Advanced Accounting (Twelfth Edition)

Help today’s advanced accounting learners master the theory and practice they need for professional success with Fischer/Taylor/Cheng’s ADVANCED ACCOUNTING, 12E. This leading text offers readers the most authoritative, comprehensive coverage of advanced accounting topics available. This edition explores the latest FASB statements and their impact on consolidations. The authors combine sound theoretical foundations with a hands-on approach using numerous actual examples common in today’s accounting. The text’s proven focus on conceptual understanding and clear presentation style make even the most complex topics approachable. New and revised end-of-chapter questions reinforce major concepts from each chapter and challenge students to expand their critical thinking and reasoning skills. Only ADVANCED ACCOUNTING, 12E uses a horizontal approach to consolidations, the format most commonly used in today’s business world. A trusted preparation resource for the CPA exam, ADVANCED ACCOUNTING, 12E provides the knowledge today’s learners need for ongoing accounting success. Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version. 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