Advanced Accounting

Preface......Page 5
Acknowledgments......Page 15
About the Authors......Page 16
Brief Contents......Page 17
Contents......Page 18
Part 1: Combined Corporate Entities and Consolidations......Page 25
Ch 1: Business Combinations: New Rules for a Long-Standing Business Practice......Page 27
Economic Advantages of Combinations......Page 28
Acquisition of Control......Page 30
Evolution of Accounting Methods......Page 32
Valuation of Identifiable Assets and Liabilities......Page 38
Tax Issues......Page 47
Required Disclosure......Page 51
Goodwill Accounting after the Acquisition......Page 54
Appendix: Estimating the Value of Goodwill......Page 58
Ch 2: Consolidated Statements: Date of Acquisition......Page 79
Levels of Investment......Page 80
Function of Consolidated Statements......Page 81
Techniques of Consolidation......Page 82
Adjustment of Subsidiary Accounts......Page 85
Determination and Distribution of Excess Schedule......Page 88
Consolidating with a Noncontrolling Interest......Page 93
Preexisting Goodwill......Page 103
Ownership of a Prior Noncontrolling Interest......Page 105
Push-Down Accounting......Page 106
Appendix: Reverse Acquisition......Page 107
Ch 3: Consolidated Statements: Subsequent to Acquisition......Page 141
Accounting for the Investment in a Subsidiary......Page 142
Elimination Procedures......Page 144
Effect of Sophisticated Equity Method on Consolidation......Page 154
Complicated Purchase, Several Distributions of Excess......Page 156
Intraperiod Purchase under the Simple Equity Method......Page 162
Disclosure for an Intraperiod Purchase......Page 164
Summary: Worksheet Technique......Page 165
Goodwill Impairment Losses......Page 166
Appendix A: The Vertical Worksheet......Page 167
Appendix B: Tax-Related Adjustments......Page 168
Ch 4: Intercompany Transactions: Merchandise, Plant Assets, and Notes......Page 229
Intercompany Merchandise Sales......Page 230
Intercompany Plant Asset Sales......Page 238
Intercompany Debt......Page 243
Sophisticated Equity Method: Intercompany Transactions......Page 244
Appendix: Intercompany Profit Eliminations on the Vertical Worksheet......Page 248
Intercompany Investment in Bonds......Page 289
Intercompany Leases......Page 297
Intercompany Transactions Prior to Business Combination......Page 302
Appendix: Intercompany Leases with Unguaranteed Residual Value......Page 303
Consolidated Statement of Cash Flows......Page 349
Consolidated Earnings per Share......Page 357
Taxation of Consolidated Companies......Page 361
Parent Acquisition of Stock Directly from Subsidiary......Page 399
Sale of Parent's Investment in Common Stock......Page 405
Subsidiary Preferred Stock......Page 413
Appendix: Worksheet for a Consolidated Balance Sheet......Page 419
Subsidiary Stock Dividends......Page 459
Subsidiary Sale of Its Own Common Stock......Page 464
Subsidiary Purchase of Its Own Common Stock......Page 470
Indirect Holdings......Page 472
Parent Company Shares Purchased by Subsidiary......Page 478
Special Appendix 1: Accounting for Influential Investments......Page 505
Calculation of Equity Income......Page 506
Tax Effects of Equity Method......Page 508
Unusual Equity Adjustments......Page 510
Disclosure Requirements......Page 512
Fair Value Option......Page 513
Primary Beneficiary......Page 519
Consolidation Procedures, Date of Acquiring Control......Page 520
Consolidation Procedures, Subsequent Periods......Page 521
Part 2: Multinational Accounting and Other Reporting Concerns......Page 531
Ch 9: The International Accounting Environment......Page 533
The Scope of International Business Activities......Page 534
Foreign Currency Transactions......Page 535
Foreign Currency Translation......Page 536
Harmonization of Accounting Standards......Page 538
Convergence to International Accounting Standards......Page 541
Derivatives: Characteristics and Types......Page 546
Accounting for Derivatives That are Designated as a Hedge......Page 556
Disclosures Regarding Derivative Instruments and Hedging Activities......Page 573
Ch 10: Foreign Currency Transactions......Page 583
The International Monetary System......Page 584
Accounting for Foreign Currency Transactions......Page 588
The Exposure to Foreign Currency Exchange Risk and the Use of Derivatives......Page 591
Accounting for Derivatives That are Designated as a Hedge......Page 596
Examples of the Accounting for Fair Value Hedges......Page 600
Examples of the Accounting for Cash Flow Hedges......Page 611
Ch 11: Translation of Foreign Financial Statements......Page 633
Statement of Financial Accounting Standards No. 52......Page 634
Basic Translation Process: Functional Currency to Reporting Currency......Page 646
Remeasured Financial Statements: Foreign Currency to Functional Currency......Page 657
Interim Reporting......Page 693
Disclosures about Segments of an Entity......Page 714
Part 3: Partnerships......Page 735
Characteristics of a Partnership......Page 737
Accounting for Partnership Activities......Page 741
Ch 14: Partnerships: Ownership Changes and Liquidations......Page 761
Ownership Changes......Page 762
Partnership Liquidation......Page 776
Part 4: Governmental and Not-for-Profit Accounting......Page 799
Ch 15: Governmental Accounting: The General Fund and the Account Groups......Page 801
Commercial and Governmental Accounting: A Comparison......Page 802
History of Governmental Financial Reporting......Page 803
Governmental Accounting Structure of Funds......Page 807
Use of Budgetary Accounting......Page 814
Overview of General Fund Procedures......Page 815
Financial Reports of the General Fund......Page 829
Accounting for General Capital Assets and General Long-Term Obligations......Page 831
Review of Entries for the General Fund and Account Groups......Page 836
Appendix: Summary of Accounting Principles......Page 840
Other Governmental Funds......Page 863
Proprietary Funds......Page 879
Fiduciary Funds: Trust and Agency Funds......Page 888
Governmental Accounting-Interactions among Funds......Page 895
Annual Financial Reporting......Page 925
Reporting Entity......Page 927
Highlights and Illustrative Examples of the Reporting Model......Page 928
Practice Converting Funds-Based Statements to Government-Wide Statements......Page 949
Reporting and Auditing Implementation and Issues......Page 956
Ch 18: Accounting for Private Not-for-Profit Organizations......Page 971
Not-for-Profit Organizations......Page 972
Accounting for Private Not-for-Profit Organizations......Page 973
Accounting for Voluntary Health and Welfare Organizations......Page 978
Summary......Page 992
Appendix: Optional Fund Accounting for Voluntary Health and Welfare Organizations......Page 993
Ch 19: Accounting for Not-for-Profit Colleges and Universities and Health Care Organizations......Page 1011
Accounting for Colleges and Universities (Public and Private)......Page 1012
Accounting for Providers of Health Care Services-Governmental and Private......Page 1031
Part 5: Fiduciary Accounting......Page 1065
The Role of Estate Planning......Page 1067
Settling a Probate Estate......Page 1068
Tax Implications of an Estate......Page 1077
Trust Accounting Issues......Page 1084
Ch 21: Debt Restructuring, Corporate Reorganizations, and Liquidations......Page 1097
Relief Procedures Not Requiring Court Action......Page 1098
Solutions Available through the Bankruptcy Code......Page 1106
Preparation of the Statement of Affairs......Page 1111
Preparation of Other Accounting Reports......Page 1114
Comprehensive Annual Financial Report City of Milwaukee, Wisconsin......Page 1127
Index......Page 1151