Advanced Accounting delivers an in-depth, comprehensive introduction to advanced accounting theory and application, using actual business examples and relevant news stories to demonstrate how core principles translate into real-world business scenarios. Clearly defined and logically organized Learning Objectives aid in student comprehension, while highlighted Related Concepts illustrate how individual concepts fit into the larger picture. Short answer questions throughout the chapter allow students to test their knowledge before reaching the more in-depth end-of-chapter questions, promoting a deeper understanding of both technical and conceptual aspects of the field. Written by active accounting researchers, this text brings clarity and flexibility to the central ideas underlying business combinations, consolidated financial statements, foreign currency transactions, partnerships, non-profit accounting and more. This new Seventh Edition has been updated to reflect the latest changes to FASB and GASB standards, allowing students to build a skill set based on up-to-date practices. With a student-oriented pedagogy designed to enhance comprehension, promote engagement, and build real-world understanding, this user-friendly book provides an essential foundation in current advanced accounting methods and standards.  

Table of Contents:
About the Authors Preface Chapter 1: Introduction to Business Combinations and the Conceptual Framework Learning Objectives 1.1 Growth Through Mergers 1.2 Nature of the Combination 1.3 Business Combinations: Why? Why not? 1.4 Business Combinations: Historical Perspective 1.5 Terminology and Types of Combinations 1.6 Takeover Premiums 1.7 Avoiding the Pitfalls before the Deal 1.8 Determining Price and Method of Payment in Business Combinations 1.9 Alternative Concepts of Consolidated Financial Statements 1.10 FASB's Conceptual Framework 1.11 FASB Codification (Source of GAAP) Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 2: Accounting for Business Combinations Learning Objectives 2.1 Accounting Standards on Business Combinations: Background 2.2 Illustration of Acquisition Accounting 2.3 Bargain Purchase Accounting 2.4 Measurement Period and Measurement Period Adjustments 2.5 Goodwill Impairment Test 2.6 Contingent Consideration (Earnouts) 2.7 Proforma Statements and Disclousre Requirements 2.8 Leveraged Buyouts 2.9 IFRS versus U.S. GAAP Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 3: Consolidated Financial Statements-Date of Acquisition Learning Objectives 3.1 Definitions of Subsidiary and Control 3.2 Requirements for the Inclusion of Subsidiaries in the Consolidated Financial Statements 3.3 Reasons for Subsidiary Companies 3.4 Consolidated Financial Statements 3.5 Investments at the Date of Acquisition 3.6 Consolidated Balance Sheets: The Use of Workpapers 3.7 A Comprehensive Illustration-More than One Subsidiary Company 3.8 Limitations of Consolidated Statements Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 4: Consolidated Financial Statements After Acquisition Learning Objectives 4.1 Accounting for Investments By the Cost, Partial Equity, and Complete Equity Methods 4.2 Consolidated Statements After Acquisition—Cost Method 4.3 Recording Investments in Subsidiaries—Equity Method (Partial Or Complete) 4.4 Elimination of Intercompany Revenue and Expense Items 4.5 Interim Acquisitions of Subsidiary Stock 4.6 Consolidated Statement of Cash Flows 4.7 Illustration of Preparation of a Consolidated Statement of Cash Flows—Year of Acquisition 4.8 Compare U.S. GAAP and IFRS Regarding Equity Method Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 5: Allocation and Depreciation of Differences Between Implied and Book Values Learning Objectives 5.1 Computation and Allocation of the Difference Between Implied and Book Values to Assets and Liabilities of Subsidiary–Acquisition Date 5.2 Effect of Differences Between Implied and Book Values on Consolidated Net Income—Year Subsequent to Acquisition 5.3 Consolidated Statements Workpaper—Using the Cost Method 5.4 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using the Cost Method 5.5 Consolidated Statements Workpaper—Using Partial Equity Method 5.6 Controlling and Noncontrolling Interests in Consolidated Net Income and Retained Earnings—Using Partial Equity Method 5.7 Consolidated Statements Workpaper—Using Complete Equity Method 5.8 Controlling Interest in Consolidated Net Income and Retained Earnings—Using Complete Equity Method 5.9 Additional Considerations Relating to Treatment of Difference Between Implied and Book Values 5.10 Push Down Accounting 5.11 IFRS Vs U.S. GAAP on Research & Development Costs Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 6: Elimination of Unrealized Profit on Intercompany Sales of Inventory Learning Objectives 6.1 Effects of Intercompany Sales of Merchandise on the Determination of Consolidated Balances 6.2 Cost Method: Consolidated Statements Workpaper—Upstream Sales 6.3 Cost Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.4 Consolidated Statements Workpaper—Partial Equity Method 6.5 Partial Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.6 Consolidated Statements Workpaper—Complete Equity Method 6.7 Complete Equity Method—Analysis of Consolidated Net Income and Consolidated Retained Earnings 6.8 Summary of Workpaper Entries Relating to Intercompany Sales of Inventory 6.9 Intercompany Profit Prior to Parent-Subsidiary Affiliation Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 7: Elimination of Unrealized Gains Or Losses on Intercompany Sales of Property and Equipment Learning Objectives 7.1 Intercompany Sales of Land (Nondepreciable Property) 7.2 Intercompany Sales of Depreciable Property (Machinery, Equipment, and Buildings) 7.3 Consolidated Statements Workpaper—Cost and Partial Equity Methods 7.4 Calculation of Consolidated Net Income and Consolidated Retained Earnings 7.5 Consolidated Statements Workpaper—Complete Equity Method 7.6 Calculation and Allocation of Consolidated Net Income; Consolidated Retained Earnings: Complete Equity Method 7.7 Summary of Workpaper Entries Relating to Intercompany Sales of Equipment 7.8 Intercompany Interest, Rents, and Service Fees Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 8: Changes in Ownership Interest Learning Objectives 8.1 Changes in Ownership 8.2 Parent Acquires Subsidiary Stock Through Several Open-Market Purchases—Cost Method 8.3 Parent Sells Subsidiary Stock Investment on the Open Market—Cost Method 8.4 Equity Method—Purchases and Sales of Subsidiary Stock By the Parent 8.5 Parent Sells Subsidiary Stock Investment on the Open Market—Cost Method 8.6 Subsidiary Issues Stock Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 9: Intercompany Bond Holdings and Miscellaneous Topics—Consolidated Financial Statements Learning Objectives 9.1 Intercompany Bond Holdings 9.2 Accounting for Bonds—A Review 9.3 Constructive Gain Or Loss on Intercompany Bond Holdings 9.4 Accounting for Intercompany Bonds Illustrated 9.5 Book Entry Related to Bond Investment 9.6 Interim Purchase of Intercompany Bonds 9.7 Notes Receivable Discounted 9.8 Stock Dividends Issued By a Subsidiary Company 9.9 Dividends From Preacquisition Earnings 9.10 Subsidiary With Both Preferred and Common Stock Outstanding 9.11 Consolidating a Subsidiary With Preferred Stock Outstanding Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 10: Insolvency—Liquidation and Reorganization Learning Objectives 10.1 Contractual Agreements 10.2 Bankruptcy 10.3 Liquidation (Chapter 7) 10.4 Reorganization Under the Reform Act (Chapter 11) 10.5 Trustee Accounting and Reporting 10.6 Realization and Liquidation Account Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 11: International Financial Reporting Standards Learning Objectives 11.1 the Increasing Importance of International Accounting Standards 11.2 Historical Perspective 11.3 GAAP Hierarchy—U.S. Versus IFRS 11.4 Similarities and Differences Between U.S. GAAP and IFRS 11.5 Business Combinations and Consolidations 11.6 International Convergence Issues 11.7 American Depository Receipts: An Overview Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 12: Accounting for Foreign Currency Transactions and Hedging Foreign Exchange Risk Learning Objectives 12.1 Exchange Rates—Means of Translation 12.2 Measured versus Denominated 12.3 Foreign Currency Transactions 12.4 Using Forward Contracts As a Hedge Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 13: Translation of Financial Statements of Foreign Affiliates Learning Objectives 13.1 Accounting for Operations in Foreign Countries 13.2 Translating Financial Statements of Foreign Affiliates 13.3 Objectives of Translation 13.4 Translation Methods 13.5 Identifying the Functional Currency 13.6 Translation of Foreign Currency Financial Statements 13.7 Translation of Foreign Financial Statements Illustrated 13.8 Financial Statement Disclosure 13.9 Historical Developments of Accounting Standards Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 14: Reporting for Segments and for Interim Financial Periods Learning Objectives 14.1 Need for Disaggregated Financial Data 14.2 Standards of Financial Accounting and Reporting 14.3 International Accounting Standards Board (IASB) Position on Segment Reporting 14.4 Interim Financial Reporting Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 15: Partnerships: Formation, Operation, and Ownership Changes Learning Objectives 15.1 Partnership Defined 15.2 Reasons for Forming a Partnership 15.3 Characteristics of a Partnership 15.4 Partnership Agreement 15.5 Accounting for a Partnership 15.6 Special Problems in Allocation of Income and Loss 15.7 Financial Statement Presentation 15.8 Changes in the Ownership of the Partnership 15.9 Section A: Admission of a New Partner 15.10 Section B: Withdrawal of a Partner Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 16: Partnerships: Formation, Operation, and Ownership Changes Learning Objectives 16.1 Steps in the Liquidation Process 16.2 Priorities of Partnership and Personal Creditors 16.3 Simple Liquidation Illustrated 16.4 Installment Liquidation 16.5 Incorporation of a Partnership Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 17: Introduction to Fund Accounting Learning Objectives 17.1 Classifications of Nonbusiness Organizations 17.2 Distinctions Between Nonbusiness Organizations and Profit-Oriented Enterprises 17.3 Financial Accounting and Reporting Standards for Nonbusiness Organizations 17.4 Fund Accounting 17.5 Comprehensive Illustration—General Fund 17.6 Reporting Inventory and Prepayments in the Financial Statements Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 18: Introduction to Accounting for State and Local Governmental Units Learning Objectives 18.1 the History of Generally Accepted Governmental Accounting Standards 18.2 the Structure of Governmental Accounting 18.3 Governmental Fund Entities 18.4 Proprietary Funds 18.5 Fiduciary Funds 18.6 Capital Assets and Long-Term Debt 18.7 External Reporting Requirements 18.8 Government Fund-Based Reporting 18.9 Government-Wide Reporting 18.10 Management's Discussion and Analysis (Md&A) 18.11 Interfund Activity Summary Question Analyzing Financial Statements Exercises ASC Exercises Chapter 19: Accounting for Nongovernment Nonbusiness Organizations: Colleges and Universities, Hospitals and Other Health Care Organizations Learning Objectives 19.1 Sources of Generally Accepted Accounting Standards for Nongovernment-Nonbusiness Organizations 19.2 Financial Reporting for Not-For-Profit Entities 19.3 Accrual Basis of Accounting 19.4 Contributions 19.5 Accounting for Current Funds 19.6 Accounting for Plant Funds 19.7 Accounting for Endowment Funds 19.8 Accounting for Investments 19.9 Accounting for Loan Funds 19.10 Accounting for Agency (Custodial) Funds 19.11 Accounting for Annuity and Life Income Funds 19.12 Issues Relating to Colleges, Universities, and Hospitals Summary Question Analyzing Financial Statements Exercises ASC Exercises Glossary Appendix PV: Tables of Present Values Index