We're sorry, but eCampus.com doesn't work properly without JavaScript.
Either your device does not support JavaScript or you do not have JavaScript enabled.
How to enable JavaScript in your browser.
Need help? Call 1-855-252-4222
Note: Supplemental materials are not guaranteed with Rental or Used book purchases.
Purchase Benefits
What is included with this book?
This is the unbound, loose-leaf version of Intermediate Accounting, 17th Edition, Volume 2. This book is written by industry thought leaders, Kieso, Weygandt, and Warfield and is developed around one simple proposition: create great accountants. Upholding industry standards, this edition incorporates new data analytics content and up-to-date coverage of leases, revenue recognition, financial instruments, and US GAAP & IFRS. While maintaining its reputation for accuracy, comprehensiveness, and accessibility, Intermediate Accounting drives results by helping students build professional competencies through reliable problem material.
15 Stockholders’ Equity 15-1
It’s a Global Market 15-1
Corporate Capital 15-3
Corporate Form 15-3
What Do the Numbers Mean? 1209 North Orange Street 15-3
Components of Stockholders’ Equity 15-5
Issuance of Stock 15-6
What Do the Numbers Mean? The Case of the Disappearing Receivable 15-9
Preferred Stock 15-10
What Do the Numbers Mean? A Class (B) Act 15-12
Reacquisition of Shares 15-12
Purchase of Treasury Stock 15-14
Sale of Treasury Stock 15-15
Retiring Treasury Stock 15-16
What Do the Numbers Mean? Buybacks—Good or Bad? 15-16
Dividend Policy 15-17
Financial Condition and Dividend Distributions 15-17
Types of Dividends 15-18
Stock Dividends and Stock Splits 15-21
What Do the Numbers Mean? Splitsville 15-23
Presentation and Analysis of Stockholders’ Equity 15-25
Presentation 15-25
Analysis 15-27
Appendix 15A: Dividend Preferences and Book Value per Share 15-29
Dividend Preferences 15-29
Book Value per Share 15-30
Analytics in Action 15-51
FAS B Codification and Exercises 15-52
IFRS Insights 15-52
16 Dilutive Securities and Earnings per Share 16-1
Kicking the Habit 16-1
Dilutive Securities 16-3
Debt and Equity 16-3
Accounting for Convertible Debt 16-3
Convertible Preferred Stock 16-5
What Do the Numbers Mean? How Low Can You Go? 16-6
Stock Warrants 16-6
Stock Warrants Issued with Other Securities 16-7
Rights to Subscribe to Additional Shares 16-9
Evolving Issue is That All Debt? 16-9
Stock Compensation Plans 16-10
Measurement—Stock Compensation 16-11
What Do the Numbers Mean? What’s the Debate About? 16-12
Recognition—Stock Compensation 16-13
Restricted Stock 16-14
Employee Stock-Purchase Plans 16-16
Disclosure of Compensation Plans 16-16
Basic Earnings per Share 16-18
Earnings per Share—Simple Capital Structure 16-19
Comprehensive Example 16-21
Diluted Earnings per Share 16-22
Diluted EPS—Convertible Securities 16-23
Diluted EPS—Options and Warrants 16-25
Contingent Issue Agreement 16-26
Antidilution Revisited 16-26
EPS Presentation and Disclosure 16-27
Summary of EPS Computation 16-29
What Do the Numbers Mean? Pro Forma EPS Confusion 16-30
Appendix 16A: Accounting for Stock-Appreciation Rights 16-30
SARs—Share-Based Equity Awards 16-31
SARs—Share-Based Liability Awards 16-31
Stock-Appreciation Rights Example 16-32
Appendix 16B: Comprehensive Earnings per Share Example 16-33
Diluted Earnings per Share 16-34
FAS B Codification and Exercises 16-57
IFRS Insights 16-58
17 Investments 17-1
Winners and Losers 17-1
Investments in Debt Securities 17-2
Debt Investment Classifications 17-3
Held-to-Maturity Securities (Amortized Cost) 17-4
Available-for-Sale Securities (Fair Value Through Other Comprehensive Income) 17-6
Trading Securities (Fair Value Through Net Income) 17-10
What Do the Numbers Mean? To Have and to Hold 17-11
Investments in Equity Securities 17-11
Holdings of Less Than 20% 17-12
Holdings Between 20% and 50% (Equity Method) 17-14
Holdings of More Than 50% (Consolidation) 17-16
What Do the Numbers Mean? Who’s in Control Here? 17-16
Other Financial Reporting Issues 17-17
Fair Value Option 17-17
Evolving Issue Fair Value Controversy 17-18
Impairment of Value 17-18
Reclassification Adjustments 17-21
Transfers Related to Debt Securities 17-24
Summary of Reporting Treatment of Securities 17-25
What Do The Numbers Mean? So You Think It is Easy? 17-26
Appendix 17A: Accounting for Derivative Instruments 17-26
Defining Derivatives 17-27
Who Uses Derivatives, and Why? 17-27
Producers and Consumers 17-27
Speculators and Arbitrageurs 17-28
Basic Principles in Accounting for Derivatives 17-29
Example of Derivative Financial Instrument—Speculation 17-29
Differences Between Traditional and Derivative Financial Instruments 17-31
Derivatives Used for Hedging 17-32
What Do the Numbers Mean? Risky Business 17-33
Fair Value Hedge 17-33
Cash Flow Hedge 17-35
Other Reporting Issues 17-37
Embedded Derivatives 17-37
Qualifying Hedge Criteria 17-38
Summary of Derivatives Accounting 17-39
Comprehensive Hedge Accounting Example 17-40
Fair Value Hedge 17-40
Financial Statement Presentation of an Interest Rate Swap 17-42
Controversy and Concluding Remarks 17-43
Appendix 17B: Fair Value Disclosures 17-43
Disclosure of Fair Value Information: Financial Instruments 17-44
Disclosure of Fair Values: Impaired Assets or Liabilities 17-46
Conclusion 17-47
FAS B Codification and Exercises 17-70
IFRS Insights 17-71
18 Revenue Recognition 18-1
It’s Back 18-1
Fundamentals of Revenue Recognition 18-3
Background 18-3
New Revenue Recognition Standard 18-4
Overview of the Five-Step Process: Boeing Example 18-4
Extended Example of the Five-Step Process: BEAN 18-5
The Five-Step Process Revisited 18-9
Identifying the Contract with Customers—Step 1 18-9
Identifying Separate Performance Obligations—Step 2 18-10
Determining the Transaction Price—Step 3 18-11
Allocating the Transaction Price to Separate Performance Obligations—Step 4 18-15
Recognizing Revenue When (or as) Each Performance Obligation is Satisfied—Step 5 18-17
Summary 18-18
Accounting for Revenue Recognition Issues 18-19
Sales Returns and Allowances 18-19
Repurchase Agreements 18-22
Bill-and-Hold Arrangements 18-24
Principal-Agent Relationships 18-24
Consignments 18-25
What Do the Numbers Mean? Grossed Out 18-27
Warranties 18-27
Nonrefundable Upfront Fees 18-29
Summary 18-29
Presentation and Disclosure 18-30
Presentation 18-30
Disclosure 18-34
Evolving Issue Revenue: “It’s Like An Octopus” 18-35
Appendix 18A: Long-Term Construction Contracts 18-36
Revenue Recognition over Time 18-36
Percentage-of-Completion Method 18-37
Completed-Contract Method 18-42
Long-Term Contract Losses 18-43
Appendix 18B: Revenue Recognition for Franchises 18-46
Franchise Accounting 18-47
Recognition of Franchise Rights Revenue over Time 18-49
FAS B Codification and Exercises 18-76
19 Accounting for Income Taxes 19-1
Taxes Are A-Changing 19-1
Fundamentals of Accounting for Income Taxes 19-3
Future Taxable Amounts and Deferred Taxes 19-4
What Do the Numbers Mean? “Real Liabilities” 19-8
Future Deductible Amounts and Deferred Taxes 19-8
What Do the Numbers Mean? “Real Assets” 19-11
Deferred Tax Asset—Valuation Allowance 19-11
Additional Considerations 19-12
Income Statement Presentation 19-12
Specific Differences 19-13
Tax Rate Considerations 19-16
What Do the Numbers Mean? Global Tax Rates 19-17
What Do the Numbers Mean? Lower Tax Rate—Good or Bad? 19-18
Accounting for Net Operating Losses 19-18
Loss Carryforward 19-19
Loss Carryforward Example 19-19
What Do the Numbers Mean? NOLs: Good News or Bad? 19-23
Financial Statement Presentation 19-23
Balance Sheet 19-23
Note Disclosure 19-24
What Do the Numbers Mean? Imagination at Work 19-25
Income Statement 19-26
Evolving Issue Uncertain Tax Positions 19-28
The Asset-Liability Method 19-28
Appendix 19A: Comprehensive Example of Interperiod Tax Allocation 19-30
First Year—2019 19-30
Taxable Income and Income Taxes Payable—2019 19-31
Computing Deferred Income Taxes—End of 2019 19-31
Deferred Tax Expense (Benefit) and the Journal Entry to Record Income Taxes—2019 19-32
Financial Statement Presentation—2019 19-33
Second Year—2020 19-34
Taxable Income and Income Taxes Payable—2020 19-34
Computing Deferred Income Taxes—End of 2020 19-35
Deferred Tax Expense (Benefit) and the Journal Entry to Record Income Taxes—2020 19-35
Financial Statement Presentation—2020 19-36
Appendix 19B: Accounting for Net Operating Loss Carrybacks 19-36
Loss Carryback 19-37
Loss Carryback Example 19-37
Loss Carryback with Carryforward 19-38
FAS B Codification and Exercises 19-59
IFRS Insights 19-60
20 Accounting for Pensions and Postretirement Benefits 20-1
Where Have All the Pensions Gone? 20-2
Fundamentals of Pension Plan Accounting 20-3
Defined Contribution Plan 20-4
Defined Benefit Plan 20-5
What Do the Numbers Mean? Which Plan is Right for You? 20-6
The Role of Actuaries in Pension Accounting 20-6
Measures of the Liability 20-7
What Do the Numbers Mean? Roller Coaster 20-8
Components of Pension Expense 20-9
Using a Pension Worksheet 20-11
2020 Entries and Worksheet 20-12
Funded Status 20-13
Prior Service Cost (PSC) 20-13
Amortization 20-14
2021 Entries and Worksheet 20-15
Gains and Losses 20-17
Smoothing Unexpected Gains and Losses on Plan Assets 20-17
What Do the Numbers Mean? Pension Costs Ups and Downs 20-18
Smoothing Unexpected Gains and Losses on the Pension Liability 20-18
Corridor Amortization 20-18
Evolving Issue Bye Bye Corridor 20-21
2022 Entries and Worksheet 20-21
2023 Entries and Worksheet—A Comprehensive Example 20-23
Reporting Pension Plans in Financial Statements 20-25
Assets and Liabilities 20-25
Net Income 20-26
Comprehensive Income 20-27
Within the Notes to the Financial Statements 20-28
Special Issues 20-31
What Do the Numbers Mean? Who Guarantees the Guarantor? 20-32
Concluding Observations 20-34
Appendix 20A: Accounting for Postretirement Benefits 20-34
Accounting Guidance 20-34
Differences Between Pension Benefits and Healthcare Benefits 20-35
What Do the Numbers Mean? OPEBs—How Big Are They? 20-36
Postretirement Benefits Accounting Provisions 20-36
Obligations Under Postretirement Benefits 20-36
Postretirement Expense 20-37
Illustrative Accounting Entries 20-38
2020 Entries and Worksheet 20-38
Recognition of Gains and Losses 20-39
2021 Entries and Worksheet 20-40
Amortization of Net Gain or Loss in 2022 20-41
Disclosures in Notes to the Financial Statements 20-41
Actuarial Assumptions and Conceptual Issues 20-43
What Do the Numbers Mean? Want Some Bad News? 20-43
FAS B Codification and Exercises 20-67
IFRS Insights 20-68
21 Accounting for Leases 21-1
Times Are A-Changing 21-1
The Leasing Environment 21-3
A Look at the Lessee 21-3
Advantages of Leasing—Lessees 21-4
A Look at the Lessor 21-4
Advantages of Leasing—Lessors 21-5
What Do the Numbers Mean? Residual Value Regret 21-6
Conceptual Nature of a Lease 21-6
Finance and Operating Leases (Lessee) 21-7
Lease Classification 21-7
Accounting for Finance Leases 21-11
Lessee Accounting for Finance Leases: An Example 21-11
Lessor Accounting for Sales-Type Leases 21-14
What Do the Numbers Mean? Not So Fast 21-15
Sales-Type Lease Example 21-16
Accounting for Operating Leases 21-18
Lessee Accounting for Operating Leases 21-18
Lessor Accounting for Operating Leases 21-21
Special Lease Accounting Problems 21-22
Residual Values 21-23
Other Lease Adjustments 21-27
Bargain Purchase Options 21-29
Short-Term Leases 21-30
Presentation, Disclosure, and Analysis 21-30
Evolving Issue Bring It On! 21-34
Appendix 21A: Sale-Leasebacks 21-35
Accounting Issues in Sale-Leaseback Transactions 21-35
Sale Transaction 21-36
Financing Transaction (Failed Sale) 21-36
Sale-Leaseback Example 21-37
Appendix 21B: Direct Financing Lease (Lessor) 21-39
Direct Finance Lease Accounting 21-39
Direct Financing Lease Example 21-40
Appendix 21C: Comprehensive Examples 21-44
Lease Terms: Scenario 1 21-44
Lease Classification 21-44
Accounting for Finance Lease 21-45
Lease Terms: Scenario 2 21-46
Lease Classification 21-47
Lessee Accounting—Operating Lease 21-47
Lessor Accounting—Operating Lease 21-50
FAS B Codification and Exercises 21-79
IFRS Insights 21-80
22 Accounting Changes and Error Analysis 22-1
In the Dark 22-2
Accounting Changes 22-3
Background 22-3
Changes in Accounting Principle 22-4
What Do the Numbers Mean? Quite a Change 22-5
What Do the Numbers Mean? Change Management 22-7
Impracticability 22-14
Other Accounting Changes 22-15
Changes in Accounting Estimates 22-16
What Do the Numbers Mean? Why Now? 22-18
Changes in Reporting Entity 22-18
Accounting Errors 22-19
What Do the Numbers Mean? Can I Get My Money Back? 22-20
Example of Error Correction 22-20
Summary of Accounting Changes and Correction of Errors 22-22
What Do the Numbers Mean? What’s Your Motivation? 22-24
Error Analysis 22-24
Balance Sheet Errors 22-25
Income Statement Errors 22-25
Balance Sheet and Income Statement Errors 22-25
Comprehensive Example: Numerous Errors 22-28
What Do the Numbers Mean? Guard the Financial Statements! 22-30
Preparation of Financial Statements with Error Corrections 22-31
Appendix 22A: Changing from or to the Equity Method 22-33
Change from the Equity Method 22-33
Dividends in Excess of Earnings 22-33
Change to the Equity Method 22-34
FAS B Codification and Exercises 22-60
IFRS Insights 22-61
23 Statement of Cash Flows 23-1
Show Me the Money! 23-1
Statement of Cash Flows 23-3
Usefulness of the Statement of Cash Flows 23-3
Classification of Cash Flows 23-4
What Do the Numbers Mean? How’s My Cash Flow? 23-5
Format of the Statement of Cash Flows 23-6
Preparing the Statement of Cash Flows 23-6
Illustrations—Tax Consultants Inc. 23-7
What Do the Numbers Mean? Earnings and Cash Flow Management? 23-9
Sources of Information for the Statement of Cash Flows 23-17
Net Cash Flow from Operating Activities—Direct Method 23-17
Evolving Issue Direct versus Indirect 23-22
Special Problems in Statement Preparation 23-24
Adjustments to Net Income 23-24
Accounts Receivable (Net) 23-27
What Do the Numbers Mean? Not What It Seems 23-29
Other Working Capital Changes 23-29
Net Losses 23-30
Significant Noncash Transactions 23-31
What Do the Numbers Mean? Better Than ROA? 23-32
Use of a Worksheet 23-32
Preparation of the Worksheet 23-34
Analysis of Transactions 23-37
Preparation of Final Statement 23-40
FAS B Codification and Exercises 23-69
IFRS Insights 23-70
24 Full Disclosure in Financial Reporting 24-1
High-Quality Financial Reporting—Always in Fashion 24-2
Full Disclosure Principle 24-3
Increase in Reporting Requirements 24-4
Differential Disclosure 24-5
Evolving Issue Disclosure—Quantity and Quality 24-6
Notes to the Financial Statements 24-6
What Do the Numbers Mean? Footnote Secrets 24-8
Disclosure Issues 24-8
Related Parties 24-8
Post-Balance-Sheet Events (Subsequent Events) 24-9
Reporting for Diversified (Conglomerate) Companies 24-11
Interim Reports 24-15
Evolving Issue It’s Faster but is It Better? 24-20
Auditor’s and Management’s Reports 24-21
Auditor’s Report 24-21
What Do the Numbers Mean? Heart of the Matter 24-24
Management’s Reports 24-24
Current Reporting Issues 24-26
Fraudulent Financial Reporting 24-26
Internet Financial Reporting 24-29
Reporting on Financial Forecasts and Projections 24-30
What Do the Numbers Mean? Global Forecasts 24-31
Criteria for Making Accounting and Reporting Choices 24-31
Appendix 24A: Basic Financial Statement Analysis 24-32
Perspective on Financial Statement Analysis 24-32
Ratio Analysis 24-33
Limitations of Ratio Analysis 24-35
Comparative Analysis 24-36
Percentage (Common-Size) Analysis 24-37
FAS B Codification and Exercises 24-58
IFRS Insights 24-59
Appendix A Private Company Accounting A-1
The Private Company Council (PCC) A-1
Background on the PCC A-1
Private Company Decision-Making Framework A-1
PCC Accomplishments A-2
Private Company Alternatives for Intangible Assets and Goodwill A-2
Accounting for Identifiable Intangible Assets A-2
Accounting for Goodwill A-4
Summary A-6
Appendix B Specimen Financial Statements: The Procter & Gamble Company B-1
Appendix C Specimen Financial Statements: The Coca-Cola Company C-1
Appendix D Specimen Financial Statements: PepsiCo, Inc. D-1
Appendix E Specimen Financial Statements: Marks and Spencer plc E-1
Time Value of Money Tables TVM-1
Index I-1
The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.
The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.
