Wiley GAAP 2005 : Interpretation and Application of Generally Accepted Accounting Principles

by Barry J. Epstein (Russell Novak & Company, LLP); Ralph Nach (American Express Tax and Business Inc.); Ervin L. Black (Bringham Young Univ., Provo, Utah); Patrick R. Delaney (Northern Illinois Univ.)

• ISBN13: 9780471668343
• ISBN10: 0471668346
• Format: Paperback
• Copyright: 2004-01-01
• Publisher: Wiley

Summary

An essential guide for all accountants, CPA candidates, financial managers, and accounting students Amidst a national parade of corporate scandals, accounting professionals require a timely, rock-solid resource that will instill clients and investors with the confidence they have come to expect. The most practical, authoritative guide to GAAP, Wiley GAAP 2005 delivers the most recent developments and analysis of all the generally accepted accounting principles (GAAP) for 2005, restating the original, highly technical pronouncements in easy-to-understand terms while providing battle-tested implementation guidance and real-world examples. Each chapter is composed of a discussion of perspectives and issues, sources of GAAP, a definition of terms, concepts, and rules, as well as examples. Patrick R. Delaney was the Arthur Andersen LLP Alumni Professor of Accountancy and Chair of the Department of Accountancy at Northern Illinois University. Barry J. Epstein (Chicago, Il) is a partner in the firm Robert Novak & Company, LLP. Ralph Nach (Chicago, Il) is a Managing Director with American Express Tax Business Services, Inc. Ervin L. Black, PhD (Provo, UT), is an Associate Professor at Brigham Young University, where he specializes in financial and international accounting and accounting research. Dr. Black has authored or coauthored numerous articles in accounting research journals.

Author Biography

<b>Barry J. Epstein,</b> PhD, CPA, is a partner with Russell Novak &amp; Company, LLP, a Chicago-based firm, where he specializes in technical consultation on accounting and auditing matters and corporate governance, and serves as a consulting and testifying expert for various litigation matters including accountants&#8217; malpractice, contractual dispute resolution, and commercial damages modeling. He has previously served in senior technical and litigation consulting positions with several regional and national CPA firms, as a corporate finance executive, and as a college professor. Dr. Epstein has authored or coauthored six books (including <i>Wiley IAS Interpretation and Application</i>) and several articles, and has previously coauthored a weekly business column for an international newspaper. He has served on several state and national technical committees, including the AICPA&#8217;s Board of Examiners, and served as chair of the Illinois CPA Society&#8217;s senior accounting technical committee. He has also lectured widely on technical accounting and auditing topics over most of his thirty-five year career, which has been primarily in public accounting. Dr. Epstein received his doctorate from the University of Pittsburgh, and holds degrees from DePaul University and the University of Chicago. He is a member of the Illinois CPA Society, the AICPA, and the American Accounting Association. <p> <b>Ralph Nach,</b> CPA, is managing director in charge of technical training in the national office of American Express Tax &amp; Business Services, Inc. Mr. Nach has been a practitioner for over twenty-five years, during which he has specialized in accounting, auditing, and financial reporting issues. Mr. Nach holds a BSBA with honors from the Walter E. Heller School of Business Administration of Roosevelt University in Chicago, and is a CPA in Illinois. Previously Mr. Nach served in capacities including accountant, auditor, technical reviewer, educator, and consultant for several public accounting firms including Arthur Andersen LLP, and taught graduate accounting and finance at Northwestern University. Mr. Nach has coauthored several other books and speaks nationally on accounting, auditing, and financial reporting topics. He is a member of the American Institute of Certified Public Accountants and chairs its Educational Management Exchange Subcommittee (EDMAX). He is also a member of the Illinois CPA Society, where he has served as a chairman and/or member of numerous committees. <p> <b>Ervin L. Black,</b> PhD., is an associate professor in the School of Accountancy and Information Systems, Marriott School of Management, at Brigham Young University, where he specializes in financial and international accounting. Dr. Black has authored or coauthored thirteen articles in accounting research journals, including <i>The Journal of Accounting and Economics, Accounting Horizons, The Journal of Business Finance and Accounting,</i> and <i>The Journal of the American Taxation Association</i>. In addition, he has coauthored chapters on international accounting, and is a coauthor of two textbooks (including <i>International Accounting and Multinational Enterprises</i>, 6th Edition forthcoming, Wiley). Dr. Black received his doctorate from the University of Washington, and holds an MBA and Bachelor of Arts degrees from Brigham Young University. He is a member of the American Accounting Association, European and British Accounting Association, and the International Association for Accounting Education and Research. <p> <b>Patrick R. Delaney,</b> PhD, CPA, was the Arthur Andersen LLP Alumni Professor of Accountancy and Chair of the Department of Accountancy at Northern Illinois University. He received his PhD in Accountancy from the University of Illinois. Professor Delaney served as a Faculty Resident with Arthur Andersen LLP. He was the author of <i>CPA Examination Review</i>, 2-volume and 4-part sets, including the related components of the Wiley CPA preparation system. He was past president of the Rockford Chapter, Institute of Management Accountants; served on Illinois CPA Society Committees (previously as Vice-President and member, Board of Directors; Chairman of Accounting Principles Committee; chair of the Relations with Accounting Educators and Students Committee; and chair of Educator CPA Issues Committee); and had served on numerous other professional committees. He was a member of the American Accounting Association, American Institute of Certified Public Accountants, and the Institute of Management Accountants. Professor Delaney had published in <i>The Accounting Review</i> and was the recipient of NIU&#8217;s Excellence in Teaching Award and the Illinois CPA Society&#8217;s Outstanding Educator Award.

Table of Contents

Authoritative Accounting Pronouncements	x
Researching GAAP Problems	1	(36)
Appendix: Conceptual Framework	25	(12)
Balance Sheet	37	(25)
Statements of Income and Comprehensive Income	62	(37)
Statement of Cash Flows	99	(16)
Cash, Receivables, and Prepaid Expenses	115	(42)
Short-Term Investments and Financial Instruments	157	(62)
Inventory	219	(30)
Appendix A: LIFO Conformity Rule	245	(1)
Appendix B: Task Force on LIFO Inventory	246	(3)
Revenue Recognition---Evolving Principles and Specialized Applications	249	(77)
Revenue Recognition---General Principles	250	(8)
Long-Term Construction Contracts	258	(12)
Service Revenues	270	(6)
Sales When Collection Is Uncertain	276	(7)
Revenue Recognition When Right of Return Exists	283	(3)
Profit Recognition on Real Estate Sales	286	(18)
Real Estate Operations	304	(7)
Franchising: Accounting by Franchisors	311	(4)
Other Special Accounting and Reporting Issues	315	(11)
Long-Lived Assets	326	(69)
Investments	395	(59)
Business Combinations and Consolidated Financial Statements	454	(105)
Current Liabilities and Contingencies	559	(19)
Long-Term Debt	578	(44)
Leases	622	(69)
Appendix: Leveraged Leases	686	(5)
Income Taxes	691	(53)
Appendix A: Accounting for Income Taxes in Interim Periods	730	(12)
Appendix B: Common Permanent and Temporary Differences	742	(2)
Pensions and Other Postretirement Benefits	744	(34)
Stockholders' Equity	778	(87)
Appendix A: Exposure Draft Outstanding	847	(16)
Appendix B: Financial Statement Presentation	863	(2)
Earnings Per Share	865	(22)
Appendix: Comprehensive Example	884	(3)
Interim Reporting	887	(8)
Segment Reporting	895	(10)
Appendix: Comprehensive Illustration	903	(2)
Accounting Changes and Correction of Errors	905	(27)
Appendix A: Accounting Changes in Interim Periods	924	(4)
Appendix B: Exposure Draft Outstanding: Reporting Accounting Changes	928	(4)
Foreign Currency	932	(24)
Appendix: Accounts to Be Remeasured Using Historical Exchange Rates	955	(1)
Personal Financial Statements	956	(7)
Appendix: Hypothetical Set of Personal Financial Statements	960	(3)
Specialized Industry GAAP	963	(110)
Banking and Thrift	965	(20)
Broadcasting	985	(4)
Cable Television	989	(3)
Computer Software Developers	992	(9)
Employee Benefit Plans, Including Pension Funds	1001	(9)
Finance Companies	1010	(4)
Government Contractors	1014	(2)
Insurance	1016	(11)
Investment Companies	1027	(4)
Mortgage Banking	1031	(7)
Motion Pictures	1038	(9)
Not-for-Profit Organizations	1047	(15)
Oil and Gas Producers	1062	(2)
Recording and Music	1064	(2)
Regulated Operations	1066	(5)
Title Plant	1071	(2)
Appendix A: Disclosure Checklist	1073	(39)
Appendix B: International vs. US Accounting Standards	1112	(12)
Index	1124