Different Revenue Models 53 Understanding the fee-only model 54 Collecting asset-based fees and commissions 56 Checking out the commission-only compensation model 56 Understanding how firm managers get paid 57 Getting On-the-Job Training as an Employee 58 Deciding where to go for your field training 58 Using internships to find the right fit 59 Finding Employment as an Independent Contractor 59 Affiliating with an independent broker/dealer 59 Finding work with an insurance-company-owned broker/dealer 60 Becoming a Registered Investment Advisor 61 Chapter 5: Surveying the Regulatory Landscape: The Fiduciary Standard 63 Familiarizing Yourself with Your Role as Financial Advisor 64 Recognizing the Confusion over Obligations and Care Standards 64 Sifting through the Clouds of Bureaucracy 67 Considering federal rules and regulations (DOL, SEC, FINRA) 67 Looking at state rules and regulations 70 Can you call yourself a financial advisor? 71 Governing Itself: Industry Organizations Weigh In 72 Recognizing that change comes from within 73 Taking the fiduciary pledge 73 Looking to the Future 74 Part 2: Mastering Core Competencies 77 Chapter 6: Pursuing Professional Development 79 Identifying the Core Competencies 80 Asset management 80 Liability management 81 Budgeting 82 Estate planning 82 Taxation 82 Behavioral finance 83 Getting a Formal Education 83 The American College of Financial Services 84 CFA Institute 84 CFP Board 86 The Institute of Business and Finance (IBF) 86 Obtaining Your Licenses to Practice 87 Financial Industry Regulatory Authority (FINRA) 87 National Association of Insurance Commissioners (NAIC) 88 Applying Certifications across the Financial Advisory Spectrum 89 Embracing Continuing Education 90 Chapter 7: Getting Budgeting under Your Belt 91 Guiding Clients on Household Budgeting 91 Estimating income 92 Identifying and estimating expenses 92 Shaking the piggy bank: Savings 96 Establishing spending and savings guidelines 97 Exploring Helpful Technology Tools 97 Leveraging the Power of Auto Pay and Payroll Deductions 98 Chapter 8: Brushing Up on Asset Management 99 Developing a Client’s Investment Policy Statement 100 Exploring the client’s goals and objectives 101 Defining your duties and responsibilities 103 Establishing portfolio selection guidelines 103 Concurring on a rebalancing frequency 108 Setting parameters for performance monitoring and reporting 108 Agreeing on an Investment Philosophy 109 Active, passive, or somewhere in between 109 Individual securities versus packaged products 111 Cautioning Clients on “Hot Money” Investments 115 Comparing Revenue/Compensation Models 115 Asset-based fees 116 Commissions and sales charges 116 Chapter 9: Delving into Liability Management 117 Assessing a Client’s Risk Profile 118 Following a formal process 118 Using the income replacement approach 124 Taking the needs-based approach 125 Reviewing Insurance Lines and Products 125 Life insurance 126 Disability insurance 127 Health insurance 127 Homeowner’s insurance 128 Auto insurance 128 Liability insurance 128 Annuities 129 Comparing Revenue/Compensation Models 130 Collecting a one-time, up-front commission 130 Getting paid in installments 131 Embracing transparency 131 Chapter 10: Excelling in Estate Planning 133 Addressing Estate Planning Essentials 134 Naming heirs 135 Naming beneficiaries 136 Planning for business succession or continuity 136 Accounting for estate taxes 138 Managing estate liquidity (or lack thereof) 139 Considering capital market conditions at time of death 140 Preparing for Estate Settlement Complications 140 Handling differences over a closely held business 141 Anticipating a struggle for control 142 Helping Clients Pass along Values, Not Just Wealth 143 Checking out donor-advised funds 143 Considering private family foundations 144 Brushing up on CRTs and CLTs 144 Teaming Up with Estate Planning Attorneys and Family Accountants 145 Chapter 11: Tackling Taxation 147 Reminding Yourself That You’re Not an Accountant 148 Adding a Tax Advisor to the Team 149 Managing Capital Gains: Don’t Let the Tail Wag the Dog 151 Using Tax-Deferred Accounts to Maximize Compounding Returns 152 Exploring Tax-Free and Tax-Lighter Investments 153 Buying municipal bonds 154 Investing in tax-exempt securities 155 Slashing Taxes with Retirement, College, and Health Savings Accounts 156 Contributing to a retirement plan 156 Socking away money in college funds 157 Trimming taxes with an HSA 158 Taking a Nibble Out of Taxes with Charitable Contributions 158 Chapter 12: Getting Up to Speed on Behavioral Finance 161 Recognizing Irrational Factors That Drive Thinking and Behaviors 162 Myopic loss aversion 162 Confirmation bias 162 Mental accounting 163 Illusion of control 163 Recent extrapolation bias 164 Hindsight bias 164 Herd mentality 164 Muting Irrational Thoughts and Behaviors 165 Appealing to the Rational Side of Your Client’s Brain 166 Step 1: Acknowledge your client’s fear 166 Step 2: Tell your client to take a deep, cleansing breath and smile 166 Step 3: Introduce a rational argument 166 Step 4: Have your client explain the strategy back to you 167 Riding Out Market Cycles: Balancing Fear and Greed 167 Calming common fears 168 Reining in greed 168 Part 3: Providing Superior, Personalized Service 169 Chapter 13: Formalizing Your Client Due Diligence Process 171 Deciding Whether You Want Clients or Consumers 172 Serving consumers as a broker/agent 172 Serving clients as a fiduciary financial advisor 173 Considering the Factors That Really Matter 174 Mastering the Four As of Due Diligence 176 Assessment 176 Audit 178 Action 179 Alignment 180 Chapter 14: Developing a Personalized Financial Plan 183 Obtaining Your Client’s Input 184 Going Deep and Broad with Every Client 185 Copy 186 Capital 187 Consequences 188 Outlining a Client’s Financial Plan 189 Focusing on cash flow 190 Considering savings and investment goals 190 Accounting for taxes 191 Addressing insurance needs 192 Connecting the financial plan to the estate plan 193 Connecting the financial plan to the client’s business succession plan 193 Making Your Job Easier with Tools and Guides 194 Reviewing the Plan Regularly 196 Chapter 15: Offering Collaborative Value-Added Advice 197 Recognizing the Benefits of a Collaborative Approach 198 Aligning your compensation model with that of other professional advisors 199 Delivering optimal results 199 Creating a system of checks and balances 201 Leveraging the power of specialization 201 Collaborating to Serve Your Clients Better 203 Teaming up with your client 203 Partnering with your client’s lawyer 204 Working with your client’s accountant 205 Working on your follow-through 206 Taking on the Role of Your Team’s Quarterback 206 Acting as the central point of contact 206 Maintaining separation among advisors base on their roles 207 Shopping solutions 208 Chapter 16: Adjusting Your Service Level to Different Clients 209 Building a Tiered Client Service Model 210 Scaling services to different clients 210 Giving your best clients concierge care 211 Scoring Your Clients 212 Considering demographics 213 Weighing psychographics 215 Assigning clients to service level brackets 216 Rewarding Quality Clients 217 Hosting special events 217 Inviting clients to breakfast or lunch 218 Recognizing the need to budget your time 219 Chapter 17: Benchmarking Performance 221 Measuring Portfolio Success Against a Chosen Index 222 Tuning in to the clients’ mindset 222 Recognizing the limitations of stock market indexes 223 Using a blended benchmark 223 Keeping it simple with your clients 224 Riding the Personal Benchmark Trend 225 Establishing the client’s personal benchmark 226 Using the personal benchmark to keep calm a client’s nerves 227 Using both relative and absolute benchmarks 229 Tailoring Performance to Each Client’s Needs 230 Own It! Don’t Make Excuses for Poor Performance 231 Part 4: Building Your Clientele 233 Chapter 18: Earning Clients and Making a Career for a Lifetime 235 Adding Value before Asking for Referrals 236 Making a choice: Sales or consulting 237 Differentiating yourself as a trusted advisor 237 Speaking to Clients in Plain English 238 Showcasing Your Value Proposition 240 Ask clients about their past experiences 241 Write your elevator pitch 241 Quantify your value and qualify your expectations 242 Being Humble and Honored to Serve Your Clients 243 Chapter 19: Raising Your Profile with Networking and Marketing 245 Establishing an Online Presence 246 Creating a website as your home base 246 Hosting your own blog 248 Becoming active on LinkedIn 249 Creating a Facebook page for your practice 250 Claiming your business in online directories 251 Making the most of your certifications 252 Getting Connected in the Real World 252 Discovering what you’re passionate about 253 Getting involved in a charitable cause 254 Serving on boards 254 Developing cross-industry professional alliances 255 Building Your Own Sales Force 256 Marketing to fellow financial advisors 256 Leveraging home office leadership personnel 257 Encouraging and rewarding client referrals 258 Promoting Yourself over the Long Haul 259 Chapter 20: Teaming Up to Build Synergies 261 Choosing Your Preferred Role: Lone Wolf or Leader of the Pack 262 Considering the pros of flying solo 262 Considering the cons of flying solo 263 Collaborating with Other Financial Advisors 266 Teaming up for joint-work opportunities 266 Sharing unique techniques and skills 269 Finding your niche: Minder, finder, or grinder? 270 Exploring broader practice partnerships 271 Part 5: Running Your Practice as a Business 273 Chapter 21: Transitioning from Solo Practitioner to Business Owner 275 Gut Check: Deciding Whether Starting Your Own Firm Is the Right Move for You 276 Determining how tethered you are to your current firm 276 Considering a change in roles and costs 277 Putting All the Pieces in Place 278 Structuring your business 278 Choosing a broker/dealer platform 279 Sketching your organizational chart 279 Staffing your firm 281 Dotting your i’s and crossing your t’s 281 Getting someone focused on rainmaking 282 Battling client attrition 283 Measuring Success in Terms of Profit Margin 283 Achieving Growth through Mergers and Acquisitions 284 Planning Your Exit Strategy 284 Bailing out with a buyout 285 Choosing a successor to take over 285 Handling your own estate planning 285 Avoiding the “die at your desk” scenario 286 Chapter 22: Structuring Your Firm as a Well-Oiled Machine 287 Organizing Your Business by Department 288 Minding the business: Administration 288 Finding clients: Business development 289 Grinding out the work: Client service 291 Identifying Business Development’s Focus Areas 292 Getting your firm’s foot in the door with 401K plans 292 Expanding opportunities through corporate benefit programs 293 Networking through trusts and estates 293 Easing the burden of household’s financial manager 294 Delegating Responsibilities to Client Service Associates 294 Assigning Administrative/Operational Responsibilities 295 Managing the office 295 Harnessing the power of client relationship management (CRM) software 296 Coordinating the workflow for new clients 297 Outsourcing accounting and legal 298 Chapter 23: Divvying Up Your Business: Equity Participation 299 Keeping Some Profits in the Firm 300 Adopting a Founder Mentality 301 Playing the role of visionary 301 Serving as the primary rainmaker 302 Avoiding the temptation to deal with day-to-day operations 303 Offering Equity Buy-in to Team Members 304 Being selective 304 Putting your agreements in writing 305 Proceeding When Equity Ownership Doesn’t Matter 305 Maximizing annual compensation to advisors 306 Having no desire to ever sell the business 306 Chapter 24: Ensuring Business Continuity and Planning for Succession 309 Creating a Hit-by-the-Bus Business Continuity Plan 310 Protecting Your Heirs’ Interests with a Buy-Sell Agreement 312 Planning for Succession 314 Picking a successor with the right credentials 314 Addressing personality and values compatibility 315 Considering transferable skills 316 Sizing up a candidate’s leadership potential 316 Accounting for loyalty 317 Part 6: The Part of Tens 319 Chapter 25: Ten Tips for Being a Successful Financial Advisor 321 Let Your Conscience Be Your Guide 321 Beware of False Profits 322 Protect Your Clients from Predators 323 Don’t Use Big Words 323 Remember That Good Service Makes Up for Other Shortcomings 324 Be Active in a Community Cause 324 Be Eager to Acquire New Information and to Share What You Know 325 Focus More on Skills, Less on Tools 325 Appreciate the Trust Your Clients Place in You 326 Always Ask: What If I’m Wrong? 326 Chapter 26: Ten Business-Building Activities 327 Schedule Client Review Meetings 328 Keep a Log of Friends and Family That Your Clients Mention 328 Sponsor One Charitable Event Each Year 329 Break Bread with Your Best Clients 329 Be Responsive: Practice the Same-Day Rule 329 Attend Every Party You’re Invited to 330 Have an Elevator Pitch 330 Welcome All Prospects, Large or Small 330 Stop Selling and Start Telling Stories 331 Be Active on Social Media 331 Appendix: Financial Advisor Resources 333 Index 343

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Book SynopsisTable of ContentsIntroduction 1 About This Book 2 Foolish Assumptions 2 Icons Used in This Book 3 Beyond the Book 3 Where to Go from Here 4 Part 1: Getting a Financial Accounting Initiation 5 Chapter 1: Seeing the Big Picture of Financial Accounting 7 Knowing the Purposes of Financial Accounting 8 Preparing financial statements 8 Showing historic performance 10 Providing results for the annual report 10 Getting to Know Financial Accounting Users 11 Identifying the most likely users 11 Recognizing their needs 11 Providing information for decision-making 12 Respecting the Key Characteristics of Financial Accounting Information 13 Relevance 13 Reliability 14 Comparability 14 Consistency 15 Accepting Financial Accounting Constraints 17 Considering Your Ethical Responsibilities 18 Following the accountant’s code of conduct 18 Having integrity 19 Maintaining objectivity 19 Achieving independence 20 Introducing the Conceptual Framework of Financial Accounting 21 Chapter 2: Introducing the Big Three Financial Statements 23 Gauging the Health of a Business through Its Financials 24 Reporting Assets and Claims: The Balance Sheet 25 Realizing why the balance sheet is “classified” 26 Studying the balance sheet components 26 Seeing an example of a classified balance sheet 29 Posting Profit or Loss: The Income Statement 30 Keeping a scorecard for business activity 30 Studying the income statement components 31 Seeing an example of an income statement 33 Showing the Money: The Statement of Cash Flows 33 Tracking sources and uses of cash 34 Studying sections of the cash flow statement 34 Seeing a short statement of cash flows 35 Chapter 3: Running the Numbers for Success 37 Identifying Accounting Issues and Solutions 38 Selecting a Business Entity 38 Advantages of the sole proprietorship 39 Owners’ capital 39 Limiting liability with the S Corporation 40 Learning about recognition options 41 Reporting for Small Businesses 42 Preparing reports 42 Analyzing reporting 45 Identifying cost issues 46 Managing Cash 48 Identifying cost issues 48 Improving cash flow 53 Chapter 4: Acronym Alert! Setting the Standards for Financial Accounting 55 Walking through the Origins of Number Crunching 56 Knowing the Role of the American Institute of Certified Public Accountants (AICPA) 58 ASB audit and attestation standards 59 AICPA Code of Professional Conduct 60 Following Regulatory Issues 61 The U.S Securities and Exchange Commission (SEC) 62 The Sarbanes-Oxley Act of 2002 (SOX) 63 The Public Company Accounting Oversight Board (PCAOB) 64 Getting to Know the Financial Accounting Standards Board (FASB) 65 Understanding generally accepted accounting principles (GAAP) 66 Looking online for the FASB’s standards 67 Part 2: Reviewing Some Accounting Basics 69 Chapter 5: Booking It: The Process Behind Financial Accounting 71 Shedding Some Light on Bookkeeping 72 Analyzing the Effect of Business Transactions 73 Working the fundamental accounting equation 73 Getting familiar with accounts 74 Defining debits and credits 76 Learning about the transaction methodology 77 Defining Journals 78 Using journals to record cash transactions 78 Recording accrual transactions 82 Learning about other journals 84 Seeing examples of common journal entries 86 Bringing It All Together in the Ledger 88 Realizing what a ledger is 88 Posting to the ledgers 89 Viewing an example of a general ledger 89 Recognizing the purpose of the trial balance 91 Chapter 6: Focusing on Accounting Methods and Concepts 93 Distinguishing between Key Accounting Methods 94 The cash basis 94 The accrual basis 95 Sorting through Standards for Other Types of Accounting 96 Managerial accounting 96 Not-for-profit accounting 97 Governmental accounting 98 International accounting 98 Considering the Conceptual Framework of Financial Accounting 99 The objective of financial reporting 100 Characteristics of accounting information 101 Elements of the financial statements 101 Financial statement measurements 102 Part 3: Spending Quality Time with the Balance Sheet 103 Chapter 7: Assessing the Balance Sheet’s Asset Section 105 Homing in on Historic Cost 106 Learning What Makes an Asset Current 106 Cash 107 Short-term investments 108 Accounts receivable 110 Notes receivable 111 Inventory 112 Prepaid expenses 113 Keeping Track of Noncurrent (Long-Term) Assets 114 Meeting the tangibles: Property, plant, and equipment (PP&E) 114 Investigating intangible assets 116 Studying the Asset Section of the Balance Sheet 118 Chapter 8: Digging for Debt in the Liabilities Section 121 Seeing How Businesses Account for Liabilities 122 Keeping Current Liabilities under Control 123 Accounts payable 124 Payroll and taxes 125 Unearned revenue 127 Other short-term liabilities 128 Planning for Long-Term Obligations 130 Managing long-term debt 131 Anticipating contingent liabilities 132 Accounting for Bond Issuances 133 Understanding bond basics 133 Accounting for bonds sold at face value 134 Addressing interest payments 134 Getting and amortizing a premium 134 Reporting a bond discount 135 Retiring and converting bonds 136 Chapter 9: Letting Owners Know Where They Stand: The Equity Section 137 Distinguishing Different Types of Business Entities 138 Sole proprietorship 138 Partnership 139 Corporate 140 Defining Paid-in Capital 141 Recording Retained Earnings 143 Spotting Reductions to Stockholders’ Equity 143 Paying dividends 144 Buying treasury stock 146 Learning about Stock Splits 146 Accounting for Accumulated Other Comprehensive Income 147 Seeing a Sample Equity Section of the Balance Sheet 148 Part 4: Investigating Income and Cash Flow 149 Chapter 10: Searching for Profit or Loss on the Income Statement 151 Presenting the Income Statement in One of Two Ways 152 Recognizing the single-step format 152 Breaking it out with the multiple-step format 153 Defining Different Types of Businesses 154 Providing a service 154 Merchandising to the public 154 Manufacturing a product 155 Examining Income Statement Sections 155 Two types of revenue 156 Contra revenue accounts 157 Cost of goods sold 159 Gross profit 162 Operating expenses 162 Heading toward the bottom line 163 Earnings per share 165 Watching Out for Unusual Income Statement Items 166 Discontinued operations 167 Noncontrolling subsidiary interests 168 Arriving at the Final Product 168 Chapter 11: Following the Money by Studying Cash Flow 171 Understanding the Difference between Cash and Profit 172 Seeing how noncash transactions affect profit 172 Distinguishing costs from expenses 173 Realizing the Purpose of the Statement of Cash Flows 173 Walking through the Cash Flow Sections 175 Figuring cash operating results 175 Showing cash investing transactions 178 Accounting for financing activities 180 Recognizing Methods for Preparing the Statement of Cash Flows 181 Using the direct method 181 Starting indirectly with net income 182 Interpreting the Statement of Cash Flows 183 Looking at Two Sample Statements of Cash Flows 183 Chapter 12: Examining Depreciation Cost Flow Assumptions 187 Discovering How Depreciation Affects All Financial Statements 188 Mastering Costs 189 Defining costs and expenses in the business world 190 Satisfying the matching principle 190 Identifying product and period costs 191 Learning which costs are depreciated 191 Distinguishing among Depreciation Methods 194 Walking through the straight-line method 196 Accelerating by using declining balance 196 Calculating sum-of-the-years’-digits 197 Using the units-of-production method 198 Seeing how the methods compare 198 Figuring partial year depreciation 199 Preparing a Depreciation Schedule 200 Chapter 13: Learning about Inventory Cost Flow Assumptions 203 Discovering How Inventory Valuation Affects the Financial Statements 204 Do Service Companies Have Inventory? 205 Classifying Inventory Types 206 Accounting for merchandising company inventory 206 Accounting for manufacturing company inventory 208 Getting to Know Inventory Valuation Methods 210 Specific identification 211 Weighted average 211 First-in, first out (FIFO) 211 Last-in, first-out (LIFO) 212 Comparing inventory cost-flow assumptions 212 Preparing an Inventory Worksheet 216 Part 5: Analyzing the Financial Statements 217 Chapter 14: Using Ratios and Other Tools 219 Learning about Liquidity Measurements 220 Figuring the current ratio 221 Putting the acid test to work 222 Working with working capital 223 Measuring Profitability 224 Explaining trend analysis 224 Focusing on return on investment 225 Homing in on return on equity 227 Exploring Activity Measures 227 Accounts receivable turnover 228 Inventory turnover 228 Number of days’ sales in accounts receivable 229 Analyzing Financial Statements 230 Using horizontal analysis 230 Comparing with vertical analysis 231 Using Common Size Financial Statements 232 Chapter 15: Got Your Dictionary Ready? Reading Explanatory Notes and Disclosures 235 Realizing How Corporations Should Govern Themselves 236 Identifying Corporate Characteristics 236 Reviewing Common Explanatory Notes 239 Leveling the playing field among financial statements 239 Explaining significant accounting policies 240 Looking for important event disclosures 244 Putting the Onus on the Preparer 249 Chapter 16: Studying the Report to the Shareholders 251 Why Private and Public Companies Treat Annual Reports Differently 252 Fulfilling Three Purposes 253 Serving a marketing and PR function 253 Stating financial performance and goals 253 Meeting regulatory requirements 254 Reading the Annual Report to Shareholders 254 Meeting the chair of the board of directors 255 Highlighting key financial data 255 Touting company achievements 257 Looking into the future 257 Getting to know key management and board members 258 Walking through the Form 10-K 259 Facing page: Identifying the affected company 259 Part I: Learning more about the registrant 260 Part II: Revealing the company’s financial performance 260 Part III: Identifying management and corporate governance 264 Part IV: Exhibits, financial statement schedules, and signature 264 Part 6: Feeling Brave? Tackling More Advanced Financial Accounting Topics 265 Chapter 17: Accounting for Emerging Issues 267 Reviewing Different Technological Effects on Financial Accounting 268 Working in a digital world 268 Discussing transitional recording 272 Introducing the Pharmaceutical Industry 273 Booking pharmaceutical transactions 274 Crediting Research and Development Costs 279 Walking through the background of research and development (R&D) 280 Explaining the effect on relevant industries 281 Realizing constraints for costs and expenses 281 Reporting in the books 282 Recognizing Losses 282 Different types of business interruptions 282 Properly expensing or accruing costs 284 Chapter 18: Accounting for Income Taxes 285 Identifying Financial Income versus Taxable Income 286 Figuring out financial income 287 Taking a look at taxable income 287 Explaining why the two incomes differ 289 Taking Advantage of Net Operating Losses 292 Identifying loss carrybacks 292 Understanding loss carryforwards 293 Presenting a Side-by-Side Comparison of Book and Tax Calculations 294 Taking Deferred Tax Liabilities or Assets to the Balance Sheet 295 Chapter 19: Accounting for Leases 297 Reviewing Lease Basics 298 Identifying leasing advantages 298 Introducing the lessor and lessee 299 Accounting for the Lessee 300 Looking at operating leases 300 Walking through finance leases 302 Presenting a finance lease on the financial statements 304 Accounting for the Lessor 305 Operating leases 305 Direct financing leases 306 Sales-type leases 307 Chapter 20: Reporting Changes in Methods and the Correction of Errors 309 Coping with Accounting Changes 310 Reporting changes in accounting principles 310 Changing a company’s estimates 316 Understanding changes in reporting entities 318 Dealing with Errors 319 Reviewing common types of errors 319 Letting counterbalancing errors lie 320 Restating the financial statements 321 Part 7: The Part of Tens 323 Chapter 21: Ten Financial Accounting Shenanigans 325 Reporting Revenue in the Wrong Period 325 Reporting Fictitious Income 326 Increasing Income with Misleading Events 327 Shifting Expenses Between Periods 327 Misclassifying Cash 328 Failing to Record Liabilities 329 Reporting Liabilities in the Wrong Period 329 Not Disclosing Related-Party Transactions 330 Capitalizing Normal Operating Expenses 331 Deleting Transactions 331 Chapter 22: Ten Accounting Career Opportunities 333 Certified Public Accountant 334 Consultant 335 Corporate Accountant 335 Forensic Accountant 336 Government Accountant 337 Information Technology Auditor 338 Income Tax Accountant 338 International Accountant 339 Non-Accounting Accountant 339 Not-for-Profit Accountant 340 Index 341

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Book SynopsisTable of Contents1 Introduction to Financial Statements 1-1 Knowing the Numbers: Columbia Sportswear Company 1-1 1.1 Business Organization and Accounting Information Uses 1-2 Forms of Business Organization 1-3 Users and Uses of Financial Information 1-4 Data Analytics 1-6 Ethics in Financial Reporting 1-7 1.2 The Three Types of Business Activity 1-8 Financing Activities 1-9 Investing Activities 1-9 Operating Activities 1-10 1.3 The Four Financial Statements 1-11 Income Statement 1-12 Retained Earnings Statement 1-13 Balance Sheet 1-14 Statement of Cash Flows 1-16 Interrelationships of Statements 1-17 Elements of an Annual Report 1-20 Appendix 1A: Career Opportunities in Accounting 1-23 “Show Me the Money” 1-24 2 A Further Look at Financial Statements 2-1 Just Fooling Around?: The Motley Fool 2-2 2.1 The Classified Balance Sheet 2-3 Current Assets 2-3 Long-Term Investments 2-5 Property, Plant, and Equipment 2-5 Intangible Assets 2-5 Current Liabilities 2-7 Long-Term Liabilities 2-7 Stockholders’ Equity 2-7 2.2 Analyzing the Financial Statements Using Ratios 2-8 Ratio Analysis 2-8 Using the Income Statement 2-9 Using a Classified Balance Sheet 2-10 2.3 Financial Reporting Concepts 2-14 The Standard-Setting Environment 2-14 Qualities of Useful Information 2-16 Assumptions in Financial Reporting 2-17 Principles in Financial Reporting 2-18 Cost Constraint 2-18 3 The Accounting Information System 3-1 Accidents Happen: MF Global Holdings Ltd 3-1 3.1 Using the Accounting Equation to Analyze Transactions 3-3 Accounting Transactions 3-3 Analyzing Transactions 3-4 Summary of Transactions 3-10 3.2 Accounts, Debits, and Credits 3-11 Debits and Credits 3-11 Debit and Credit Procedures 3-12 Stockholders’ Equity Relationships 3-15 Summary of Debit/Credit Rules 3-16 3.3 Using a Journal 3-17 The Recording Process 3-17 The Journal 3-18 3.4 The Ledger and Posting 3-20 The Ledger 3-20 Chart of Accounts 3-21 Posting 3-21 The Recording Process Illustrated 3-22 Summary Illustration of Journalizing and Posting 3-28 3.5 The Trial Balance 3-30 Limitations of a Trial Balance 3-31 4 Accrual Accounting Concepts 4-1 Keeping Track of Groupons: Groupon 4-1 4.1 Accrual-Basis Accounting and Adjusting Entries 4-2 The Revenue Recognition Principle 4-3 The Expense Recognition Principle 4-4 Accrual versus Cash Basis of Accounting 4-5 The Need for Adjusting Entries 4-5 Types of Adjusting Entries 4-6 4.2 Adjusting Entries for Deferrals 4-7 Prepaid Expenses 4-7 Unearned Revenues 4-12 4.3 Adjusting Entries for Accruals 4-15 Accrued Revenues 4-15 Accrued Expenses 4-17 Summary of Basic Relationships 4-20 4.4 The Adjusted Trial Balance and Closing Entries 4-23 Preparing the Adjusted Trial Balance 4-23 Preparing Financial Statements 4-24 Quality of Earnings 4-24 Closing the Books 4-27 Summary of the Accounting Cycle 4-30 Appendix 4A: Using a Worksheet 4-34 5 Merchandising Operations and the Multiple-Step Income Statement 5-1 Buy Now, Vote Later: REI 5-1 5.1 Merchandising Operations and Inventory Systems 5-2 Operating Cycles 5-3 Flow of Costs 5-4 5.2 Recording Purchases Under a Perpetual System 5-6 Freight Costs 5-8 Purchase Returns and Allowances 5-9 Purchase Discounts 5-10 Summary of Purchasing Transactions 5-11 5.3 Recording Sales Under a Perpetual System 5-11 Sales Returns and Allowances 5-13 Sales Discounts 5-14 Data Analytics and Credit Sales 5-15 5.4 Preparing the Multiple-Step Income Statement 5-16 Single-Step Income Statement 5-16 Multiple-Step Income Statement 5-17 5.5 Cost of Goods Sold Under a Periodic System 5-21 5.6 Gross Profit Rate and Profit Margin 5-23 Gross Profit Rate 5-23 Profit Margin 5-24 Appendix 5A: Periodic Inventory System 5-27 Recording Merchandise Transactions 5-27 Recording Purchases of Merchandise 5-28 Freight Costs 5-28 Recording Sales of Merchandise 5-28 Comparison of Entries—Perpetual vs. Periodic 5-29 Appendix 5B: Adjusting Entries for Credit Sales with Returns and Allowances 5-30 Data Analytics in Action 5-52 6 Reporting and Analyzing Inventory 6-1 “Where Is That Spare Bulldozer Blade?”: Caterpillar 6-1 6.1 Classifying and Determining Inventory 6-2 Classifying Inventory 6-2 Determining Inventory Quantities 6-4 6.2 Inventory Methods and Financial Effects 6-7 Specific Identification 6-7 Cost Flow Assumptions 6-8 Financial Statement and Tax Effects of Cost Flow Methods 6-13 Using Inventory Cost Flow Methods Consistently 6-15 6.3 Inventory Presentation and Analysis 6-17 Presentation 6-17 Lower-of-Cost-or-Net Realizable Value 6-17 Financial Analysis and Data Analytics 6-18 Adjustments for LIFO Reserve 6-21 Appendix 6A: Inventory Cost Flow Methods in Perpetual Inventory Systems 6-24 First-In, First-Out (FIFO) 6-24 Last-In, First-Out (LIFO) 6-25 Average-Cost 6-26 Appendix 6B: Effects of Inventory Errors 6-27 Income Statement Effects 6-27 Balance Sheet Effects 6-28 Data Analytics in Action 6-49 7 Fraud, Internal Control, and Cash 7-1 Minding the Money in Madison: Barriques 7-1 7.1 Fraud and Internal Control 7-3 Fraud 7-3 The Sarbanes-Oxley Act 7-3 Internal Control 7-4 Principles of Internal Control Activities 7-5 Data Analytics and Internal Controls 7-10 Limitations of Internal Control 7-11 7.2 Cash Controls 7-12 Cash Receipts Controls 7-12 Cash Disbursements Controls 7-14 Petty Cash Fund 7-16 7.3 Control Features of a Bank Account 7-17 Electronic Banking 7-18 Bank Statements 7-18 Reconciling the Bank Account 7-20 7.4 Reporting Cash 7-25 Cash Equivalents 7-26 Restricted Cash 7-26 Managing and Monitoring Cash 7-27 Cash Budgeting 7-29 Appendix 7A: Operation of a Petty Cash Fund 7-32 Establishing the Petty Cash Fund 7-33 Making Payments from the Petty Cash Fund 7-33 Replenishing the Petty Cash Fund 7-34 Data Analytics in Action 7-56 8 Reporting and Analyzing Receivables 8-1 What’s Cooking?: Nike 8-1 8.1 Recognition of Accounts Receivable 8-3 Types of Receivables 8-3 Recognizing Accounts Receivable 8-3 8.2 Valuation and Disposition of Accounts Receivable 8-5 Valuing Accounts Receivable 8-5 Disposing of Accounts Receivable 8-13 8.3 Notes Receivable 8-15 Determining the Maturity Date 8-16 Computing Interest 8-16 Recognizing Notes Receivable 8-17 Valuing Notes Receivable 8-17 Disposing of Notes Receivable 8-17 8.4 Receivables Presentation and Management 8-20 Financial Statement Presentation of Receivables 8-20 Managing Receivables 8-21 Evaluating Liquidity of Receivables 8-23 Accelerating Cash Receipts 8-24 Data Analytics and Receivables Management 8-25 Data Analytics in Action 8-46 9 Reporting and Analyzing Long-Lived Assets 9-1 A Tale of Two Airlines: American Airlines 9-1 9.1 Plant Asset Expenditures 9-3 Determining the Cost of Plant Assets 9-3 Expenditures During Useful Life 9-6 To Buy or Lease? 9-7 9.2 Depreciation Methods 9-8 Factors in Computing Depreciation 9-9 Depreciation Methods 9-9 Revising Periodic Depreciation 9-14 Impairments 9-15 9.3 Plant Asset Disposals 9-16 Sale of Plant Assets 9-16 Retirement of Plant Assets 9-18 9.4 Intangible Assets 9-19 Accounting for Intangible Assets 9-19 Types of Intangible Assets 9-20 Research and Development Costs 9-22 9.5 Statement Presentation and Analysis 9-23 Presentation 9-23 Analysis 9-25 Appendix 9A: Other Depreciation Methods 9-30 Declining-Balance Method 9-30 Units-of-Activity Method 9-31 Data Analytics in Action 9-55 10 Reporting and Analyzing Liabilities 10-1 And Then There Were Two: Maxwell Car Company 10-1 10.1 Accounting for Current Liabilities 10-3 What Is a Current Liability? 10-3 Notes Payable 10-3 Sales Taxes Payable 10-4 Unearned Revenues 10-5 Current Maturities of Long-Term Debt 10-6 Payroll and Payroll Taxes Payable 10-6 10.2 Characteristics of Bonds 10-9 Types of Bonds 10-9 Issuing Procedures 10-10 Bond Trading 10-10 Determining the Market Price of a Bond 10-11 10.3 Accounting for Bond Transactions 10-14 Issuing Bonds at Face Value 10-14 Discount or Premium on Bonds 10-14 Issuing Bonds at a Discount 10-15 Issuing Bonds at a Premium 10-17 Redeeming Bonds at Maturity 10-19 Redeeming Bonds Before Maturity 10-19 10.4 Presentation and Analysis 10-20 Presentation 10-20 Analysis 10-22 Appendix 10A: Straight-Line Amortization 10-26 Amortizing Bond Discount 10-26 Amortizing Bond Premium 10-28 Appendix 10B: Effective-Interest Amortization 10-29 Amortizing Bond Discount 10-29 Amortizing Bond Premium 10-31 Appendix 10C: Accounting for Long-Term Notes Payable 10-32 11 Reporting and Analyzing Stockholders’ Equity 11-1 Oh Well, I Guess I’ll Get Rich: Facebook 11-1 11.1 Corporate Form of Organization 11-3 Characteristics of a Corporation 11-3 Forming a Corporation 11-6 Stockholder Rights 11-7 Stock Issue Considerations 11-8 Corporate Capital 11-10 11.2 Accounting for Common, Preferred, and Treasury Stock 11-12 Accounting for Common Stock 11-12 Accounting for Preferred Stock 11-13 Accounting for Treasury Stock 11-14 11.3 Accounting for Dividends and Stock Splits 11-16 Cash Dividends 11-16 Dividend Preferences 11-19 Stock Dividends 11-21 Stock Splits 11-22 11.4 Presentation and Analysis 11-24 Retained Earnings 11-24 Retained Earnings Restrictions 11-25 Balance Sheet Presentation of Stockholders’ Equity 11-26 Analysis of Stockholders’ Equity 11-28 Debt versus Equity Decision 11-29 Appendix 11A: Entries for Stock Dividends 11-32 Data Analytics in Action 11-55 12 Statement of Cash Flows 12-1 Got Cash?: Microsoft 12-2 12.1 Usefulness and Format of the Statement of Cash Flows 12-3 Usefulness of the Statement of Cash Flows 12-3 Classification of Cash Flows 12-3 Significant Noncash Activities 12-4 Format of the Statement of Cash Flows 12-5 12.2 Preparing the Statement of Cash Flows— Indirect Method 12-6 Indirect and Direct Methods 12-7 Indirect Method—Computer Services Company 12-7 Step 1: Operating Activities 12-9 Summary of Conversion to Net Cash Provided by Operating Activities—Indirect Method 12-12 Step 2: Investing and Financing Activities 12-13 Step 3: Net Change in Cash 12-15 12.3 Analyzing the Statement of Cash Flows 12-17 The Corporate Life Cycle 12-17 Free Cash Flow 12-19 Appendix 12A: Statement of Cash Flows—Direct Method 12-22 Step 1: Operating Activities 12-24 Step 2: Investing and Financing Activities 12-28 Step 3: Net Change in Cash 12-30 Appendix 12B: Worksheet for the Indirect Method 12-30 Preparing the Worksheet 12-31 Appendix 12C: Statement of Cash Flows—T-Account Approach 12-35 Data Analytics in Action 12-61 13 Financial Analysis: The Big Picture 13-1 It Pays to Be Patient: Warren Buffett 13-2 13.1 Sustainable Income and Quality of Earnings 13-3 Sustainable Income 13-3 Quality of Earnings 13-7 13.2 Horizontal Analysis and Vertical Analysis 13-9 Horizontal Analysis 13-10 Vertical Analysis 13-12 13.3 Ratio Analysis 13-15 Liquidity Ratios 13-16 Solvency Ratios 13-17 Profitability Ratios 13-17 Financial Analysis and Data Analytics 13-18 Comprehensive Example of Ratio Analysis 13-18 Appendix A Specimen Financial Statements: Apple Inc. A-1 Appendix B Specimen Financial Statements: Columbia Sportswear Company B-1 Appendix C Specimen Financial Statements: Under Armour, Inc. C-1 Appendix D Specimen Financial Statements: Amazon.com, Inc. D-1 Appendix E Specimen Financial Statements: Walmart Inc. E-1 Appendix F Time Value of Money F-1 F.1 Interest and Future Values F-2 Nature of Interest F-2 Future Value of a Single Amount F-3 Future Value of an Annuity F-5 F.2 Present Values F-8 Present Value Variables F-8 Present Value of a Single Amount F-9 Present Value of an Annuity F-11 Time Periods and Discounting F-13 Present Value of a Long-Term Note or Bond F-3 F.3 Capital Budgeting Situations F-16 F.4 Using Technological Tools F-18 Present Value of a Single Sum F-19 Present Value of an Annuity F-20 Future Value of a Single Sum F-21 Future Value of an Annuity F-22 Internal Rate of Return F-22 Useful Applications F-23 Appendix G Reporting and Analyzing Investments G-1 G.1 Accounting for Debt Investments G-2 Why Corporations Invest G-2 Accounting for Debt Investments G-2 G.2 Accounting for Stock Investments G-4 Holdings of Less Than 20% G-5 Holdings Between 20% and 50% G-6 Holdings of More Than 50% G-7 G.3 Reporting Investments in Financial Statements G-9 Debt Securities G-9 Equity Securities G-12 Balance Sheet Presentation G-13 Presentation of Realized and Unrealized Gain or Loss G-14 Company Index I-1 Subject Index I-5 Rapid Review: Chapter Content

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