Author Description

About the Authors xi About the Financial Accounting Professors xiii Welcome to Financial Accounting and Reporting xv Conceptual Framework and Financial Reporting 1 Financial Accounting Standards Board (FASB) 2 Overview of U.S. GAAP 2 FASB and Standard Setting 2 Accrual Accounting 6 Financial Statements 12 Financial Accounting Standards Codification 17 Conceptual Framework of Financial Reporting by Business Enterprises 21 Objectives and Qualitative Characteristics 21 Assumptions and Accounting Principles 24 Constraints and Present Value 28 Fair Value Framework 31 Fair Value Framework--Introduction and Definitions 31 Recognition and Measurement 35 Inputs and Hierarchy 38 Disclosure Requirements 40 International Financial Reporting Standards (IFRS) 44 IASB Accounting Standards 44 IASB Framework 49 IFRS for SMEs 52 IFRS--General-Purpose Financial Statements 55 General-Purpose Financial Statements 62 Balance Sheet/Statement of Financial Position 62 Income Statement 70 Statement of Comprehensive Income 76 Statement of Changes in Equity 80 Statement of Cash Flows 83 Sources and Uses of Cash 83 Operating, Investing, and Financing Activities 86 Operating Cash Flows--Indirect Method 94 Notes to Financial Statements 102 Notes to Financial Statements 102 Risks and Uncertainties 108 Subsequent Events 113 Evaluating Financial Statements 116 Ratios--Liquidity/Solvency and Operational 116 Ratios--Profitability and Equity 120 Consolidated Financial Statements 123 Introduction to Consolidated Financial Statements 123 Consolidating Process 127 Consolidation at Acquisition 127 Consolidation Subs