Advanced Financial Accounting

Including complete work papers, financial statements and other computations and comparisons, this text is loosely organized into five sections to allow for flexibility in sequencing the topics during undergraduate financial accounting courses.

Each of the chapters in the text has been revised to include comprehensive discussion and full illustration of recent FASB (through Statement No. 138) and GASB (through Statement No. 36) standards. End-of-chapter materials have been developed and added that best illustrate and explore these new standards.
The chapters on business combinations have been updated to include discussion of the recent FASB Exposure Draft on Business Combinations and Intangible Assets that recommends the elimination of the pooling method for accounting for business combinations. This represents a substantial change in the accounting for business combinations and the accounting and reporting for goodwill arising as a result of a purchase combination.
End-of-chapter homework material has been enhanced with additional exercises and problems, while also maintaining the best of the end-of-chapter material from the fourth edition. Adopters and reviewers have provided numerous positive comments on the breadth and variety of the end-of-chapter materials.
The material on Accounting for Branch Operations has been removed from the text and placed on the textbook's website to reflect its narrower application and coverage in Advanced Financial Accounting courses, and on the CPA exam.
Chapter 11, Multinational Accounting: Foreign Currency Transactions and Financial Instruments, has been extensively revised and extended to include much more presentation of the accounting and reporting of derivative and hedging transactions. Adopters have indicated the increasing importance of this topic for Advanced Financial Accounting courses.
Chapters 17 and 18, Governmental Entities, have both been completely revised to include GASB 34 on the new reporting model, and other recent GASB standards (including GASB 33), that specify numerous changes to the governmental accounting and reporting model. Both fund-based and government-wide financial statements are fully developed and completely presented in the continuous case format so that students can easily determine the accounting for transactions and how the transactions are then reported in the required financial disclosures. Additional other-objective-answer-format (OOAF) exercises and problems have been added to reflect the coverage of governmental accounting on the CPA exam.
Chapter 19 covers accounting for Not-for-Profit entities. The chapter begins with accounting for special-purpose entities, and then presents the accounting for both private and public colleges and universities. GASB 35, which presents the new accounting and reporting standards for public universities, has been fully integrated into this chapter. In addition, the chapter discusses FASB 136, which provides the accounting requirements for transfers of assets to not-for-profit organizations that raise or hold contributions for others. The chapter provides full presentations of all required financial statements, with extensive discussion of the accounting and reporting requirements for these important entities. The end-of-chapter materials have been enhanced to cover the new standards in such a way that students will be prepared for these areas on the CPA exam.
A chapter on Estate and Trust accounting has been added to the book=s website for those who wish to expand their knowledge of these areas. The chapter presents the material in the same comprehensive and clear manner for which the text is well known.
The comprehensive continuous case approach has been retained because it provides students with the ability to see how each successive step affects the financial reporting model of an entity. The Peerless Products and Special Foods case is robust and serves as a foundation for the building-block approach used throughout the text.
The internet-based cases and exercises in the fourth edition have been enhanced to provide students with additional opportunities to access real-world data sources in conjunction with their coverage of the topics. Students will use the internet and other electronic databases to search out contemporary information, to evaluate current U.S. and international accounting standards, and to read current business journal articles on the topics in advanced financial accounting.
Although each chapter has been revised to some extent to reflect recent FASB and GASB standards, as well as seeking even more focused discussion and presentations, extensive efforts were made to retain the clear writing style in the text that adopters and reviewers have valued very highly.
The full coverage of the FASB and GASB standards that have direct applicability to the topics in Advanced Financial Accounting, including FASB 130 on comprehensive income and FASB 131 on segmental disclosures, has been maintained.
Cases at the end of each chapter requiring students to write essay-type responses in response to alternative viewpoints, or to justify a specific accounting choice made have been retained and updated. Students are asked to explain their reasoning and often are asked to use library or internet research tools and materials in support of their answers. These cases require students to go beyond the computational level in addressing the topics in Advanced Financial Accounting.
The end-of-chapter materials have been enhanced while also retaining the wide variety of homework materials for which the text is known.
The Study Guide for the text is written by the three authors of the text to ensure full integration and compatible presentation of the topics. The Study Guide for the fifth edition has been extensively revised to reflect all the updates and enhancements in the textbook coverage as a result of the new GASB and FASB standards, and every effort has been made to provide a terrific learning tool for students.
Because Advanced Financial Accounting is often taken by students who plan to take the CPA examination, numerous end-of-chapter materials are provided in the formats used for testing on the CPA examination. A wide variety of multiple-choice questions, cases requiring written presentations, and other objective answer format (OOAF) materials is provided.