Financial Accounting with International Financial Reporting Standards, 5th Edition

ISBN-13: 9781119787051 / Angielski / Miękka / 2022 / 912 str.

Paul D. (University of Wisconsin-Milwaukee) Kimmel

Spis treści

1 Accounting in Action 1-1Knowing the Numbers 1-11.1 Accounting Activities and Users 1-3Who Uses Accounting Data 1-4Data Analytics 1-51.2 The Building Blocks of Accounting 1-7Ethics in Financial Reporting 1-7Accounting Standards 1-8Measurement Principles 1-9Assumptions 1-91.3 The Accounting Equation 1-12Assets 1-12Liabilities 1-13Equity 1-131.4 Analyzing Business Transactions 1-14Accounting Transactions 1-15Transaction Analysis 1-16Summary of Transactions 1-211.5 Financial Statements 1-22Income Statement 1-24Retained Earnings Statement 1-24Statement of Financial Position 1-24Statement of Cash Flows 1-25Comprehensive Income Statement 1-25Appendix 1A: Career Opportunities in Accounting 1-27Public Accounting 1-27Private Accounting 1-28Governmental Accounting 1-28Forensic Accounting 1-28A Look at U.S. GAAP 1-482 The Recording Process 2-1Accidents Happen: Bank of Taiwan 2-12.1 Accounts, Debits, and Credits 2-2The Account 2-2Debits and Credits 2-3Equity Relationships 2-7Summary of Debit/Credit Rules 2-72.2 The Journal 2-8The Recording Process 2-8The Journal 2-92.3 The Ledger and Posting 2-11The Ledger 2-11Posting 2-13Chart of Accounts 2-14The Recording Process Illustrated 2-14Summary Illustration of Journalizing and Posting 2-202.4 The Trial Balance 2-22Limitations of a Trial Balance 2-23Locating Errors 2-23Currency Signs and Underlining 2-23A Look at U.S. GAAP 2-473 Adjusting the Accounts 3-1What Was Your Profit? 3-13.1 Accrual-Basis Accounting and Adjusting Entries 3-2Fiscal and Calendar Years 3-3Accrual- versus Cash-Basis Accounting 3-3Recognizing Revenues and Expenses 3-3The Need for Adjusting Entries 3-6Types of Adjusting Entries 3-63.2 Adjusting Entries for Deferrals 3-7Prepaid Expenses 3-7Unearned Revenues 3-113.3 Adjusting Entries for Accruals 3-14Accrued Revenues 3-14Accrued Expenses 3-16Summary of Basic Relationships 3-193.4 Adjusted Trial Balance and Financial Statements 3-22Preparing the Adjusted Trial Balance 3-23Preparing Financial Statements 3-23Appendix 3A: Alternative Treatment of Deferrals 3-26Prepaid Expenses 3-27Unearned Revenues 3-28Summary of Additional Adjustment Relationships 3-29Appendix 3B: Financial Reporting Concepts 3-30Qualities of Useful Information 3-30Assumptions in Financial Reporting 3-31Principles in Financial Reporting 3-31Cost Constraint 3-32A Look at U.S. GAAP 3-584 Completing the Accounting Cycle 4-1Speaking the Same Language: IASB 4-14.1 The Worksheet 4-3Steps in Preparing a Worksheet 4-3Preparing Financial Statements from a Worksheet 4-11Preparing Adjusting Entries from a Worksheet 4-124.2 Closing the Books 4-13Preparing Closing Entries 4-13Posting Closing Entries 4-15Preparing a Post-Closing Trial Balance 4-174.3 The Accounting Cycle and Correcting Entries 4-20Summary of the Accounting Cycle 4-20Reversing Entries--An Optional Step 4-20Correcting Entries--An Avoidable Step 4-204.4 Classified Statement of Financial Position 4-24Intangible Assets 4-25Property, Plant, and Equipment 4-26Long-Term Investments 4-26Current Assets 4-26Equity 4-27Non-Current Liabilities 4-27Current Liabilities 4-28Appendix 4A: Reversing Entries 4-30Reversing Entries Example 4-30A Look at U.S. GAAP 4-595 Accounting for Merchandise Operations 5-1Who Doesn't Shop?: Carrefour 5-15.1 Merchandising Operations and Inventory Systems 5-3Operating Cycles 5-3Flow of Costs 5-45.2 Recording Purchases Under a Perpetual System 5-7Freight Costs 5-8Purchase Returns and Allowances 5-9Purchase Discounts 5-10Summary of Purchasing Transactions 5-115.3 Recording Sales Under a Perpetual System 5-11Sales Returns and Allowances 5-13Sales Discounts 5-14Data Analytics and Credit Sales 5-155.4 The Accounting Cycle for a Merchandising Company 5-16Adjusting Entries 5-16Closing Entries 5-17Summary of Merchandising Entries 5-175.5 Financial Statements for a Merchandiser 5-19Income Statement 5-19Classified Statement of Financial Position 5-23Appendix 5A: Worksheet for a Merchandising Company 5-25Using a Worksheet 5-25Appendix 5B: Periodic Inventory System 5-26Determining Cost of Goods Sold Under a Periodic System 5-27Recording Merchandise Transactions 5-28Recording Purchases of Merchandise 5-28Recording Sales of Merchandise 5-29Journalizing and Posting Closing Entries 5-29Using a Worksheet 5-31Appendix 5C: Adjusting Entries for Credit Sales with Returns and Allowances 5-33Data Analytics in Action 5-54A Look at U.S. GAAP 5-586 Inventories 6-1"Where Is That Spare Bulldozer Blade?":Komatsu 6-16.1 Classifying and Determining Inventory 6-2Classifying Inventory 6-2Determining Inventory Quantities 6-46.2 Inventory Methods and Financial Effects 6-7Specific Identification 6-7Cost Flow Assumptions 6-8Financial Statement and Tax Effects of Cost Flow Methods 6-11Using Inventory Cost Flow Methods Consistently 6-136.3 Effects of Inventory Errors 6-14Income Statement Effects 6-14Statement of Financial Position Effects 6-156.4 Inventory Statement Presentation and Analysis 6-16Presentation 6-16Lower of Cost or Net Realizable Value 6-16Financial Analysis and Data Analytics 6-17Appendix 6A: Inventory Cost Flow Methods in Perpetual Inventory Systems 6-21First-In, First-Out (FIFO) 6-21Average-Cost 6-22Appendix 6B: Estimating Inventories 6-23Gross Profit Method 6-23Retail Inventory Method 6-24Appendix 6C: LIFO Inventory Method 6-25Data Analytics in Action 6-47A Look at U.S. GAAP 6-507 Fraud, Internal Control, and Cash 7-1Minding the Money at Nick's: Nick's Steakhouse and Pizza 7-17.1 Fraud and Internal Control 7-2Fraud 7-3Internal Control 7-3Principles of Internal Control Activities 7-4Data Analytics and Internal Controls 7-10Limitations of Internal Control 7-107.2 Cash Controls 7-11Cash Receipts Controls 7-11Cash Disbursements Controls 7-14Petty Cash Fund 7-167.3 Control Features of a Bank Account 7-19Making Bank Deposits 7-19Writing Checks 7-20Electronic Banking 7-21Bank Statements 7-21Reconciling the Bank Account 7-227.4 Reporting Cash 7-27Cash Equivalents 7-27Restricted Cash 7-28Data Analytics in Action 7-46A Look at U.S. GAAP 7-49Appendix 9A: Exchange of Plant Assets 9-26Loss Treatment 9-27Gain Treatment 9-27Data Analytics in Action 9-47A Look at U.S. GAAP 9-508 Accounting for Receivables 8-1Are You Going to Pay Me--or Not?: BNP Paribas 8-18.1 Recognition of Accounts Receivable 8-2Types of Receivables 8-3Recognizing Accounts Receivable 8-38.2 Valuation and Disposition of Accounts Receivable 8-5Valuing Accounts Receivable 8-5Disposing of Accounts Receivable 8-128.3 Notes Receivable 8-15Determining the Maturity Date 8-16Computing Interest 8-16Recognizing Notes Receivable 8-17Valuing Notes Receivable 8-17Disposing of Notes Receivable 8-178.4 Presentation and Analysis 8-20Presentation 8-20Analysis 8-20Data Analytics and Receivables Management 8-21Data Analytics in Action 8-38A Look at U.S. GAAP 8-419 Plant Assets, Natural Resources, and Intangible Assets 9-1How Much for a Ride to the Beach?: Rent-A-Wreck 9-19.1 Plant Asset Expenditures 9-2Determining the Cost of Plant Assets 9-3Expenditures During Useful Life 9-69.2 Depreciation Methods 9-7Factors in Computing Depreciation 9-8Depreciation Methods 9-9Component Depreciation 9-13Depreciation and Income Taxes 9-14Revaluation of Plant Assets 9-14Revising Periodic Depreciation 9-159.3 Plant Asset Disposals 9-16Retirement of Plant Assets 9-17Sale of Plant Assets 9-189.4 Natural Resources and Intangible Assets 9-19Natural Resources and Depletion 9-20Intangible Assets 9-219.5 Statement Presentation and Analysis 9-25Presentation 9-25Analysis 9-2610 Current Liabilities 10-1Financing His Dreams: Wilbert Murdock 10-110.1 Accounting for Current Liabilities 10-2What Is a Current Liability? 10-2Notes Payable 10-3Value-Added and Sales Taxes Payable 10-4Unearned Revenues 10-5Salaries and Wages 10-6Current Maturities of Long-Term Debt 10-810.2 Reporting and Analyzing Current Liabilities 10-8Reporting Uncertainty 10-8Reporting of Current Liabilities 10-10Analysis of Current Liabilities 10-11A Look at U.S. GAAP 10-2711 Non-Current Liabilities 11-1Are We Living on Borrowed Time? 11-111.1 Overview of Bonds 11-2Types of Bonds 11-3Issuing Procedures 11-3Bond Trading 11-4Determining the Market Price of a Bond 11-511.2 Accounting for Bond Transactions 11-7Issuing Bonds at Face Value 11-7Discount or Premium on Bonds 11-8Issuing Bonds at a Discount 11-9Issuing Bonds at a Premium 11-10Redeeming Bonds 11-1211.3 Accounting for Non-Current Liabilities 11-13Long-Term Notes Payable 11-13Lease Liabilities 11-1511.4 Reporting and Analyzing Non-Current Liabilities 11-16Presentation 11-16Analysis 11-16Debt and Equity Financing 11-17Appendix 11A: Effective-Interest Method of Bond Amortization 11-19Amortizing Bond Discount 11-19Amortizing Bond Premium 11-21Appendix 11B: Straight-Line Amortization 11-22Amortizing Bond Discount 11-22Amortizing Bond Premium 11-23A Look at U.S. GAAP 11-4012 Corporations: Organization, Share Transactions, and Equity 12-1To the Victor Go the Spoils: adidas 12-112.1 The Corporate Form of Organization 12-2Characteristics of a Corporation 12-3Forming a Corporation 12-6Shareholder Rights 12-6Share Issue Considerations 12-8Corporate Capital 12-1012.2 Accounting for Share Transactions 12-12Accounting for Ordinary Shares 12-12Accounting for Preference Shares 12-14Accounting for Treasury Shares 12-1512.3 Accounting for Dividends and Splits 12-19Accounting for Cash Dividends 12-19Dividend Preferences 12-21Accounting for Share Dividends 12-24Accounting for Share Splits 12-2612.4 Reporting and Analyzing Equity 12-28Retained Earnings 12-28Presentation of Statement of Financial Position 12-29Analysis 12-31Appendix 12A: Statement of Changes in Equity 12-32Appendix 12B: Book Value--Another per Share Amount 12-33Book Value per Share 12-33Book Value versus Market Price 12-34Data Analytics in Action 12-58A Look at U.S. GAAP 12-6113 Investments 13-1Playing for Fun and Profit: Sony 13-113.1 Debt Investments 13-2Why Companies Invest 13-3Classification and Measurement of Investments 13-4Accounting for Debt Investments 13-413.2 Share Investments 13-7Holdings of Less than 20% 13-7Holdings Between 20% and 50% 13-9Holdings of More than 50% 13-1013.3 Valuing and Reporting Investments 13-12Categories of Securities 13-12Statement of Financial Position Presentation 13-18Presentation of Realized and Unrealized Gain or Loss 13-19Classified Statement of Financial Position 13-20Appendix 13A: Preparing Consolidated Financial Statements 13-22Consolidated Statement of Financial Position 13-22Consolidated Income Statement 13-26A Look at U.S. GAAP 13-4314 Statement of Cash Flows 14-1What Should We Do with This Cash?: Keyence 14-114.1 Statement of Cash Flows: Usefulness and Format 14-3Usefulness of the Statement of Cash Flows 14-3Classification of Cash Flows 14-3Significant Non-Cash Activities 14-5Format of the Statement of Cash Flows 14-514.2 Preparing the Statement of Cash Flows--Indirect Method 14-7Indirect and Direct Methods 14-7Indirect Method--Computer Services International 14-8Step 1: Operating Activities 14-9Summary of Conversion to Net Cash Provided by Operating Activities--Indirect Method 14-12Step 2: Investing and Financing Activities 14-13Step 3: Net Change in Cash 14-1414.3 Using Cash Flows to Evaluate a Company 14-17Free Cash Flow 14-17Appendix 14A: Statement of Cash Flows--Direct Method 14-19Step 1: Operating Activities 14-21Step 2: Investing and Financing Activities 14-25Step 3: Net Change in Cash 14-26Appendix 14B: Statement of Cash Flows--T-Account Approach 14-26Data Analytics in Action 14-48A Look at U.S. GAAP 14-5115 Financial Analysis: The Big Picture 15-1Making Money the Old-Fashioned Way: Li Ka-shing 15-115.1 Basics of Financial Statement Analysis 15-2Need for Comparative Analysis 15-3Tools of Analysis 15-3Horizontal Analysis 15-3Vertical Analysis 15-615.2 Ratio Analysis 15-9Liquidity Ratios 15-9Profitability Ratios 15-13Solvency Ratios 15-16Summary of Ratios 15-1815.3 Sustainable Income 15-20Discontinued Operations 15-21Changes in Accounting Principle 15-22Comprehensive Income 15-22A Look at U.S. GAAP 15-48Appendix A Specimen Financial Statements: Taiwan Semiconductor Manufacturing Company, Limited A-1Appendix B Specimen Financial Statements: Nestlé SA B-1Appendix C Specimen Financial Statements: Delfi Limited C-1Appendix D Specimen Financial Statements: Apple Inc. D-1Appendix E Time Value of Money E-1E.1 Interest and Future Values E-1Nature of Interest E-1Future Value of a Single Amount E-3Future Value of an Annuity E-5E.2 Present Value Concepts E-7Present Value Variables E-7Present Value of a Single Amount E-8Present Value of an Annuity E-10Time Periods and Discounting E-12Present Value of a Long-Term Note or Bond E-12E.3 Using Financial Calculators E-15Present Value of a Single Sum E-15Present Value of an Annuity E-16Useful Applications of the Financial Calculator E-17Appendix F Accounting for Partnerships F-1F.1 Forming a Partnership F-1Characteristics of Partnerships F-2Organizations with Partnership Characteristics F-3Advantages and Disadvantages of Partnerships F-4The Partnership Agreement F-5Accounting for a Partnership Formation F-5F.2 Accounting for Net Income or Net Loss F-6Dividing Net Income or Net Loss F-6Partnership Financial Statements F-9F.3 Liquidation of a Partnership F-10No Capital Deficiency F-11Capital Deficiency F-12F.4 Admissions and Withdrawals of Partners F-14Admission of a Partner F-15Withdrawal of a Partner F-18Appendix G Subsidiary Ledgers and Special Journals G-1G.1 Subsidiary Ledgers G-1Subsidiary Ledger Example G-2Advantages of Subsidiary Ledgers G-3G.2 Special Journals G-4Sales Journal G-5Cash Receipts Journal G-7Purchases Journal G-11Cash Payments Journal G-13Effects of Special Journals on the General Journal G-16Cybersecurity: A Final Comment G-17Subject Index I-1Company Index I-13