Description
Book SynopsisTable of ContentsPreface v
1 The Development of Accounting Theory 1
The Early History of Accounting 2
Accounting in the United States Since 1930 5
The Role of Ethics in Accounting 22
International Accounting Standards 26
Cases 27
FASB ASC Research 29
Room for Debate 29
2 The Pursuit of the Conceptual Framework 30
The Early Theorists 30
Early Authoritative and Semiauthoritative Attempts to Develop the Conceptual Framework of Accounting 32
Statement on Accounting Theory and Theory Acceptance 38
The FASB’s Conceptual Framework Project 41
International Convergence 66
Cases 74
FASB ASC Research 76
Room for Debate 77
3 International Accounting 78
International Business Accounting Issues 79
The Development of Accounting Systems 79
Preparation of Financial Statements for Foreign Users 81
The International Accounting Standards Committee 81
The Uses of International Accounting Standards 92
The IASC and the IOSCO 94
The IASB Annual Improvements Project 95
IASB–FASB Convergence 96
The Effects of International versus US GAAP Accounting Standards 97
Standards Overload 100
Framework for the Preparation and Presentation of Financial Statements 101
The IASB–FASB Financial Statement Presentation Project 110
Cases 112
FASB ASC Research 114
Room for Debate 114
4 The Status Development and Uses of Financial Reporting 115
The Financial Reporting Environment 115
Research Methodology 118
The Outcomes of Providing Accounting Information 121
The Relationship Among Accounting Research Education and Practice 147
Cases 149
FASB ASC Research 152
Room for Debate 153
5 Income Concepts Revenue Recognition and Other Methods of Reporting 154
The Nature of Income 155
Economic Versus Accounting Income 159
Revenue Recognition 161
Matching 180
Income Recognition Constraints 182
Non- GAAP Measures of Performance 183
Sustainability Reporting 186
Earnings Quality Earnings Management and Fraudulent Financial Reporting 191
International Accounting Standards 197
Cases 203
FASB ASC Research 206
Room for Debate 207
6 Financial Statement I: The Income Statement 208
The Economic Consequences of Financial Reporting 208
Income Statement Elements 208
Statement Format 210
The Value of Corporate Earnings 233
International Accounting Standards 238
Cases 243
FASB ASC Research 246
Room for Debate 246
7 Financial Statements II: The Balance Sheet and the Statement of Cash Flows 247
The Balance Sheet 247
Fair Value Measurements 259
Evaluating a Company’s Financial Position 266
The Statement of Cash Flows 269
Financial Analysis of Cash- Flow Information 279
International Accounting Standards 280
FASB ASC Research 291
Room for Debate 292
8 Working Capital 293
Development of the Working Capital Concept 293
Current Usage 295
Components of Working Capital 295
Working Capital Management 306
International Accounting Standards 314
Cases 316
FASB ASC Research 319
Room for Debate 319
9 Long- Term Assets I: Property Plant and Equipment 321
Property Plant and Equipment 321
Financial Analysis of Property Plant and Equipment 326
Cost Allocation 326
Capital and Revenue Expenditures 329
Recognition and Measurement Issues 330
Impairment of Value 330
Accounting for Asset Retirement Obligations 333
International Accounting Standards 335
Cases 341
FASB ASC Research 345
Room for Debate 346
10 Long- Term Assets II: Investments and Intangibles 347
Investments in Equity Securities 347
Investments in Debt Securities 355
Impairment of Investments in Unsecuritized Debt Including Receivables and Loans 359
The Fair Value Option for Financial Assets 363
Transfers of Financial Assets 364
Cryptocurrency 376
Financial Analysis of Investments and Intangibles 379
International Accounting Standards 379
Cases 390
FASB ASC Research 394
Room for Debate 394
11 Long- Term Liabilities 395
The Definition of Liabilities 395
Recognition and Measurement of Liabilities 396
Debt versus Equity 397
Classification of Long- Term Debt 400
Other Liability Measurement Issues 414
Reference Rate Reform 422
Troubled Debt Restructurings 424
Financial Analysis of Long- Term Debt 426
International Accounting Standards 428
Cases 437
FASB ASC Research 440
Room for Debate 441
12 Accounting for Income Taxes 442
Historical Perspective 442
The Income Tax Allocation Issue 444
Permanent and Temporary Differences 444
Conceptual Issues 448
Alternative Interperiod Tax Allocation Methods 452
Financial Statement Disclosure 460
FIN No. 48 “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB Statement No. 109” 462
The Tax Cuts and Jobs Act of 2017 463
Financial Analysis of Income Taxes 466
International Accounting Standards 469
Cases 472
FASB ASC Research 475
Room for Debate 476
13 Leases 477
Accounting for Leases 478
Subsequent Developments 489
ASU 2016- 02 (FASB ASC 842) 491
Lease Agreements Affected by ASU 2020- 04 Reference Rate Reform 502
Financial Analysis of the Effects of Capitalizing Operating Leases 503
International Accounting Standards 506
Cases 511
FASB ASC Research 516
Room for Debate 517
14 Pensions and Other Postretirement Benefits 518
Historical Perspective 520
Accounting for the Pension Fund 531
The Employee Retirement Income Security Act 531
Other Postretirement Benefits 532
Postemployment Benefits 534
SFAS No. 132 534
SFAS No. 158 534
Financial Analysis of Pension and Other Postretirement Benefits 536
International Accounting Standards 537
Cases 539
FASB ASC Research 543
Room for Debate 544
15 Equity 545
Theories of Equity 545
Definition of Equity 550
The Distinction Between Debt and Equity 551
Reporting Equity 553
Financial Analysis of Stockholders’ Equity 565
International Accounting Standards 567
Cases 569
FASB ASC Research 573
Room for Debate 574
16 Accounting for Multiple Entities 575
Business Combinations 575
Accounting for Business Combinations 576
Consolidations 582
Theories of Consolidation 589
Noncontrolling Interest 590
Drawbacks of Consolidation 593
Special Purpose Acquisition Companies 594
Segment Reporting 596
Foreign Currency Translation 601
International Accounting Standards 609
Cases 621
FASB ASC Research 624
Room for Debate 625
17 Financial Reporting Disclosure Requirements and Ethical Responsibilities 626
Recognition and Measurement Criteria 626
Areas Directly Affected by Existing FASB Standards: Supplementary Information 632
Financial Reporting: Other Means of Financial Reporting 640
All Information Useful for Investment Credit and Similar Decisions: Other Information 643
Securities and Exchange Commission Disclosure Requirements 645
Ethical Responsibilities 655
International Accounting Standards 663
Cases 666
FASB ASC Research 670
Room for Debate 670
Index I- 1
