Financial Accounting Theory and Analysis: Text Readings and Cases, 8th Edition

by Richard G. Schroeder (Univ. of North Carolina at Charlotte ); Myrtle W. Clark (Univ. of Kentucky); Jack M. Cathey (Univ. of North Carolina at Charlotte)

• ISBN13: 9780471652434
• ISBN10: 0471652431
• Edition: 8th
• Format: Paperback
• Copyright: 2005-01-01
• Publisher: WILEY

Summary

Updated, refocused, and revised, this Eighth Edition of ACCOUNTING THEORY AND ANALYSIS will help you build strong critical thinking skills and a sound theoretical background, so you can evaluate accounting practice in today\'s increasingly global world economy. The text\'s unique and timely collection of cases covers all major areas of accounting and shows how the latest accounting standards impact decision making.

Table of Contents

Preface	iii
1 THE DEVELOPMENT OF ACCOUNTING THEORY	1	(29)
The Early History of Accounting	2	(3)
Accounting in the United States since 1930	5	(11)
The Evolution of the Phrase "Generally Accepted Accounting Principles"	16	(2)
The Business Reporting Research Project	18	(1)
The Role of Ethics in Accounting	19	(5)
International Accounting Standards	24	(1)
Financial Accounting Research System	25	(1)
Summary	26	(1)
Cases	26	(2)
FARS Research	28	(1)
Room for Debate	29	(1)
Recommended Additional Readings	29	(1)
2 THE PURSUIT OF THE CONCEPTUAL FRAMEWORK	30	(40)
The Early Theorists	30	(3)
Early Authoritative and Semiauthoritative Organizational Attempts to Develop the Conceptual Framework of Accounting	33	(12)
The FASB's Conceptual Framework Project	45	(13)
Principles-Based versus Rules-Based Accounting Standards	58	(5)
Summary	63	(1)
Cases	63	(4)
FARS Research	67	(1)
Room for Debate	68	(1)
Recommended Additional Readings	68	(2)
3 INTERNATIONAL ACCOUNTING	70	(31)
International Business Accounting Issues	71	(1)
The Development of Accounting Systems	71	(6)
The International Accounting Standards Committee	77	(6)
Revising the IASB's Constitution	83	(2)
The Uses of International Accounting Standards	85	(1)
Current Issues	86	(5)
Framework for the Preparation and Presentation of Financial Statements	91	(3)
IAS No. 1	94	(2)
Summary	96	(1)
Cases	96	(2)
FARS Research	98	(1)
Room for Debate	98	(1)
Recommended Additional Readings	99	(2)
4 RESEARCH METHODOLOGY AND THEORIES ON THE USES OF ACCOUNTING INFORMATION	101	(25)
Research Methodology	102	(3)
The Outcomes of Providing Accounting Information	105	(14)
The Relationship Among Research, Education, and Practice	119	(1)
Summary	120	(1)
Cases	121	(2)
FARS Research-Agency Theory	123	(1)
Room for Debate	124	(1)
Recommended Additional Readings	124	(2)
5 INCOME CONCEPTS	126	(35)
The Nature of Income	128	(5)
Income Recognition	133	(14)
Earnings Quality, Earnings Management, and Fraudulent Financial Reporting	147	(6)
Summary	153	(1)
Cases	154	(4)
FARS Research	158	(1)
Room for Debate	159	(1)
Recommended Additional Readings	159	(2)
6 FINANCIAL STATEMENTS I: THE INCOME STATEMENT	161	(46)
The Economic Consequences of Financial Reporting	161	(1)
Income Statement Elements	162	(1)
Statement Format	163	(25)
The Value of Corporate Earnings	188	(5)
International Accounting Standards	193	(3)
Summary	196	(1)
Cases	197	(7)
FARS Research	204	(1)
Room for Debate	205	(1)
Recommended Additional Readings	205	(2)
7 FINANCIAL STATEMENTS II: THE BALANCE SHEET AND THE STATEMENT OF CASH FLOWS	207	(36)
The Balance Sheet	208	(5)
Assets	213	(3)
Liabilities	216	(3)
Evaluating a Company's Financial Position	219	(4)
The Statement of Cash Flows	223	(10)
Financial Analysis of Cash Flow Information	233	(1)
International Accounting Standards	234	(2)
Summary	236	(1)
Cases	237	(4)
FARS Research	241	(1)
Room for Debate	241	(1)
Recommended Additional Readings	242	(1)
8 WORKING CAPITAL	243	(30)
Development of the Working Capital Concept	243	(2)
Current Usage	245	(1)
Components of Working Capital	246	(1)
Current Assets	247	(10)
Current Liabilities	257	(1)
Financial Analysis of a Company's Working Capital Position	258	(6)
International Accounting Standards	264	(2)
Summary	266	(1)
Cases	266	(4)
FARS Research	270	(1)
Room for Debate	271	(1)
Recommended Additional Readings	271	(2)
9 LONG-TERM ASSETS I: PROPERTY, PLANT, AND EQUIPMENT	273	(31)
Property, Plant, and Equipment	273	(6)
Financial Analysis of Property, Plant, and Equipment	279	(1)
Cost Allocation	280	(1)
Depreciation	280	(4)
Capital and Revenue Expenditures	284	(1)
Recognition and Measurement Issues	284	(1)
Impairment of Value	285	(3)
Accounting for Asset Retirement Obligations	288	(3)
International Accounting Standards	291	(6)
Summary	297	(1)
Cases	297	(5)
FARS Research	302	(1)
Room for Debate	302	(1)
Recommended Additional Readings	303	(1)
10 LONG-TERM ASSETS II: INVESTMENTS AND INTANGIBLES	304	(38)
Investments in Equity Securities	304	(8)
Investments in Debt Securities	312	(3)
Permanent Decline in Fair Value	315	(1)
Impairment of Investments in Unsecuritized Debt	315	(2)
Transfers of Financial Assets	317	(1)
Intangibles	318	(10)
International Accounting Standards	328	(5)
Summary	333	(1)
Cases	333	(6)
FARS Research	339	(1)
Room for Debate	340	(1)
Recommended Additional Readings	340	(2)
11 LONG-TERM LIABILITIES	342	(41)
The Definition of Liabilities	343	(1)
Recognition and Measurement of Liabilities	344	(1)
Debt versus Equity	345	(24)
Financial Analysis of Long-Term Debt	369	(3)
International Accounting Standards	372	(2)
Summary	374	(1)
Cases	374	(6)
FARS Research	380	(1)
Room for Debate	381	(1)
Recommended Additional Readings	381	(2)
12 ACCOUNTING FOR INCOME TAXES	383	(33)
Historical Perspective	383	(2)
The Income Tax Allocation Issue	385	(1)
Permanent and Temporary Differences	386	(8)
Alternative Interperiod Tax Allocation Methods	394	(7)
SFAS No. 109	401	(5)
Financial Analysis of Income Taxes	406	(3)
International Accounting Standards	409	(1)
Summary	409	(1)
Cases	410	(4)
FARS Research	414	(1)
Room for Debate	415	(1)
Recommended Additional Readings	415	(1)
13 LEASES	416	(29)
Criteria for Classifying Leases	419	(1)
Accounting and Reporting by Lessees under SFAS No. 13	420	(12)
Financial Analysis of Leases	432	(3)
International Accounting Standards	435	(1)
Summary	436	(1)
Cases	436	(6)
FARS Research	442	(1)
Room for Debate	443	(1)
Recommended Additional Readings	443	(2)
14 PENSIONS AND OTHER POSTRETIREMENT BENEFITS	445	(25)
Historical Perspective	447	(9)
Accounting for the Pension Fund	456	(1)
The Employee Retirement Income Security Act	457	(1)
Other Postretirement Benefits	457	(3)
Financial Analysis of Retirement Benefits	460	(3)
International Accounting Standards	463	(2)
Summary	465	(1)
Cases	465	(3)
FARS Research	468	(1)
Room for Debate	468	(1)
Recommended Additional Readings	469	(1)
15 EQUITY	470	(34)
Theories of Equity	471	(7)
Definition of Equity	478	(1)
Reporting Equity	479	(13)
Financial Analysis of Stockholders' Equity	492	(3)
International Accounting Standards	495	(1)
Summary	495	(1)
Cases	495	(6)
FARS Research	501	(1)
Room for Debate	502	(1)
Recommended Additional Readings	502	(2)
16 ACCOUNTING FOR MULTIPLE ENTITIES	504	(38)
Business Combinations	504	(1)
Accounting for Business Combinations	505	(5)
Consolidations	510	(3)
Theories of Consolidation	513	(1)
Noncontrolling Interest	514	(3)
Drawbacks of Consolidation	517	(1)
Special Purpose Entities	518	(1)
Segment Reporting	519	(3)
Foreign Currency Translation	522	(9)
International Accounting Standards	531	(4)
Summary	535	(1)
Cases	536	(3)
FARS Research	539	(1)
Room for Debate	540	(1)
Recommended Additional Readings	541	(1)
17 FINANCIAL REPORTING DISCLOSURE REQUIREMENTS AND ETHICAL RESPONSIBILITIES	542	(35)
Recognition and Measurement Criteria	542	(4)
Areas Directly Affected by Existing FASB Standards-Supplementary Information	546	(4)
Financial Reporting-Other Means of Financial Reporting	550	(2)
All Information Useful for Investment, Credit, and Similar Decisions-Other Information	552	(3)
Securities and Exchange Commission	555	(6)
Ethical Responsibilities	561	(6)
International Accounting Standards	567	(1)
Summary	568	(1)
Cases	568	(6)
FARS Research	574	(1)
Room for Debate	575	(1)
Recommended Additional Readings	575	(2)
Index	577