by Hamlen, Huefner, Largay III
ISBN: 978-1-61853-151-3 | Copyright 2016Tabs
Advanced Accounting is intended for use, at either the undergraduate or graduate level, in the course commonly known as Advanced Accounting. It is also designed to be used in courses focusing on mergers and acquisitions that are often part of the MBA curriculum or that are offered as a nondegree, professional development program.
Conceptual explanations focus on the logic underlying reporting standards rather than merely explaining procedures. We develop each topic by explaining the underlying business activity, the reporting goals, and how standards and procedures achieve these goals. Each topic is clearly developed in terms students can understand. We use illustrations from actual practice to enhance understanding and familiarize students with the information presented in real financial statements. Accounting standards are increasingly principles based, requiring substantial judgment in their application. And standards change every year. Conceptual understanding prepares students to evaluate and effectively apply future standards throughout their professional careers.
Logical flow of topical coverage
The organization of chapters reflects the logical flow of topics:
Relevant Real Company Illustrations
Each chapter begins with a description of a familiar focus company, and how its activities and reporting practices relate to that chapter’s topics. For example, in Chapter 2, IBM’s extensive acquisitions illustrate accounting for mergers and acquisitions. Noncontrolling interests are common in the resort industry, and in Chapter 5 Las Vegas Sands Corporation illustrates reporting for noncontrolling interests in subsidiaries. In Chapter 9, Kellogg’s hedging practices illustrate hedge accounting for futures, options and swaps. In Chapter 13, Beta Alpha Psi’s financial statements illustrate NFP reporting standards. Throughout each chapter, examples from actual practice highlight major topics, using either the focus company or other companies in the same industry.
Following is a list of focus companies by chapter:
|5||Las Vegas Sands Corporation|
|10||Mecklenburg County, NC|
|11||Alameda County, CA|
|12||St. Louis, MO|
|13||Beta Alpha Psi|
|14||Suburban Propane Partners|
|16||Securities and Exchange Commission|
Emphasis on Current Issues and Trends
Taken from current news and actual financial statements, Business Applications boxes illustrate reporting practices, current issues, and controversies. The following is an example from Chapter 3.
Reporting Perspectives comment on topics such as the strengths and weaknesses in reporting standards, ethical issues, implications for information quality, and proposals for new standards. The following is a sample from Chapter 4.
Extensive discussion and illustration of international financial reporting standards and proposals appear in each of the business combinations, foreign currency translation and transactions, and futures, options and swaps chapters.The following is a sample from Chapter 5.
Clear and Logical Development of Business Combinations Topics
Reporting issues related to business combinations cover a variety of topics. Consolidation procedures are difficult to comprehend and can be confusing to students. We emphasize the measurement aspects of combinations—reporting assets and liabilities acquired, determining acquisition cost, valuing non-controlling interests, eliminating intercompany accounts.
To make consolidation procedures more comprehensible, eliminations subsequent to acquisition (covered in Chapters 4-6) presume that the parent uses the complete (full) equity method. Exclusive use of the complete (full) equity method allows students to focus on the goals of consolidation and the key issues in consolidation procedures. Once students develop a solid understanding of the consolidation process, changes in procedures required when the parent uses the cost method can be introduced. The appendix to Chapter 4 explains the elimination entries necessary to adjust the parent’s accounts to the complete equity method before proceeding with consolidation. The appendix also compares complete equity method eliminations to cost method eliminations.
To reinforce concepts presented in each chapter and ensure student comprehension, we include two or more In-Chapter Review problems that require students to recall and apply the accounting techniques and concepts described in the chapter. The solutions to the review problems are included after each chapter’s assignments. The following example is frm Chapter 2.
Learning Objectives identify the primary learning outcomes for each chapter. An end-of-chapter Review of Key Concepts summarizes the key topics of each chapter.
Extensive Class-Tested End-of-Chapter Material
Outstanding assignment material is an essential component of a successful textbook. End-of-chapter questions, exercises and problems cover all major topics and have a range of difficulty levels, allowing students ample opportunity to practice their understanding of the chapter. Some problems require students to use real company data in applying their knowledge. Assignment material is class-tested, with an emphasis on relevance and accuracy.
Certain business combination problems continue from chapter to chapter. For example, P3.2 covers consolidation at the date of acquisition, and P4.8 covers consolidation of the same two companies in subsequent years. P4.2 covers subsequent year consolidation of a wholly owned subsidiary, and P5.7 addresses subsequent year consolidation of the same subsidiary, when the subsidiary has outside ownership. In P2.5, an acquisition is reported as a merger, and in P3.11 the same acquisition is reported as a stock investment and consolidation. P3.4, P4.4, P5.2, P5.4 and P5.5 use the same acquisition data to illustrate consolidation of a bargain purchase at the date of acquisition, subsequent years, and with a noncontrolling interest. Each of these problems can also be assigned separately. In working through these problems, students gain a clearer understanding of accounting for business combinations.
Features New To This Edition
Online Instruction and Homework Management System
myBusinessCourse.com is a web-based learning and assessment program intended to complement your textbook and faculty instruction. This easy-to-use program grades homework automatically (Instructor-Led course only) and provides students with access to narrated demonstrations and eLecture videos. Assignments with the checkmark in the margin are available in the Instructor-Led version of myBusinessCourse. Access is free with new copies of this textbook (look for a page containing the access code near the front of the book). If you buy a used copy of the book, you can purchase access at www.mybusinesscourse.com.
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|Preface (pg. i)|
|Chapter 1: Intercorporate Investments: An Overview (pg. 2)|
|Chapter 2: Mergers and Acquisitions (pg. 34)|
|Chapter 3: Consolidated Financial Statements: Date of Acquisition (pg. 78)|
|Chapter 4: Consolidated Financial Statements Subsequent to Acquisition (pg. 118)|
|Chapter 5: Consolidated Financial Statements: Outside Interests (pg. 176)|
|Chapter 6: Consolidated Financial Statements: Intercompany Transactions (pg. 228)|
|Chapter 7: Consolidating Foreign Currency Financial Statements (pg. 272)|
|Chapter 8: Foreign Currency Transactions and Hedging (pg. 328)|
|Chapter 9: Futures, Options and Interest Rate Swaps (pg. 376)|
|Chapter 10: State and Local Governments: Introduction and General Fund Transactions (pg. 414)|
|Chapter 11: State and Local Governments: Other Transactions (pg. 468)|
|Chapter 12: State and Local Governments: External Financial Reporting (pg. 518)|
|Chapter 13: Private Not-For-Profit Organizations (pg. 564)|
|Chapter 14: Partnership Accounting and Reporting (pg. 612)|
|Chapter 15: Bankruptcy and Reorganization (pg. 662)|
|Chapter 16: The SEC and Financial Reporting (pg. 704)|
|Index (pg. 736)|
Last Updated: Jan 2 2016
Practice Quiz Solutions
Last Updated: Nov 29 2016
Student Excel Templates
Last Updated: Apr 22 2016
Excel spreadsheets for select assignments are provided on the book’s website. These spreadsheets will save time in data entry and allow students to dedicate additional time to learning the material. The Excel spreadsheets are identified by the Excel icon.
Last Updated: Apr 19 2016
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