Custom ACCT 3311/3312/5312 Financial Accounting I & II (UT-Arlington)

by Hanlon

ISBN: INT3eUTArl | Copyright 2023

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Intermediate Accounting, 3e (pg. 1.iii)
About Our Team (pg. 1.iii)
Preface (pg. 1.v)
Brief Contents (pg. 1.xviii)
Contents (pg. 1.xix)
Chapter 1: Accounting Environment and the Conceptual Framework (pg. 1.1-1)
LO 1-1: Describe the objective of general-purpose financial reporting (pg. 1.1-3)
Objective of Financial Reporting (pg. 1.1-3)
Implications of Financial Reporting (pg. 1.1-4)
AICPA Pathways Commission (pg. 1.1-4)
CPA Evolution Initiative (pg. 1.1-5)
Demo 1-1: Analyzing the Objective of Financial Reporting (pg. 1.1-5)
Review 1-1: Objective of Financial Reporting (pg. 1.1-6)
LO 1-2: Identify key organizations that determine GAAP, how GAAP is used for accounting research, a (pg. 1.1-7)
Historical Development of GAAP (pg. 1.1-7)
Current Development of GAAP (pg. 1.1-8)
International Accounting Standards (pg. 1.1-14)
Factors Driving High-Quality Application of GAAP (pg. 1.1-14)
Environmental, Social, and Governance Activities (pg. 1.1-15)
Demo 1-2: Determinants of U.S. GAAP (pg. 1.1-16)
Review 1-2: Determinants of U.S. GAAP (pg. 1.1-16)
LO 1-3: Describe the qualitative characteristics of, and the constraint on, useful financial inform (pg. 1.1-17)
Fundamental Qualitative Characteristics (pg. 1.1-18)
Demo 1-3A: Fundamental Qualitative Characteristics of Financial Reporting (pg. 1.1-19)
Review 1-3A: Fundamental Qualitative Characteristics of Financial Reporting (pg. 1.1-19)
Enhancing Qualitative Characteristics (pg. 1.1-20)
Demo 1-3B: Enhancing Qualitative Characteristics of Financial Reporting (pg. 1.1-21)
Review 1-3B: Enhancing Qualitative Characteristics of Financial Reporting (pg. 1.1-21)
Cost Effectiveness Constraint (pg. 1.1-22)
Demo 1-3C: Cost Effectiveness Constraint (pg. 1.1-22)
Review 1-3C: Cost Effectiveness Constraint (pg. 1.1-23)
LO 1-4: Explain financial statement elements in the FASB conceptual framework (pg. 1.1-23)
Demo 1-4: Identification of Financial Statement Elements (pg. 1.1-24)
Review 1-4: Financial Statement Elements (pg. 1.1-25)
LO 1-5: Describe the four key accounting assumptions (pg. 1.1-26)
Demo 1-5: Identifying Accounting Assumptions (pg. 1.1-26)
Review 1-5: Accounting Assumptions (pg. 1.1-27)
LO 1-6: Describe the four key accounting principles (pg. 1.1-27)
Demo 1-6: Identifying Accounting Principles (pg. 1.1-28)
Review 1-6: Accounting Principles (pg. 1.1-28)
Fair Value Hierarchy (pg. 1.1-29)
More on Recognition (pg. 1.1-29)
Impact of Data Analytics for Accounting (pg. 1.1-30)
Management Judgment (pg. 1.1-30)
Reporting Financial Statement Elements (pg. 1.1-30)
Questions (pg. 1.1-31)
Data Analytics (pg. 1.1-32)
Data Visualization (pg. 1.1-32)
Brief Exercises (pg. 1.1-32)
Exercises (pg. 1.1-34)
Accounting Decisions and Judgments (pg. 1.1-39)
Answers to Review Exercises (pg. 1.1-43)
Chapter 2: Accounting Information System (pg. 1.2-1)
LO 2-1: Analyze the effects of economic transactions using the accounting equation (pg. 1.2-3)
Demo 2-1: Analysis of Transactions Using Accounting Equation (pg. 1.2-4)
Review 2-1: Analysis of Transactions Using Accounting Equation (pg. 1.2-5)
LO 2-2: Identify, record, and post transactions (pg. 1.2-5)
Normal Account Balances (pg. 1.2-5)
Demo 2-2A: Identify Normal Account Balances (pg. 1.2-6)
The Accounting Cycle (pg. 1.2-7)
Step 1: Identify Transactions and Events to Be Recorded (pg. 1.2-7)
Step 2: Record Transactions and Events in a Journal (pg. 1.2-8)
Step 3: Post from Journal to Ledger (pg. 1.2-8)
Demo 2-2B: Identify, Record, and Post Transactions (pg. 1.2-9)
Review 2-2: Identify, Record, and Post Transactions (pg. 1.2-12)
LO 2-3: Prepare an unadjusted trial balance (pg. 1.2-13)
Step 4: Prepare an Unadjusted Trial Balance (pg. 1.2-13)
Demo 2-3: Unadjusted Trial Balance (pg. 1.2-13)
Review 2-3: Unadjusted Trial Balance (pg. 1.2-14)
LO 2-4: Identify, record, and post adjusting journal entries (pg. 1.2-14)
Step 5: Identify, Record, and Post Adjusting Journal Entries (pg. 1.2-14)
Demo 2-4A: Adjusting Journal Entries—Deferrals of Expense (pg. 1.2-16)
Demo 2-4B: Adjusting Journal Entries—Deferral of Revenue (pg. 1.2-18)
Demo 2-4C: Adjusting Journal Entries—Accrual of Expense (pg. 1.2-19)
Demo 2-4D: Adjusting Journal Entries—Accrual of Revenue (pg. 1.2-21)
Review 2-4: Adjusting Journal Entries (pg. 1.2-21)
LO 2-5: Prepare an adjusted trial balance (pg. 1.2-22)
Step 6: Prepare the Adjusted Trial Balance (pg. 1.2-22)
Demo 2-5: Adjusted Trial Balance (pg. 1.2-22)
Review 2-5: Adjusted Trial Balance (pg. 1.2-23)
Step 7: Prepare Financial Statements (pg. 1.2-23)
Demo 2-6: Preparation of Financial Statements (pg. 1.2-24)
Review 2-6: Financial Statement Preparation (pg. 1.2-25)
LO 2-7: Prepare and post closing entries and prepare a post-closing trial balance (pg. 1.2-25)
Step 8: Prepare and Post Closing Entries (pg. 1.2-25)
Demo 2-7A: Record and Post Closing Journal Entries (pg. 1.2-26)
Step 9: Prepare a Post-Closing Trial Balance (pg. 1.2-27)
Demo 2-7B: Prepare a Post-Closing Trial Balance (pg. 1.2-27)
Review 2-7: Closing Entries and Post-Closing Trial Balance (pg. 1.2-28)
Management Judgment (pg. 1.2-28)
Management Judgment Required in the Accounting Cycle (pg. 1.2-28)
Management Judgment Required in Setup of Accounts (pg. 1.2-29)
Management Judgment Required in Analysis of Nonfinancial Information (pg. 1.2-29)
APPENDIX 2A: Closing Entries and Post-Closing Trial Balance (pg. 1.2-29)
Special Purpose Frameworks (pg. 1.2-29)
Conversion of Receipts (Cash Basis) to Revenue (Accrual Basis) (pg. 1.2-30)
Conversion of Disbursements (Cash Basis) to Operating Expenses (Accrual Basis) (pg. 1.2-30)
Demo 2-8: Conversion from Cash Basis to Accrual Basis (pg. 1.2-31)
Review 2-8: Conversion from Cash Basis to Accrual Basis (pg. 1.2-31)
APPENDIX 2B: Prepare reversing journal entries (pg. 1.2-32)
Demo 2-9: Reversing Journal Entries (pg. 1.2-32)
Review 2-9: Reversing Journal Entries (pg. 1.2-33)
APPENDIX 2C: Utilize an accounting worksheet (pg. 1.2-33)
Demo 2-10: Preparation of an Accounting Worksheet (pg. 1.2-34)
Review 2-10: Accounting Worksheet (pg. 1.2-35)
Questions (pg. 1.2-35)
Data Analytics (pg. 1.2-36)
Data Visualization (pg. 1.2-37)
Brief Exercises (pg. 1.2-37)
Exercises (pg. 1.2-40)
Problems (pg. 1.2-48)
Accounting Decisions and Judgments (pg. 1.2-54)
Appendices-Questions (pg. 1.2-56)
Appendices-Brief Exercises (pg. 1.2-56)
Appendices-Exercises (pg. 1.2-57)
Appendices-Problems (pg. 1.2-60)
Answers to Review Exercises (pg. 1.2-61)
Chapter 3: Income Statement and Comprehensive Income (pg. 1.3-1)
LO 3-1: Prepare an income statement using single-step and multiple-step formats, focusing on income (pg. 1.3-3)
Income Statement Formats (pg. 1.3-4)
Demo 3-1: Multiple-Step and Single-Step Income Statement Formats (pg. 1.3-5)
Review 3-1: Multiple-Step and Single-Step Income Statement Formats (pg. 1.3-6)
LO 3-2: Report the impact of unusual and infrequent items (pg. 1.3-7)
Demo 3-2: Reporting an Unusual and/or Infrequent Item (pg. 1.3-8)
Review 3-2: Reporting an Unusual and/or Infrequent Item (pg. 1.3-9)
LO 3-3: Prepare an income statement to include discontinued operations (pg. 1.3-9)
Discontinued Business Component Sold During Reporting Period (pg. 1.3-10)
Demo 3-3A: Discontinued Operations—Component Sold as of Financial Statement Date (pg. 1.3-10)
Discontinued Business Component Sold After Reporting Period (pg. 1.3-11)
Demo 3-3B: Discontinued Operations—Component Not Sold as of Financial Statement Date (pg. 1.3-12)
Disclosure of Discontinued Operations (pg. 1.3-13)
Review 3-3: Discontinued Operations (pg. 1.3-13)
LO 3-4: Disclose earnings per share on the income statement (pg. 1.3-14)
Demo 3-4A: Earnings Per Share—With Continuing Operations Only (pg. 1.3-15)
Demo 3-4B: Earnings Per Share—With Discontinued Operations (pg. 1.3-15)
Review 3-4: Earnings per Share (pg. 1.3-16)
LO 3-5: Report other comprehensive income (pg. 1.3-17)
Demo 3-5: Statement of Comprehensive Income Presentations (pg. 1.3-18)
Review 3-5: Statement of Comprehensive Income Presentations (pg. 1.3-19)
LO 3-6: Describe the statement of stockholders’ equity (pg. 1.3-20)
Demo 3-6: Statement of Stockholders’ Equity Presentation (pg. 1.3-20)
Review 3-6: Statement of Stockholders’ Equity (pg. 1.3-21)
LO 3-7: Report changes in accounting estimate, changes in accounting principle, and error correctio (pg. 1.3-21)
Change in Accounting Estimate (pg. 1.3-21)
Demo 3-7A: Change in Accounting Estimate (pg. 1.3-22)
Change in Accounting Principle (pg. 1.3-23)
Demo 3-7B: Change in Accounting Principle (pg. 1.3-24)
Error Correction (pg. 1.3-25)
Demo 3-7C: Error Correction (pg. 1.3-26)
Summary of Accounting Changes and Error Correction (pg. 1.3-26)
Review 3-7: Principle Change, Estimate Change, and Error Correction (pg. 1.3-27)
Management Judgment (pg. 1.3-28)
Income Statement Presentation and Reporting of Comprehensive Income (pg. 1.3-28)
Classification of a Disposal as Discontinued Operations (pg. 1.3-28)
Accounting for Change in Principle and for Error Correction (pg. 1.3-28)
APPENDIX 3A: Describe interim financial reporting (pg. 1.3-29)
Demo 3-8: Interim Financial Reporting (pg. 1.3-31)
Review 3-8: Interim Financial Reporting (pg. 1.3-32)
Questions (pg. 1.3-32)
Data Analytics (pg. 1.3-33)
Data Visualization (pg. 1.3-34)
Brief Exercises (pg. 1.3-34)
Exercises (pg. 1.3-36)
Problems (pg. 1.3-41)
Accounting Decisions and Judgments (pg. 1.3-45)
Appendix-Brief Exercises (pg. 1.3-48)
Appendix-Exercises (pg. 1.3-49)
Appendix-Problems (pg. 1.3-50)
Answers to Review Exercises (pg. 1.3-51)
Chapter 4: Balance Sheet and Financial Reporting (pg. 1.4-1)
LO 4-1: Describe classification of asset, liability, and equity accounts on the balance sheet (pg. 1.4-3)
Current Asset Classification (pg. 1.4-4)
Noncurrent Asset Classification (pg. 1.4-5)
Demo 4-1A: Classifying Assets on the Balance Sheet (pg. 1.4-7)
Current Liability Classification (pg. 1.4-7)
Noncurrent Liability Classification (pg. 1.4-8)
Demo 4-1B: Classifying Liabilities on the Balance Sheet (pg. 1.4-9)
Stockholders’ Equity (pg. 1.4-9)
Demo 4-1C: Stockholders’ Equity Balance Sheet Presentation (pg. 1.4-11)
Review 4-1: Balance Sheet Classification (pg. 1.4-12)
LO 4-2: Prepare a classified balance sheet (pg. 1.4-12)
Demo 4-2: Preparing a Classified Balance Sheet (pg. 1.4-13)
Review 4-2: Preparing a Classified Balance Sheet (pg. 1.4-14)
LO 4-3: Explain notes to financial statements (pg. 1.4-15)
Summary of Significant Accounting Policies (pg. 1.4-16)
Fair Value Measurements (pg. 1.4-17)
Related Party Transactions (pg. 1.4-19)
Subsequent Events (pg. 1.4-20)
Errors, Fraud, and Illegal Acts (pg. 1.4-20)
Demo 4-3: Financial Statement Disclosure (pg. 1.4-21)
Review 4-3: Financial Statement Disclosure (pg. 1.4-22)
LO 4-4: Describe SEC filings of publicly traded companies in the U.S. (pg. 1.4-22)
Selected Content of Form 10-K (pg. 1.4-23)
Demo 4-4: Items of the Annual Report on Form 10-K (pg. 1.4-32)
Review 4-4: Annual Report on Form 10-K (pg. 1.4-32)
Management Judgment (pg. 1.4-33)
Elements Reported in the Balance Sheet (pg. 1.4-33)
Items Reported in Note Disclosures (pg. 1.4-33)
APPENDIX 4A: Identify segment reporting requirements (pg. 1.4-33)
Quantitative Thresholds for Reporting Segments (pg. 1.4-34)
Segment Disclosures (pg. 1.4-35)
Demo 4-5: Segment Reporting (pg. 1.4-36)
Review 4-5: Segment Reporting (pg. 1.4-36)
Questions (pg. 1.4-37)
Data Analytics (pg. 1.4-38)
Data Visualization Activities (pg. 1.4-39)
Brief Exercises (pg. 1.4-39)
Exercises (pg. 1.4-43)
Problems (pg. 1.4-50)
Accounting Decisions and Judgments (pg. 1.4-57)
Appendix-Questions (pg. 1.4-59)
Appendix-Brief Exercises (pg. 1.4-59)
Appendix-Exercises (pg. 1.4-60)
Appendix-Problems (pg. 1.4-61)
Appendix-Accounting Decisions and Judgments (pg. 1.4-62)
Answers to Review Exercises (pg. 1.4-63)
Chapter 5: Statement of Cash Flows and Financial Analysis (pg. 1.5-1)
LO 5-1: Identify operating, investing, and financing activities (pg. 1.5-3)
Cash Flows from Operating Activities (pg. 1.5-3)
Cash Flows from Investing Activities (pg. 1.5-4)
Cash Flows from Financing Activities (pg. 1.5-4)
Demo 5-1: Classification of Cash Flows (pg. 1.5-5)
Review 5-1: Classification of Cash Flows (pg. 1.5-5)
LO 5-2: Prepare a statement of cash flows using the indirect method to present cash flows from oper (pg. 1.5-6)
Cash Flows from Operating Activities (pg. 1.5-6)
Cash Flows from Investing and Financing Activities (pg. 1.5-7)
Financial Statement Disclosures (pg. 1.5-7)
Demo 5-2: Preparing a Statement of Cash Flows (pg. 1.5-8)
Review 5-2: Statement of Cash Flows (pg. 1.5-11)
LO 5-3: Describe the interrelations of financial statements (pg. 1.5-12)
Demo 5-3A: Applying Definitions of Financial Statement Elements (pg. 1.5-13)
Demo 5-3B: Interrelations of Financial Statements (pg. 1.5-16)
Review 5-3: Interrelations of Financial Statements (pg. 1.5-17)
LO 5-4: Perform an investment analysis using the DuPont Framework (pg. 1.5-17)
Return on Equity and its Interpretation Using DuPont Model (pg. 1.5-17)
Demo 5-4A: Component Analysis of DuPont Model (pg. 1.5-18)
Integration of DuPont Model Components (pg. 1.5-19)
Demo 5-4B: Integration Analysis of DuPont Model Components (pg. 1.5-20)
Additional Layers of DuPont Model (pg. 1.5-20)
Demo 5-4C: Additional Layer Analysis of DuPont Model (pg. 1.5-22)
Review 5-4: Investment Analysis Using DuPont Framework (pg. 1.5-23)
LO 5-5: Perform a credit analysis using key ratios (pg. 1.5-23)
Demo 5-5A: Liquidity Ratios (pg. 1.5-25)
Demo 5-5B: Solvency Ratios (pg. 1.5-25)
Review 5-5: Credit Analysis Using Key Ratios (pg. 1.5-27)
Summary of Financial Statement Ratios (pg. 1.5-27)
LO 5-6: Perform horizontal and vertical analyses (pg. 1.5-28)
Demo 5-6A: Horizontal Analysis (pg. 1.5-29)
Demo 5-6B: Vertical Analysis (pg. 1.5-29)
Review 5-6: Horizontal and Vertical Analyses (pg. 1.5-30)
LO 5-7: Recognize non-GAAP financial measures (pg. 1.5-31)
Examples of Non-GAAP Disclosures (pg. 1.5-31)
Disclosure Requirements of Non-GAAP Measures (pg. 1.5-32)
Demo 5-7: Non-GAAP Disclosures (pg. 1.5-33)
Review 5-7: Non-GAAP Disclosures (pg. 1.5-34)
Management Judgment (pg. 1.5-34)
Transactions That Directly Impact Net Cash Flows for a Period (pg. 1.5-34)
Classification of Cash Flows as Operating, Investing, or Financing (pg. 1.5-34)
Reporting of Non-GAAP Measures in Financial Reporting (pg. 1.5-35)
APPENDIX 5A: Prepare the operating activities section of the statement of cash flows using the dire (pg. 1.5-35)
Demo 5-8: Operating Activities Section—Direct Method (pg. 1.5-35)
Review 5-8: Operating Activities Section—Direct Method (pg. 1.5-37)
Questions (pg. 1.5-37)
Data Analytics (pg. 1.5-38)
Data Visualization (pg. 1.5-39)
Brief Exercises (pg. 1.5-39)
Exercises (pg. 1.5-42)
Problems (pg. 1.5-51)
Accounting Decisions and Judgments (pg. 1.5-59)
Appendix-Brief Exercises (pg. 1.5-60)
Appendix-Exercises (pg. 1.5-61)
Appendix-Problems (pg. 1.5-61)
Appendix-Accounting Decisions and Judgments (pg. 1.5-61)
Answers to Review Exercises (pg. 1.5-63)
Chapter 6: Time Value of Money (pg. 1.6-1)
LO 6-1: Explain the calculation of compound interest (pg. 1.6-3)
Annual Compounding (pg. 1.6-3)
Quarterly Compounding (pg. 1.6-3)
Compounding Options (pg. 1.6-4)
Demo 6-1: Compound Interest (pg. 1.6-4)
Review 6-1: Compound Interest (pg. 1.6-4)
LO 6-2: Apply future value concepts to a single amount (pg. 1.6-5)
Future Value of a Single Amount-Computation through Formula (pg. 1.6-6)
Future Value of a Single Amount-Computation through Excel (pg. 1.6-6)
Demo 6-2: Future Value of a Single Amount (pg. 1.6-7)
Review 6-2: Future Value of a Single Amount (pg. 1.6-8)
LO 6-3: Apply present value concepts to a single amount (pg. 1.6-8)
Present Value of a Single Amount-Computation through Formula (pg. 1.6-8)
Present Value of a Single Amount-Computation through Excel (pg. 1.6-9)
Demo 6-3A: Present Value of a Single Amount (pg. 1.6-9)
Demo 6-3B: Solving for Unknown Arguments (pg. 1.6-9)
Demo 6-3C: Fair Value Measurement—Expected Cash Flow Technique (pg. 1.6-11)
Review 6-3: Present Value (pg. 1.6-11)
LO 6-4: Apply future value concepts to an ordinary annuity and an annuity due (pg. 1.6-13)
Future Value of an Ordinary Annuity-Computation through Formula (pg. 1.6-13)
Future Value of an Ordinary Annuity-Computation through Excel (pg. 1.6-13)
Demo 6-4A: Future Value of an Ordinary Annuity (pg. 1.6-14)
Future Value of an Annuity Due-Computation through Formula (pg. 1.6-14)
Future Value of an Annuity Due-Computation through Excel (pg. 1.6-14)
Demo 6-4B: Future Value of an Annuity Due (pg. 1.6-15)
Future Value of a Deferred Annuity (pg. 1.6-15)
Demo 6-4C: Future Value of a Deferred Annuity (pg. 1.6-15)
Review 6-4: Future Value of Annuities (pg. 1.6-16)
LO 6-5: Apply present value concepts to an ordinary annuity and an annuity due (pg. 1.6-16)
Present Value of an Ordinary Annuity-Computation through Formula (pg. 1.6-16)
Present Value of an Ordinary Annuity-Computation through Excel (pg. 1.6-17)
Demo 6-5A: Present Value of an Ordinary Annuity (pg. 1.6-17)
Present Value of an Annuity Due-Computation through Formula (pg. 1.6-17)
Present Value of an Annuity Due-Computation through Excel (pg. 1.6-18)
Demo 6-5B: Present Value of an Annuity Due (pg. 1.6-18)
Present Value of a Deferred Annuity (pg. 1.6-18)
Demo 6-5C: Present Value of a Deferred Annuity (pg. 1.6-19)
Review 6-5: Present Value of Annuities (pg. 1.6-19)
LO 6-6: Apply time value of money concept to common accounting scenarios (pg. 1.6-19)
Bond Issuance Price (pg. 1.6-19)
Lease Payment (pg. 1.6-20)
Pension Obligations (pg. 1.6-20)
Lease or Buy (pg. 1.6-21)
Debt Retirement (pg. 1.6-21)
Demo 6-6: Application of Time Value of Money (pg. 1.6-21)
Review 6-6: Application of Time Value of Money (pg. 1.6-22)
Management Judgment (pg. 1.6-22)
Estimated Rate Requires Judgment (pg. 1.6-22)
Estimated Payment Requires Judgment (pg. 1.6-23)
Estimated Number of Periods Requires Judgment (pg. 1.6-23)
Discount Rate Adjustment Technique vs. Expected Cash Flow Technique (pg. 1.6-23)
APPENDIX 6A: Apply time value of money concept to bond discount amortization (pg. 1.6-23)
Effective Interest Method of Amortization (pg. 1.6-23)
Demo 6-7: Bond Discount Amortization (pg. 1.6-24)
Review 6-7: Note Discount Amortization Schedule (pg. 1.6-24)
APPENDIX 6B: Apply time value of money concept using a financial calculator and compound interest t (pg. 1.6-25)
Time Value of Money-Financial Calculator (pg. 1.6-25)
Demo 6-8A: Time Value of Money—Financial Calculator (pg. 1.6-25)
Time Value of Money-Compound Interest Tables (pg. 1.6-25)
Demo 6-8B: Time Value of Money—Compound Interest Tables (pg. 1.6-28)
Review 6-8: Compound Interest Table (pg. 1.6-31)
Questions (pg. 1.6-31)
Data Analytics (pg. 1.6-32)
Data Visualization (pg. 1.6-33)
Brief Exercises (pg. 1.6-33)
Exercises (pg. 1.6-34)
Problems (pg. 1.6-40)
Accounting Decisions and Judgments (pg. 1.6-45)
Appendices-Brief Exercises (pg. 1.6-48)
Appendices-Exercises (pg. 1.6-48)
Appendices-Problems (pg. 1.6-48)
Answers to Review Exercises (pg. 1.6-49)
Chapter 7: Revenue Recognition (pg. 1.7-1)
LO 7-1: Apply the five-step revenue recognition process (pg. 1.7-3)
Demo 7-1: Application of the Five-Step Revenue Recognition Process (pg. 1.7-4)
Review 7-1: Identify the contract with the customer—Step 1 (pg. 1.7-5)
LO 7-2: Identify the contract with the customer—Step 1 (pg. 1.7-5)
Conditions of a Valid Contract (pg. 1.7-6)
Demo 7-2: Validity of a Contract (pg. 1.7-7)
Review 7-2: Validity of a Contract (pg. 1.7-8)
LO 7-3: Identify the performance obligations in the contract—Step 2 (pg. 1.7-9)
Identification of Separate Performance Obligation(s) (pg. 1.7-9)
Demo 7-3: Identification of Separate Performance Obligation(s) (pg. 1.7-11)
Review 7-3: Identification of Separate Performance Obligation(s) (pg. 1.7-13)
LO 7-4: Determine the transaction price—Step 3 (pg. 1.7-14)
Fixed Consideration (pg. 1.7-14)
Variable Consideration (pg. 1.7-14)
Demo 7-4A: Estimating Transaction Price When It Includes Variable Consideration (pg. 1.7-15)
Demo 7-4B: Reducing the Transaction Price for Consideration Payable (pg. 1.7-17)
Review 7-4: Transaction Price (pg. 1.7-18)
LO 7-5: Allocate the transaction price to performance obligations in the contract—Step 4 (pg. 1.7-19)
Adjusted Market Assessment Approach (pg. 1.7-19)
Expected Cost Plus a Margin Approach (pg. 1.7-20)
Residual Approach (pg. 1.7-20)
Demo 7-5A: Transaction Price Allocation—Standalone Selling Prices Are Observable (pg. 1.7-20)
Demo 7-5B: Transaction Price Allocation—Standalone Selling Prices Are Estimated (pg. 1.7-21)
Review 7-5: Allocation of Transaction Price (pg. 1.7-22)
LO 7-6: Recognize revenue when (or as) the seller satisfies a performance obligation—Step 5 (pg. 1.7-23)
Recognition of Revenue Over Time (pg. 1.7-23)
Recognition of Revenue at a Point in Time (pg. 1.7-24)
Contract Liabilities and Contract Assets (pg. 1.7-24)
Demo 7-6A: Recognition of Revenue at a Point in Time (pg. 1.7-25)
Demo 7-6B: Recognition of Revenue Over Time (pg. 1.7-27)
Demo 7-6C: Recognition of License Revenue (pg. 1.7-30)
Review 7-6: Revenue Recognition (pg. 1.7-31)
LO 7-7: Recognize revenue after a contract modification (pg. 1.7-32)
Demo 7-7: Revenue Recognition with a Contract Modification (pg. 1.7-33)
Review 7-7: Contract Modification (pg. 1.7-34)
LO 7-8: Recognize revenue in more complex revenue arrangements (pg. 1.7-34)
Bill-and-Hold Arrangement (pg. 1.7-34)
Demo 7-8A: Transfer of Control under a Bill-and-Hold Arrangement (pg. 1.7-35)
Demo 7-8B: Transfer of Control under a Consignment Arrangement (pg. 1.7-35)
Repurchase Arrangement (pg. 1.7-36)
Demo 7-8C: Transfer of Control under Repurchase Arrangement (pg. 1.7-37)
Principal/Agent Arrangement (pg. 1.7-38)
Demo 7-8D: Estimating Revenue for Principal and Agent (pg. 1.7-38)
Review 7-8: Complex Revenue Arrangements (pg. 1.7-39)
LO 7-9: Describe accounting for contract costs and disclosure requirements for revenue recognition (pg. 1.7-40)
Contract Costs (pg. 1.7-40)
Demo 7-9: Accounting for and Reporting of Contract Costs (pg. 1.7-41)
Financial Reporting (pg. 1.7-42)
Financial Statement Disclosures (pg. 1.7-42)
Review 7-9: Contract Costs and Revenue Disclosures (pg. 1.7-43)
Management Judgment (pg. 1.7-43)
Step 1: Identify contract(s) with customer (pg. 1.7-44)
Step 2: Identify performance obligation(s) in the contract (pg. 1.7-44)
Step 3: Determine the transaction price (pg. 1.7-44)
Step 4: Allocate transaction price to performance obligation(s) (pg. 1.7-44)
Step 5: Recognize revenue when (or as) each performance obligation is satisfied through a transfer (pg. 1.7-44)
APPENDIX 7A: Apply the revenue recognition process to long-term contracts expected to be profitabl (pg. 1.7-45)
Revenue Recognized Over Time (pg. 1.7-45)
Revenue Recognized at a Point in Time (pg. 1.7-45)
Demo 7-10A: Long-Term Contract: Revenue Recognized Over Time—Cost-to-Cost Basis (pg. 1.7-46)
Demo 7-10B: Long-Term Contract: Revenue Recognized at a Point in Time (pg. 1.7-48)
Review 7-10: Long-Term Profitable Construction Project (pg. 1.7-49)
APPENDIX 7B: Apply the revenue recognition process to long-term contracts expected to be unprofitab (pg. 1.7-49)
Demo 7-11A: Overall Loss on an Unprofitable Contract (pg. 1.7-49)
Demo 7-11B: Current Period Loss on Overall Profitable Contract (pg. 1.7-51)
Review 7-11: Unprofitable Construction Project (pg. 1.7-52)
Questions (pg. 1.7-52)
Data Analysis (pg. 1.7-53)
Data Visualization (pg. 1.7-55)
Brief Exercises (pg. 1.7-55)
Exercises (pg. 1.7-59)
Problems (pg. 1.7-68)
Accounting Decisions and Judgments (pg. 1.7-71)
Appendices-Questions (pg. 1.7-73)
Appendices-Brief Exercises (pg. 1.7-73)
Appendices-Exercises (pg. 1.7-74)
Appendices-Problems (pg. 1.7-75)
Answers to Review Exercises (pg. 1.7-77)
Chapter 8: Cash and Receivables (pg. 1.8-1)
LO 8-1: Classify cash, cash equivalents, restricted cash, and compensating balances (pg. 1.8-3)
Demo 8-1: Reporting Cash, Cash Equivalents, and Other Current Assets (pg. 1.8-4)
Review 8-1: Classification of Cash-Related Items (pg. 1.8-5)
LO 8-2: Account for sales and collections on account including the impact of cash discounts (pg. 1.8-6)
Demo 8-2A: Accounting for Sales and Collections under the Gross Method (pg. 1.8-7)
Demo 8-2B: Accounting for Sales and Collections under the Net Method (pg. 1.8-8)
Review 8-2: Gross Method versus Net Method in Recording Cash Discounts (pg. 1.8-10)
LO 8-3: Account for the impact of sales returns and allowances (pg. 1.8-10)
Demo 8-3: Accounting for Sales Returns (pg. 1.8-11)
Review 8-3: Accounting for Sales Returns (pg. 1.8-12)
LO 8-4: Measure and record accounts receivable at net amount expected to be collected (pg. 1.8-12)
Allowance Method (pg. 1.8-12)
Demo 8-4A: Entries Under the Allowance Method (pg. 1.8-14)
Estimating Accounts Receivable at Net Amount Expected to be Collected (pg. 1.8-15)
Demo 8-4B: Adjusting Accounts Receivable to Net Amount Expected to Be Collected (pg. 1.8-17)
Review 8-4: Measuring and Recording Receivables at Net Amount Expected to Be Collected (pg. 1.8-19)
LO 8-5: Measure and record notes receivable (pg. 1.8-20)
Demo 8-5A: Noncurrent Note Receivable [Stated Rate = 10%; Market Rate = 10%] (pg. 1.8-20)
Demo 8-5B: Noncurrent Note Receivable [Stated Rate = 3%; Market Rate = 10%] (pg. 1.8-22)
Demo 8-5C: Noncurrent Note Receivable [Stated Rate = 0%; Market Rate = 10%] (pg. 1.8-23)
Demo 8-5D: Noncurrent Note Receivable [Stated Rate = 10%; Market Rate = 6%] (pg. 1.8-25)
Review 8-5: Measuring of Note Receivable and Interest (pg. 1.8-26)
LO 8-6: Account for the sale of receivables and use as collateral for borrowing (pg. 1.8-26)
Using Accounts Receivable as Collateral for Borrowing (pg. 1.8-27)
Demo 8-6A: Using Receivables as Collateral for Borrowing (pg. 1.8-27)
Sale of Accounts Receivable Without Recourse (pg. 1.8-28)
Demo 8-6B: Sale of Receivables Without Recourse (pg. 1.8-29)
Sale of Accounts Receivable with Recourse (pg. 1.8-29)
Demo 8-6C: Sale of Receivables with Recourse (pg. 1.8-29)
Discounting a Note Receivable (pg. 1.8-30)
Demo 8-6D: Discounting a Note Receivable (pg. 1.8-30)
Review 8-6: Secured Borrowings and Sales of Receivables (pg. 1.8-31)
LO 8-7: Describe receivables disclosures and ratio analyses (pg. 1.8-32)
Receivable Disclosures (pg. 1.8-32)
Accounts Receivable Ratios (pg. 1.8-33)
Demo 8-7: Accounts Receivable Ratios (pg. 1.8-33)
Review 8-7: Accounts Receivable Ratios (pg. 1.8-34)
Management Judgment (pg. 1.8-34)
Accounting for Receivables (pg. 1.8-34)
Guidance for Management Judgment (pg. 1.8-35)
APPENDIX 8A: Apply cash controls (pg. 1.8-35)
Cash Reconciliations (pg. 1.8-35)
Demo 8-8A: Cash Reconciliations (pg. 1.8-36)
Bank Reconciliation (pg. 1.8-37)
Demo 8-8B: Bank Reconciliation (pg. 1.8-37)
Review 8-8: Cash Controls (pg. 1.8-40)
APPENDIX 8B: Account for impairment of noncurrent receivables (pg. 1.8-41)
Demo 8-9: Recording Impairment of a Note Receivable (pg. 1.8-41)
Review 8-9: Impairment of a Note Receivable (pg. 1.8-43)
Questions (pg. 1.8-43)
Data Analytics (pg. 1.8-44)
Data Visualization (pg. 1.8-45)
Brief Exercises (pg. 1.8-45)
Exercises (pg. 1.8-46)
Problems (pg. 1.8-53)
Accounting Decisions and Judgments (pg. 1.8-58)
Appendices-Questions (pg. 1.8-62)
Appendices-Brief Exercises (pg. 1.8-63)
Appendices-Exercises (pg. 1.8-64)
Appendices-Problems (pg. 1.8-66)
Answers to Review Exercises (pg. 1.8-68)
Chapter 9: Inventory: Measurement (pg. 1.9-1)
LO 9-1: Determine the initial recognition and measurement of inventory (pg. 1.9-3)
Recognition of Inventory (pg. 1.9-3)
Initial Measurement of Inventory (pg. 1.9-4)
Demo 9-1: Recognition and Measurement of Inventory (pg. 1.9-5)
Review 9-1: Measurement of Ending Inventory (pg. 1.9-6)
LO 9-2: Demonstrate accounting in a periodic inventory system (pg. 1.9-7)
Cost Flow in a Periodic System (pg. 1.9-7)
Accounting for Purchase Discounts in a Periodic System (pg. 1.9-7)
Demo 9-2A: Periodic Inventory System—Gross Method (pg. 1.9-8)
Demo 9-2B: Periodic Inventory System—Net Method (pg. 1.9-9)
Review 9-2: Periodic Inventory System (pg. 1.9-9)
LO 9-3: Demonstrate specific identification, average cost, FIFO, and LIFO in a periodic inventory s (pg. 1.9-10)
Inventory Cost-Flow Assumptions in a Periodic Inventory System (pg. 1.9-10)
Demo 9-3A: Specific Identification—Periodic Inventory System (pg. 1.9-11)
Demo 9-3B: Average Cost—Periodic Inventory System (pg. 1.9-12)
Demo 9-3C: FIFO—Periodic Inventory System (pg. 1.9-13)
Demo 9-3D: LIFO—Periodic Inventory System (pg. 1.9-13)
Review 9-3: Inventory Methods under the Periodic Inventory System (pg. 1.9-15)
LO 9-4: Demonstrate accounting in a perpetual inventory system (pg. 1.9-15)
Cost Flow in a Perpetual System (pg. 1.9-15)
Demo 9-4A: Perpetual Inventory System—Gross Method (pg. 1.9-16)
Demo 9-4B: Perpetual Inventory System—Net Method (pg. 1.9-17)
Review 9-4: Perpetual Inventory System (pg. 1.9-18)
LO 9-5: Demonstrate moving average, FIFO, and LIFO in a perpetual inventory system (pg. 1.9-18)
Demo 9-5A: Moving Average—Perpetual Inventory System (pg. 1.9-18)
Demo 9-5B: FIFO—Perpetual Inventory System (pg. 1.9-19)
Demo 9-5C: LIFO—Perpetual Inventory System (pg. 1.9-20)
Review 9-5: Inventory Methods under a Perpetual Inventory System (pg. 1.9-21)
LO 9-6: Explain and compute a LIFO reserve (pg. 1.9-21)
Demo 9-6: LIFO Reserve (pg. 1.9-22)
Review 9-6: LIFO Reserve (pg. 1.9-22)
LO 9-7: Describe and compute the effect of LIFO liquidation (pg. 1.9-23)
Demo 9-7: Computation of LIFO Liquidation (pg. 1.9-23)
Review 9-7: LIFO Liquidation (pg. 1.9-24)
LO 9-8: Apply the dollar-value LIFO method (pg. 1.9-24)
Step One: Restate Ending Inventory at Base Year Dollars (pg. 1.9-25)
Step Two: Arrange Restated Inventory into Layers (pg. 1.9-25)
Step Three: Match Layers to Price Indices (pg. 1.9-25)
Step Four: Restate Layers of Inventory into Current Year Dollars (pg. 1.9-25)
Demo 9-8: Dollar-Value LIFO Method (pg. 1.9-25)
Review 9-8: Dollar-Value LIFO Method (pg. 1.9-27)
LO 9-9: Perform inventory ratio analysis and interpretation (pg. 1.9-27)
Demo 9-9: Inventory Ratio Analysis and Interpretation (pg. 1.9-28)
Review 9-9: Inventory Ratio Analysis (pg. 1.9-29)
Management Judgment (pg. 1.9-29)
Management Choice of Inventory Method (pg. 1.9-29)
Disclosure of Inventory Method (pg. 1.9-30)
Management Decisions in Measuring Inventory (pg. 1.9-30)
Questions (pg. 1.9-30)
Data Analytics (pg. 1.9-31)
Data Visualization (pg. 1.9-32)
Brief Exercises (pg. 1.9-32)
Exercises (pg. 1.9-34)
Problems (pg. 1.9-41)
Accounting Decisions and Judgments (pg. 1.9-48)
Answers to Review Exercises (pg. 1.9-52)
Chapter 10: Inventory: Additional Issues (pg. 1.10-1)
LO 10-1: Apply lower of cost or net realizable value rule to inventory (pg. 1.10-3)
Lower of Cost or Net Realizable Value Rule (pg. 1.10-3)
Demo 10-1: Lower of Cost or Net Realizable Value Rule (pg. 1.10-5)
Review 10-1: Application of Lower of Cost or Net Realizable Value Rule (pg. 1.10-6)
LO 10-2: Apply lower of cost or market rule to inventory (pg. 1.10-7)
Demo 10-2: Lower of Cost or Market Rule (pg. 1.10-8)
Review 10-2: Application of Lower of Cost or Market Rule (pg. 1.10-9)
LO 10-3: Demonstrate the relative sales value method to allocate costs to inventory (pg. 1.10-9)
Demo 10-3: Relative Sales Value Method (pg. 1.10-9)
Review 10-3: Relative Sales Value Method (pg. 1.10-10)
LO 10-4: Demonstrate the gross profit method to estimate inventory (pg. 1.10-11)
Gross Profit Method-Uses and Limitations (pg. 1.10-11)
Demo 10-4: Estimate Inventory Using Gross Profit Method (pg. 1.10-12)
Review 10-4: Gross Profit Method (pg. 1.10-12)
LO 10-5: Demonstrate accounting for purchase commitments (pg. 1.10-12)
Demo 10-5: Purchase Commitment (pg. 1.10-13)
Review 10-5: Purchase Commitment (pg. 1.10-14)
LO 10-6: Describe the accounting treatment for changes in inventory methods (pg. 1.10-14)
Demo 10-6A: Change in Inventory Method—Retrospective Approach (pg. 1.10-16)
Demo 10-6B: Change in Inventory Method—Prospective Approach (pg. 1.10-18)
Review 10-6: Change in Inventory Method (pg. 1.10-18)
LO 10-7: Describe accounting treatment of inventory errors (pg. 1.10-19)
Demo 10-7: Inventory Errors (pg. 1.10-19)
Review 10-7: Inventory Errors (pg. 1.10-21)
LO 10-8: Estimate ending inventory using the average cost and conventional retail methods (pg. 1.10-21)
Average Cost and Conventional Retail Inventory Methods (pg. 1.10-22)
Demo 10-8A: Retail Inventory Method—Average Cost Method (pg. 1.10-23)
Demo 10-8B: Retail Inventory Method—Conventional Method (pg. 1.10-23)
Demo 10-8C: Retail Inventory Method—Conventional Method with Complications (pg. 1.10-25)
Review 10-8: Retail Inventory Method—Conventional Method (pg. 1.10-26)
Management Judgment (pg. 1.10-26)
Lower of Cost or Net Realizable Value (or Market) Rule (pg. 1.10-26)
Retail Inventory Method (pg. 1.10-26)
Purchase Commitments (pg. 1.10-27)
Gross Profit Method (pg. 1.10-27)
APPENDIX 10A: Estimate ending inventory using LIFO retail and dollar-value LIFO retail methods (pg. 1.10-27)
LIFO Retail Method (pg. 1.10-27)
Demo 10-9A: LIFO Retail Method (pg. 1.10-27)
Dollar-Value LIFO Retail Inventory Method (pg. 1.10-28)
Demo 10-9B: Dollar-Value LIFO Method (pg. 1.10-28)
Review 10-9: LIFO Retail and Dollar-Value LIFO Retail Methods (pg. 1.10-31)
Questions (pg. 1.10-32)
Data Analytics (pg. 1.10-32)
Data Visualization (pg. 1.10-33)
Brief Exercises (pg. 1.10-33)
Exercises (pg. 1.10-36)
Problems (pg. 1.10-43)
Accounting Decisions and Judgments (pg. 1.10-49)
Appendix-Questions (pg. 1.10-51)
Appendix-Brief Exercises (pg. 1.10-51)
Appendix-Exercises (pg. 1.10-51)
Appendix-Problems (pg. 1.10-53)
Answers to Review Exercises (pg. 1.10-54)
Chapter 11: Property, Plant, and Equipment: Acquisition and Disposition (pg. 1.11-1)
LO 11-1: Determine costs to capitalize for land, land improvements, equipment, buildings, and const (pg. 1.11-3)
Categories of Fixed Assets (pg. 1.11-3)
Demo 11-1A: Acquisition Costs Classified as Property, Plant, & Equipment (pg. 1.11-5)
Self-Constructed Assets (pg. 1.11-6)
Demo 11-1B: Self-Constructed Assets (pg. 1.11-6)
Review 11-1: Property, Plant, and Equipment Cost Classification (pg. 1.11-7)
LO 11-2: Determine costs to capitalize for lump-sum purchases of property, plant, and equipment (pg. 1.11-7)
Demo 11-2: Lump-Sum Purchase (pg. 1.11-8)
Review 11-2: Lump-Sum Purchase (pg. 1.11-8)
LO 11-3: Account for acquisition of property, plant, and equipment through debt and equity issuance (pg. 1.11-9)
Acquisition of Property, Plant, and Equipment Using Debt (pg. 1.11-9)
Demo 11-3A: Acquisition of Equipment Using a Note Payable (pg. 1.11-9)
Acquisition of Property, Plant, and Equipment Using Equity (pg. 1.11-10)
Demo 11-3B: Acquisition of Equipment Using Common Stock (pg. 1.11-11)
Review 11-3: Acquisition of Property, Plant, and Equipment Using Debt and Equity (pg. 1.11-11)
LO 11-4: Account for contributed property, plant, and equipment (pg. 1.11-12)
Demo 11-4: Accounting for Receipt of a Donated Building (pg. 1.11-12)
Review 11-4: Receipt of a Donated Building (pg. 1.11-13)
LO 11-5: Calculate capitalized interest (pg. 1.11-13)
Calculation of Capitalized Interest (pg. 1.11-13)
Demo 11-5: Interest Capitalization (pg. 1.11-15)
Review 11-5: Interest Capitalization (pg. 1.11-18)
LO 11-6: Account for asset retirement obligations (pg. 1.11-18)
Demo 11-6: Asset Retirement Obligation (pg. 1.11-19)
Review 11-6: Asset Retirement Obligation (pg. 1.11-20)
LO 11-7: Account for property, plant, and equipment related costs after acquisition (pg. 1.11-21)
Management Judgment (pg. 1.11-22)
Capitalizing Fixed Assets (pg. 1.11-22)
Demo 11-7: Accounting for Costs Subsequent to Acquisition (pg. 1.11-22)
Review 11-7: Accounting for Costs Subsequent to Acquisition (pg. 1.11-23)
LO 11-8: Account for disposal of property, plant, and equipment (pg. 1.11-24)
Demo 11-8: Disposal of Property, Plant, and Equipment (pg. 1.11-24)
Review 11-8: Disposal of Property, Plant, and Equipment (pg. 1.11-25)
LO 11-9: Account for exchange of property, plant, and equipment (pg. 1.11-25)
Demo 11-9A: Exchange of Equipment—Full Gain and Loss Recognized (pg. 1.11-26)
Demo 11-9B: Exchange of Equipment—Partial or No Gain Recognized (pg. 1.11-27)
Review 11-9: Exchange of Assets (pg. 1.11-28)
Questions (pg. 1.11-29)
Data Analytics (pg. 1.11-30)
Data Visualization (pg. 1.11-30)
Brief Exercises (pg. 1.11-30)
Exercises (pg. 1.11-33)
Problems (pg. 1.11-39)
Accounting Decisions and Judgments (pg. 1.11-45)
Answers to Review Exercises (pg. 1.11-49)
Chapter 12: Depreciation, Impairments, and Depletion (pg. 1.12-1)
LO 12-1: Calculate depreciation using straight-line, sum-of-the-years’-digits, declining-balance, (pg. 1.12-3)
Calculation of Depreciation Expense (pg. 1.12-4)
Demo 12-1A: Straight-Line Depreciation Method (pg. 1.12-4)
Demo 12-1B: Sum-of-the-Years’-Digits Depreciation Method (pg. 1.12-6)
Demo 12-1C: Double-Declining-Balance Depreciation Method (pg. 1.12-7)
Demo 12-1D: Units-of-Production Depreciation Method (pg. 1.12-8)
Comparison of Depreciation Methods (pg. 1.12-9)
Review 12-1: Depreciation Methods (pg. 1.12-10)
LO 12-2: Account for depreciation in partial periods (pg. 1.12-11)
Demo 12-2A: Depreciation Prorated for Partial Period (pg. 1.12-11)
Demo 12-2B: Policy Convention Applied to Partial Period (pg. 1.12-13)
Review 12-2: Partial Period Depreciation (pg. 1.12-13)
LO 12-3: Calculate depreciation using group and composite depreciation methods (pg. 1.12-14)
Demo 12-3: Composite Depreciation Method (pg. 1.12-15)
Review 12-3: Composite Depreciation Method (pg. 1.12-16)
LO 12-4: Account for changes in estimate as they relate to depreciation (pg. 1.12-16)
Demo 12-4: Change in Accounting Estimate (pg. 1.12-17)
Review 12-4: Change in Accounting Estimate (pg. 1.12-17)
LO 12-5: Account for changes in depreciation methods (pg. 1.12-18)
Demo 12-5: Change in Depreciation Method (pg. 1.12-18)
Review 12-5: Change in Depreciation Method (pg. 1.12-19)
LO 12-6: Account for errors in reporting property, plant, and equipment (pg. 1.12-19)
Demo 12-6: Correction of Error (pg. 1.12-20)
Review 12-6: Correction of Depreciation Error (pg. 1.12-20)
LO 12-7: Account for impairment of property, plant, and equipment (pg. 1.12-20)
Identification of Asset Impairment (pg. 1.12-20)
Demo 12-7: Impairment of Fixed Assets (pg. 1.12-22)
Review 12-7: Impairment of Fixed Assets (pg. 1.12-23)
LO 12-8: Account for assets held for sale (pg. 1.12-23)
Demo 12-8: Asset Held for Sale (pg. 1.12-24)
Review 12-8: Assets Held for Sale (pg. 1.12-25)
LO 12-9: Describe property, plant, and equipment disclosures and ratio analyses (pg. 1.12-26)
Ratio Analysis (pg. 1.12-26)
Relation between Depreciation Method and Return on Assets (pg. 1.12-26)
Demo 12-9: Ratio Analysis (pg. 1.12-27)
Review 12-9: Ratio Analysis (pg. 1.12-28)
LO 12-10: Record acquisition and depletion of natural resources (pg. 1.12-28)
Demo 12-10A: Natural Resource Acquisition, Depletion, and Sale (pg. 1.12-29)
Demo 12-10B: Depletion of Exploration Costs in Oil and Gas (pg. 1.12-31)
Review 12-10: Accounting for Natural Resources (pg. 1.12-32)
Management Judgment (pg. 1.12-32)
Grouping Assets for Impairment Testing (pg. 1.12-32)
Applying Impairment Testing (pg. 1.12-32)
Management Judgment Highlighted in Financial Reporting (pg. 1.12-32)
APPENDIX 12A: Calculate MACRS (tax) depreciation (pg. 1.12-33)
Demo 12-11: MACRS Depreciation Calculation (pg. 1.12-34)
Review 12-11: MACRS Depreciation (pg. 1.12-34)
Questions (pg. 1.12-34)
Data Analytics (pg. 1.12-35)
Data Visualization (pg. 1.12-35)
Brief Exercises (pg. 1.12-35)
Exercises (pg. 1.12-38)
Problems (pg. 1.12-46)
Accounting Decisions and Judgments (pg. 1.12-52)
Appendix-Questions (pg. 1.12-56)
Appendix-Brief Exercises (pg. 1.12-56)
Appendix-Exercises (pg. 1.12-56)
Appendix-Problem (pg. 1.12-57)
Answers to Review Exercises (pg. 1.12-57)
Chapter 13: Intangible Assets and Goodwill (pg. 1.13-1)
LO 13-1: Identify and classify intangible items (pg. 1.13-3)
Identification of Assets: Intangible Assets and Goodwill (pg. 1.13-3)
Recognition of Expenses: Internally Generated Intangible Assets and Goodwill (pg. 1.13-5)
Demo 13-1: Classification of Intangible Items (pg. 1.13-7)
Review 13-1: Classification of Intangible Items (pg. 1.13-8)
LO 13-2: Determine the initial and subsequent measurements of finite life intangible assets (pg. 1.13-9)
Initial Measurement of Finite Life Intangible Assets (pg. 1.13-9)
Subsequent Measurement of Finite Life Intangible Assets (pg. 1.13-9)
Demo 13-2: Initial and Subsequent Measurement of Intangible Asset (pg. 1.13-10)
Review 13-2: Subsequent Measurement of Finite Life Intangible Assets (pg. 1.13-11)
LO 13-3: Account for impairment and derecognition of finite life intangible assets (pg. 1.13-12)
Impairment of Finite Life Intangible Assets (pg. 1.13-12)
Demo 13-3A: Impairment of Finite Life Intangible Asset—Patent (pg. 1.13-12)
Derecognition of Finite Life Intangible Assets (pg. 1.13-13)
Demo 13-3B: Derecognition of Intangible Asset—Patent (pg. 1.13-13)
Review 13-3: Impairment and Derecognition of a Patent (pg. 1.13-14)
LO 13-4: Account for changes in estimates in finite life intangible assets (pg. 1.13-14)
Demo 13-4: Change in Estimate—Intangible Asset (pg. 1.13-14)
Review 13-4: Change in Estimate—Patent (pg. 1.13-15)
LO 13-5: Change in Estimate—Patent (pg. 1.13-15)
Demo 13-5: Recording of Goodwill (pg. 1.13-16)
Review 13-5: Recording of Goodwill (pg. 1.13-18)
LO 13-6: Account for impairment of indefinite life intangible assets and goodwill (pg. 1.13-19)
Impairment of Indefinite Life Intangible Assets (pg. 1.13-19)
Demo 13-6A: Impairment of Indefinite Life Intangible Asset—Trade Name (pg. 1.13-20)
Impairment of Goodwill (pg. 1.13-20)
Demo 13-6B: Impairment of Goodwill (pg. 1.13-21)
Derecognition of Indefinite Life Intangible Assets (pg. 1.13-23)
Review 13-6: Impairment of Indefinite Life Intangible and Goodwill (pg. 1.13-23)
LO 13-7: Account for research and development costs (pg. 1.13-23)
Identifying Research and Development Expense (pg. 1.13-24)
Demo 13-7A: Identification of Research and Development Expense (pg. 1.13-25)
Accounting for Software Research and Development Costs (pg. 1.13-25)
Demo 13-7B: Accounting for Software Research and Development Costs (pg. 1.13-28)
Review 13-7: Research and Development Costs (pg. 1.13-29)
Management Judgment (pg. 1.13-29)
Identification of Intangibles in a Business Combination (pg. 1.13-29)
Useful Life (pg. 1.13-30)
Impairment Testing (pg. 1.13-30)
Identification of Research and Development Costs (pg. 1.13-30)
Software Development (pg. 1.13-30)
Questions (pg. 1.13-30)
Data Analytics (pg. 1.13-31)
Data Visualization (pg. 1.13-31)
Brief Exercises (pg. 1.13-31)
Exercises (pg. 1.13-34)
Problems (pg. 1.13-40)
Accounting Decisions and Judgments (pg. 1.13-43)
Answers to Review Exercises (pg. 1.13-46)
Chapter 14: Investments in Debt and Equity Securities (pg. 1.14-1)
Expanded Chapter Preview (pg. 1.14-3)
LO 14-1: Account for debt securities measured at amortized cost (pg. 1.14-4)
Held-to-Maturity Securities (pg. 1.14-4)
Measurement of HTM Securities (pg. 1.14-5)
HTM Investment Purchased at Face Value (pg. 1.14-6)
Demo 14-1A: HTM Investment Purchased at Face Value (pg. 1.14-6)
HTM Investment Purchased at a Discount-Effective Interest Method (pg. 1.14-6)
Demo 14-1B: HTM Investment Purchased at a Discount (Effective Interest) (pg. 1.14-7)
HTM Investment Purchased at a Premium-Effective Interest Method (pg. 1.14-8)
Demo 14-1C: HTM Investment Purchased at a Premium (Effective Interest) (pg. 1.14-8)
HTM Investment-Straight-Line Interest Method (pg. 1.14-10)
Demo 14-1D: HTM Investment Purchased at a Discount (Straight-Line Interest) (pg. 1.14-10)
Demo 14-1E: HTM Investment Purchased at a Premium (Straight-Line Interest) (pg. 1.14-11)
Review 14-1: HTM Debt Investments at Amortized Cost (pg. 1.14-12)
LO 14-2: Account for debt securities measured at FV‑NI (pg. 1.14-12)
Trading Securities (pg. 1.14-12)
Demo 14-2A: Trading Securities Investment (pg. 1.14-13)
Demo 14-2B: Fair Value Option Accounting—Debt Security (pg. 1.14-16)
Review 14-2: Accounting for TS Debt Investment at FV‑NI (pg. 1.14-16)
LO 14-3: Account for debt securities measured at FV-OCI (pg. 1.14-17)
Available-for-Sale Securities (pg. 1.14-17)
Demo 14-3A: Available-for-Sale Securities—Bonds (pg. 1.14-18)
Demo 14-3B: Portfolio of Available-for-Sale Securities—Bonds (pg. 1.14-21)
Review 14-3: Accounting for AFS Debt Investment at FV-OCI (pg. 1.14-23)
Review of Accounting for Debt Securities (pg. 1.14-24)
Impact Investments (pg. 1.14-25)
LO 14-4: Account for equity securities measured at FV‑NI (pg. 1.14-25)
Demo 14-4: Equity Investments Measured at FV‑NI (pg. 1.14-26)
Review 14-4: Accounting for Investments Measured at FV‑NI (pg. 1.14-29)
LO 14-5: Account for equity securities following the equity method (pg. 1.14-29)
Demo 14-5: Equity Method Accounting (pg. 1.14-31)
Review 14-5: Investment in Common Stock under the Equity Method (pg. 1.14-33)
Review of Accounting for Equity Securities (pg. 1.14-33)
LO 14-6: Adjust debt and equity securities for impairment (pg. 1.14-34)
Held-to-Maturity Debt Investment (pg. 1.14-34)
Available-for-Sale Debt Investment (pg. 1.14-34)
Equity Method Investment (pg. 1.14-35)
Demo 14-6: Loss on Impairment of Investments (pg. 1.14-36)
Review 14-6: Accounting for Impairment Loss on AFS Investments (pg. 1.14-37)
Management Judgment (pg. 1.14-37)
Classification of Debt Securities (pg. 1.14-37)
Classification of Equity Securities (pg. 1.14-37)
Estimating Fair Value (pg. 1.14-38)
Impairment of Certain Securities (pg. 1.14-38)
APPENDIX 14A: Explain the accounting for transfers of investments (pg. 1.14-38)
Demo 14-7: Accounting for Transfer of Investment (pg. 1.14-39)
Review 14-7: Accounting for Transfer of Investment (pg. 1.14-39)
APPENDIX 14B: Describe accounting for special-purpose funds and investments in life insurance polic (pg. 1.14-40)
Special-Purpose Fund (pg. 1.14-40)
Investment in Life Insurance Policies (pg. 1.14-40)
Demo 14-8: Accounting for Other Investments (pg. 1.14-40)
Review 14-8: Accounting for Other Investments (pg. 1.14-41)
APPENDIX 14C: Describe and account for derivatives (pg. 1.14-42)
Speculative Derivative Instrument-Call Option on Stock (pg. 1.14-42)
Demo 14-9A: Call Option as a Speculative Investment— Underlying Is Fair Value of Stock (pg. 1.14-43)
Hedging Derivative Instrument-Put Option as a Fair Value Hedge (pg. 1.14-44)
Demo 14-9B: Put Option as a Fair Value Hedge—Underlying Is an Asset (pg. 1.14-45)
Hedging Derivative Instrument-Interest Rate Swap as a Fair Value Hedge (pg. 1.14-46)
Demo 14-9C: Interest Rate Swap as a Fair Value Hedge—Underlying Is a Liability (pg. 1.14-47)
Hedging Derivative Instrument-Cash Flow Hedge (pg. 1.14-48)
Demo 14-9D: Futures Contract as a Cash Flow Hedge—Underlying Is the Market Price of a Purchase (pg. 1.14-49)
Summary of Derivative Instruments (pg. 1.14-50)
Review 14-9: Accounting for Derivatives (pg. 1.14-51)
Questions (pg. 1.14-52)
Data Analytics (pg. 1.14-53)
Data Visualization (pg. 1.14-53)
Brief Exercises (pg. 1.14-53)
Exercises (pg. 1.14-57)
Problems (pg. 1.14-66)
Accounting Decisions and Judgments (pg. 1.14-73)
Appendices-Brief Exercises (pg. 1.14-79)
Appendices-Exercises (pg. 1.14-80)
Appendices-Problems (pg. 1.14-82)
Answers to Review Exercises (pg. 1.14-83)
Chapter 15: Current Liabilities and Contingencies (pg. 1.15-1)
LO 15-1: Record accounts payable and sales taxes payable (pg. 1.15-3)
Current Liabilities (pg. 1.15-3)
Measurement of Current Liabilities (pg. 1.15-3)
Accounts Payable (pg. 1.15-3)
Demo 15-1A: Accounting for Accounts Payable (pg. 1.15-4)
Sales Taxes Payable (pg. 1.15-4)
Demo 15-1B: Accounting for Sales Taxes Payable (pg. 1.15-4)
Review 15-1: Recording Accounts Payable and Sales Taxes Payable (pg. 1.15-6)
LO 15-2: Record customer deposits and advances (pg. 1.15-6)
Customer Returnable Deposits (pg. 1.15-6)
Demo 15-2A: Accounting for Returnable Deposits (pg. 1.15-7)
Customer Advance Payments (pg. 1.15-8)
Demo 15-2B: Accounting for Customer Advance Payments (pg. 1.15-8)
Demo 15-2C: Accounting for Gift Cards (pg. 1.15-9)
Review 15-2: Recording Customer Deposits and Advances (pg. 1.15-10)
LO 15-3: Record accruals for payroll, compensated absences, bonuses, and defined contribution plans (pg. 1.15-11)
Withholdings from Employee Payroll (pg. 1.15-11)
Demo 15-3A: Recording Employee Payroll Withholdings (pg. 1.15-11)
Accrual for Employer Payroll Taxes (pg. 1.15-12)
Demo 15-3B: Recording Employer Payroll Taxes (pg. 1.15-12)
Accrual for Compensated Absences (pg. 1.15-12)
Demo 15-3C: Recording Compensated Absences (pg. 1.15-13)
Accrual for Bonus Agreements (pg. 1.15-13)
Demo 15-3D: Recording Bonus Accruals (pg. 1.15-14)
Obligation for Defined Contribution Plans (pg. 1.15-14)
Review 15-3: Payroll Withholding and Taxes, Compensated Absences, and Bonuses (pg. 1.15-15)
LO 15-4: Account for short-term debt and classify debt on the balance sheet (pg. 1.15-15)
Short-Term Note Payable-Interest-Bearing (pg. 1.15-16)
Demo 15-4A: Short-Term Note Payable—Interest-Bearing (pg. 1.15-17)
Short-Term Note Payable-Noninterest-Bearing (pg. 1.15-17)
Demo 15-4B: Short-Term Note Payable—Noninterest-Bearing (pg. 1.15-18)
Balance Sheet Classification of Debt (pg. 1.15-19)
Demo 15-4C: Balance Sheet Classification of Debt (pg. 1.15-20)
Review 15-4: Accounting for and Reporting Debt (pg. 1.15-21)
LO 15-5: Describe accounting for subsequent events and contingencies including litigation, warrantie (pg. 1.15-22)
Loss Contingencies (pg. 1.15-23)
Demo 15-5A: Accounting for Loss Contingencies (pg. 1.15-24)
Subsequent Events (pg. 1.15-25)
Demo 15-5B: Accounting for Subsequent Events (pg. 1.15-27)
Special Loss Contingencies (pg. 1.15-28)
Demo 15-5C: Accounting for Warranty Loss Contingencies (pg. 1.15-30)
Gain Contingencies (pg. 1.15-32)
Demo 15-5D: Accounting for a Gain Contingency (pg. 1.15-32)
Review 15-5: Reporting of Contingencies and Subsequent Events (pg. 1.15-32)
LO 15-6: Explain liability and contingency disclosures and analyses using liquidity ratios (pg. 1.15-33)
Disclosure of Current Liabilities and Contingencies (pg. 1.15-33)
Liquidity Ratios and Analyses (pg. 1.15-35)
Demo 15-6: Liquidity Ratios (pg. 1.15-36)
Review 15-6: Calculating Liquidity Ratios (pg. 1.15-37)
Management Judgment (pg. 1.15-37)
Accounting for Contingencies (pg. 1.15-37)
Ratio Analysis (pg. 1.15-37)
Questions (pg. 1.15-37)
Data Analytics (pg. 1.15-38)
Data Visualization (pg. 1.15-39)
Brief Exercises (pg. 1.15-39)
Exercises (pg. 1.15-42)
Problems (pg. 1.15-49)
Accounting Decisions and Judgments (pg. 1.15-53)
Answers to Review Exercises (pg. 1.15-58)
Chapter 16: Long-Term Liabilities (pg. 1.16-1)
LO 16-1: Identify types and features of bonds (pg. 1.16-3)
Bond (pg. 1.16-3)
Bond Types (pg. 1.16-4)
Demo 16-1A: Bond Types (pg. 1.16-4)
Bond Features (pg. 1.16-4)
Demo 16-1B: Bond Features (pg. 1.16-5)
Review 16-1: Bond Types and Features (pg. 1.16-6)
LO 16-2: Measure and record bonds at issuance (pg. 1.16-6)
Bond Selling Price at Issuance (pg. 1.16-6)
Demo 16-2: Determining Selling Price of Bonds at Issuance (pg. 1.16-7)
Review 16-2: Pricing Bonds at Issuance (pg. 1.16-10)
LO 16-3: Account for bonds issued at face value (pg. 1.16-10)
Demo 16-3: Account for Bonds Issued at Face Value (pg. 1.16-10)
Review 16-3: Account for Bonds Issued at Face Value (pg. 1.16-11)
LO 16-4: Account for bonds issued at a discount (pg. 1.16-11)
Effective Interest Method (pg. 1.16-11)
Straight-Line Interest Method (pg. 1.16-11)
Demo 16-4A: Account for Bonds Issued at a Discount [Effective Interest Method] (pg. 1.16-12)
Demo 16-4B: Account for Bonds Issued at a Discount [Straight-Line Interest Method] (pg. 1.16-14)
Demo 16-4C: Account for Debt Issuance Costs (pg. 1.16-16)
Review 16-4: Account for Bonds Issued at a Discount (pg. 1.16-17)
LO 16-5: Account for bonds issued at a premium (pg. 1.16-17)
Effective Interest Method (pg. 1.16-17)
Straight-Line Interest Method (pg. 1.16-17)
Demo 16-5A: Account for Bonds Issued at a Premium [Effective Interest Method] (pg. 1.16-18)
Demo 16-5B: Account for Bonds Issued at a Premium [Straight-Line Interest Method] (pg. 1.16-19)
Review 16-5: Account for Bonds Issued at a Premium (pg. 1.16-21)
LO 16-6: Measure and record notes at issuance and after issuance (pg. 1.16-21)
Notes Payable Issued for Cash (pg. 1.16-21)
Demo 16-6A: Note Payable Issued for Cash (pg. 1.16-22)
Notes Payable Issued for Noncash Consideration (pg. 1.16-24)
Demo 16-6B: Note Payable Issued for Noncash Consideration (pg. 1.16-25)
Review 16-6: Accounting for Notes Payable (pg. 1.16-28)
LO 16-7: Account for extinguishment of debt (pg. 1.16-29)
Early Debt Extinguishment (pg. 1.16-29)
Accounting for Early Debt Extinguishment (pg. 1.16-29)
Demo 16-7: Extinguishment of Debt (pg. 1.16-30)
Review 16-7: Accounting for Extinguishment of Debt (pg. 1.16-31)
LO 16-8: Account for conversion of debt into equity (pg. 1.16-31)
Accounting for Convertible Debt (pg. 1.16-32)
Demo 16-8: Accounting for Convertible Debt (pg. 1.16-33)
Review 16-8: Accounting for Conversion of Debt (pg. 1.16-34)
LO 16-9: Account for bonds with stock warrants (pg. 1.16-34)
Demo 16-9: Accounting for Bonds with Stock Warrants (pg. 1.16-35)
Review 16-9: Accounting for Bonds with Stock Warrants (pg. 1.16-36)
LO 16-10: Apply the fair value option for liabilities (pg. 1.16-37)
Demo 16-10: Fair Value Option Accounting for Liabilities (pg. 1.16-38)
Review 16-10: Accounting for Debt Using the Fair Value Option (pg. 1.16-39)
LO 16-11: Describe financing disclosures and analyses using leverage ratios (pg. 1.16-39)
Debt Disclosures with Financial Statements (pg. 1.16-39)
Demo 16-11A: Disclosure of Five-Year Debt Maturities (pg. 1.16-40)
Financial Leverage Ratios (pg. 1.16-41)
Demo 16-11B: Calculating Financial Leverage Ratios (pg. 1.16-42)
Review 16-11: Calculating Financial Leverage Ratios (pg. 1.16-42)
Management Judgment (pg. 1.16-42)
APPENDIX 16A: Account for debt restructuring (pg. 1.16-43)
Troubled Debt Restructure-Debtor (pg. 1.16-43)
Demo 16-12A: Debt Restructuring and Debt Settlement—DEBTOR Perspective (pg. 1.16-44)
Troubled Debt Restructure-Creditor (pg. 1.16-47)
Demo 16-12B: Debt Restructuring and Debt Settlement—CREDITOR Perspective (pg. 1.16-48)
Review 16-12: Debtor’s Accounting for Debt Settlement and Debt Restructuring (pg. 1.16-49)
Questions (pg. 1.16-49)
Data Analytics (pg. 1.16-50)
Data Visualization (pg. 1.16-51)
Brief Exercises (pg. 1.16-51)
Exercises (pg. 1.16-54)
Problems (pg. 1.16-60)
Accounting Decisions and Judgments (pg. 1.16-66)
Appendix-Questions (pg. 1.16-71)
Appendix-Brief Exercises (pg. 1.16-71)
Appendix-Problems (pg. 1.16-72)
Answers to Review Exercises (pg. 1.16-72)
Chapter 17: Accounting for Leases (pg. 1.17-1)
LO 17-1: Identify a lease, determine lease types for lessee, and classify leases using lease criteri (pg. 1.17-3)
Determining Whether a Contract Contains a Lease (pg. 1.17-3)
Lease Classification Criteria (pg. 1.17-5)
Lease Classification (pg. 1.17-7)
Demo 17-1: Analysis of Lease Classification Criteria (pg. 1.17-7)
Review 17-1: Determine Lease Classification (pg. 1.17-8)
LO 17-2: Account for a basic finance lease for a lessee (pg. 1.17-9)
Overview (pg. 1.17-9)
Lease Liability (pg. 1.17-9)
Right-of-Use-Asset (pg. 1.17-9)
Demo 17-2: Lessee—Basic Finance Lease (pg. 1.17-10)
Review 17-2: Accounting for a Basic Finance Lease by a Lessee (pg. 1.17-13)
LO 17-3: Account for a basic operating lease for a lessee (pg. 1.17-13)
Straight-Line Lease Expense (pg. 1.17-13)
Demo 17-3: Lessee—Basic Operating Lease (pg. 1.17-14)
Review 17-3: Accounting for a Basic Operating Lease by a Lessee (pg. 1.17-17)
LO 17-4: Account for complex finance leases for a lessee (pg. 1.17-17)
Lease Classification Criterion No. 4 Revisited (pg. 1.17-17)
Accounting for a Complex Finance Lease (pg. 1.17-19)
Demo 17-4A: Lessee—Finance Lease with Initial Direct Cost, Lease Incentive (pg. 1.17-21)
Demo 17-4B: Lessee—Finance Lease with Guaranteed Residual Value (pg. 1.17-25)
Demo 17-4C: Lessee—Finance Lease with Purchase Option Expected to Exercise (pg. 1.17-28)
Review 17-4: Finance Lease by Lessee with a Guaranteed Residual Value (pg. 1.17-29)
LO 17-5: Account for Complex Operating Leases for a Lessee (pg. 1.17-30)
Demo 17-5: Lessee—Operating Lease with Initial Direct Cost, Incentive, Prepayment (pg. 1.17-30)
Income Statement Presentation-Operating Lease versus Finance Lease (pg. 1.17-34)
Review 17-5: Operating Lease by Lessee with Renewal Option and Initial Direct Costs (pg. 1.17-35)
LO 17-6: Determine lease type and account for a basic sales-type lease for a lessor (pg. 1.17-35)
Lessor Accounting (pg. 1.17-35)
Lessor Lease Classification (pg. 1.17-35)
Accounting for a Basic Sales-Type Lease (pg. 1.17-36)
Demo 17-6: Lessor—Basic Sales-Type Lease (pg. 1.17-36)
Review 17-6: Accounting for a Basic Sales-Type Lease for a Lessor (pg. 1.17-39)
LO 17-7: Account for an operating lease for a lessor (pg. 1.17-40)
Lessor: Operating Lease (pg. 1.17-40)
Demo 17-7: Lessor—Operating Lease with Initial Direct Cost (pg. 1.17-40)
Review 17-7: Operating Lease by Lessor with Initial Direct Costs (pg. 1.17-43)
LO 17-8: Account for complex sales-type leases for a lessor (pg. 1.17-43)
Lessor: Sales-Type Lease (pg. 1.17-43)
Calculation of Lease Payment (pg. 1.17-43)
Initial Direct Costs (pg. 1.17-43)
Demo 17-8A: Lessor—Sales-Type Lease with Initial Direct Costs (pg. 1.17-44)
Demo 17-8B: Lessor—Sales-Type Lease with a Guaranteed Residual Value (pg. 1.17-44)
Review 17-8: Sales-Type Lease by Lessor with a Guaranteed Residual Value (pg. 1.17-48)
LO 17-9: Explain the accounting policy election for short-term leases and other lease disclosures (pg. 1.17-48)
Short-Term Leases (pg. 1.17-48)
Demo 17-9: Short-Term Leases (pg. 1.17-49)
Financial Statement Reporting of Leases (pg. 1.17-49)
Review 17-9: Accounting for a Short-Term Lease (pg. 1.17-51)
Management Judgment (pg. 1.17-51)
Identifying a Lease (pg. 1.17-51)
Classifying a Lease (pg. 1.17-51)
Accounting for a Lease (pg. 1.17-51)
APPENDIX 17A: Account for direct financing leases by the lessor (pg. 1.17-52)
Demo 17-10: Lessor—Direct Financing Lease (pg. 1.17-53)
Review 17-10: Accounting for Direct Financing Leases (pg. 1.17-55)
APPENDIX 17B: Explain lease modifications and lease remeasurements (pg. 1.17-55)
Lease Modifications (pg. 1.17-55)
Additional Cases of Lease Classification Reassessment and Lease Remeasurement (pg. 1.17-56)
Demo 17-11: Lease Modifications and Lease Remeasurements (pg. 1.17-57)
Review 17-11: Lease Modifications and Lease Remeasurements (pg. 1.17-58)
APPENDIX 17C: Explain the accounting for transfers of investments (pg. 1.17-58)
Demo 17-12: Sale-Leaseback and Failed Sale (pg. 1.17-59)
Review 17-12: Accounting for Sale-Leaseback (pg. 1.17-61)
Questions (pg. 1.17-61)
Data Analytics (pg. 1.17-62)
Data Visualization (pg. 1.17-63)
Brief Exercises (pg. 1.17-63)
Exercises (pg. 1.17-68)
Problems (pg. 1.17-76)
Accounting Decisions and Judgments (pg. 1.17-81)
Appendices-Brief Exercises (pg. 1.17-84)
Appendices-Exercises (pg. 1.17-85)
Appendices-Problem (pg. 1.17-86)
Answers to Review Exercises (pg. 1.17-87)
Chapter 18: Income Taxes (pg. 1.18-1)
Expanded Chapter Preview (pg. 1.18-3)
LO 18-1: Describe taxable temporary differences that lead to deferred tax liabilities and related in (pg. 1.18-4)
Demo 18-1: Taxable Temporary Difference Leading to Deferred Tax Liability (pg. 1.18-6)
Review 18-1: Taxable Temporary Difference Leading to Deferred Tax Liability (pg. 1.18-8)
LO 18-2: Describe deductible temporary differences that lead to deferred tax assets and related inco (pg. 1.18-8)
Demo 18-2: Deductible Temporary Differences Leading to a Deferred Tax Asset (pg. 1.18-10)
Review 18-2: Deductible Temporary Difference Leading to Deferred Tax Asset (pg. 1.18-12)
LO 18-3: Explain how to record and report a valuation allowance for deferred tax assets (pg. 1.18-12)
Demo 18-3: Account for Deferred Tax Asset Valuation Allowance (pg. 1.18-14)
Review 18-3: Tax Asset Valuation Allowance (pg. 1.18-15)
LO 18-4: Describe permanent differences and other items that impact the reported effective tax rate (pg. 1.18-15)
Other Items that Impact Effective Tax Rate (pg. 1.18-16)
Demo 18-4A: Permanent Difference (pg. 1.18-16)
Demo 18-4B: Multiple Temporary and Permanent Differences (pg. 1.18-17)
Review 18-4: Multiple Temporary and Permanent Differences (pg. 1.18-21)
LO 18-5: Explain how a change in tax rates impacts deferred taxes (pg. 1.18-21)
Demo 18-5: Change in Enacted Tax Rate (pg. 1.18-22)
Review 18-5: Change in Enacted Tax Rate (pg. 1.18-24)
LO 18-6: Describe accounting for net operating loss carryforwards and loss carryback|carryforwards (pg. 1.18-24)
Net Operating Loss Carryforwards (pg. 1.18-25)
Net Operating Loss Carryback|Carryforward (pg. 1.18-25)
Demo 18-6A: Net Operating Loss Carryforward (pg. 1.18-25)
Demo 18-6B: NOL Carryback|Carryforward (pg. 1.18-26)
Review 18-6: Net Operating Loss Carryforward (pg. 1.18-28)
LO 18-7: Explain and demonstrate accounting for uncertainty in income tax decisions (pg. 1.18-29)
Step One: Recognition (pg. 1.18-29)
Demo 18-7: Uncertain Tax Positions (pg. 1.18-30)
Review 18-7: Unrecognized Tax Benefit (pg. 1.18-32)
LO 18-8: Describe financial statement disclosure for deferred taxes and income tax expense (pg. 1.18-32)
Financial Statement Presentation (pg. 1.18-32)
Disclosure Requirements for Income Tax (pg. 1.18-34)
Demo 18-8: Balance Sheet Classification of Deferred Tax Assets and Liabilities (pg. 1.18-34)
Review 18-8: Financial Statement Presentation of Deferred Taxes (pg. 1.18-35)
Management Judgment (pg. 1.18-35)
Deferred Tax Asset Valuation Allowance (pg. 1.18-35)
Uncertain Tax Position (pg. 1.18-35)
APPENDIX 18A: Apply intraperiod tax allocation (pg. 1.18-36)
Demo 18-9: Intraperiod Tax Allocation (pg. 1.18-36)
Review 18-9: Intraperiod Tax Allocation (pg. 1.18-37)
APPENDIX 18B: Apply tax effects to changes in accounting principle and error corrections (pg. 1.18-37)
Change in Accounting Principle (pg. 1.18-37)
Demo 18-10A: Change in Accounting Principle (pg. 1.18-37)
Error Correction (pg. 1.18-38)
Demo 18-10B: Error Correction (pg. 1.18-38)
Review 18-10: Change in Accounting Principle and Error Correction (pg. 1.18-38)
Questions (pg. 1.18-39)
Data Analytics (pg. 1.18-39)
Data Visualization (pg. 1.18-40)
Brief Exercises (pg. 1.18-40)
Exercises (pg. 1.18-43)
Problems (pg. 1.18-52)
Accounting Decisions and Judgments (pg. 1.18-56)
Appendices-Brief Exercises (pg. 1.18-60)
Appendices-Problems (pg. 1.18-61)
Answers to Review Exercises (pg. 1.18-62)
Chapter 19: Pensions and Postretirement Benefits (pg. 1.19-1)
Expanded Chapter Preview (pg. 1.19-3)
LO 19-1: Describe defined benefit plans and the measurement of related pension obligations (pg. 1.19-4)
Defined Benefit Plan (pg. 1.19-4)
Demo 19-1: Estimating Pension Obligations (pg. 1.19-6)
Review 19-1: Obligations under Defined Benefit Pension Plans (pg. 1.19-7)
LO 19-2: Determine the five components of change in projected benefit obligation (pg. 1.19-7)
Component Changes in the Projected Benefit Obligation (pg. 1.19-7)
Demo 19-2: Recognizing Changes in the Projected Benefit Obligation (pg. 1.19-9)
Review 19-2: Determine Changes in the Components of PBO (pg. 1.19-9)
LO 19-3: Reconcile pension plan assets and determine funded status (pg. 1.19-10)
Reconciliation of Plan Assets (pg. 1.19-10)
Demo 19-3A: Reconcile Pension Plan Assets (pg. 1.19-10)
Financial Statement Reporting of Funded Status (pg. 1.19-11)
Demo 19-3B: Determination of Funded Status (pg. 1.19-11)
Review 19-3: Reconciliation of Plan Assets and Determination of Funded Status (pg. 1.19-13)
LO 19-4: Determine the five components of pension expense (pg. 1.19-13)
Service Cost (pg. 1.19-13)
Interest Cost (pg. 1.19-13)
Expected Return on Plan Assets (pg. 1.19-14)
Amortization of Prior Service Cost (pg. 1.19-14)
Amortization of Pension Gain/Loss (pg. 1.19-14)
Demo 19-4: Components of Pension Expense (pg. 1.19-16)
Review 19-4: Components of Pension Expense (pg. 1.19-17)
LO 19-5: Record prior service cost amendment, pension expense, gains and losses, funding, and benefi (pg. 1.19-18)
Recording Prior Service Cost Amendment (pg. 1.19-18)
Recording Pension Expense (pg. 1.19-18)
Recording Deferral of Pension Gains and Losses (pg. 1.19-18)
Recording Employer Contributions (pg. 1.19-18)
Recording Benefits Paid (pg. 1.19-18)
Demo 19-5: Recording the Impact of Defined Benefit Plan (pg. 1.19-19)
Review 19-5: Recording the Impact of a Defined Benefit Plan (pg. 1.19-21)
LO 19-6: Describe the reporting of pensions in financial statements (pg. 1.19-21)
Income Statement (pg. 1.19-21)
Statement of Comprehensive Income and Statement of Stockholders’ Equity (pg. 1.19-21)
Balance Sheet (pg. 1.19-22)
Demo 19-6: Pension Plan Reporting (pg. 1.19-22)
Disclosure Requirements (pg. 1.19-23)
Management Judgment (pg. 1.19-24)
Review 19-6: Reporting a Defined Benefit Pension Plan (pg. 1.19-24)
LO 19-7: Use a pension worksheet to record pension journal entries (pg. 1.19-25)
Demo 19-7: Preparation of a Pension Worksheet (pg. 1.19-25)
Review 19-7: Record Pension Entries Using a Pension Worksheet (pg. 1.19-26)
APPENDIX 19A: Explain postretirement benefit plans and differences from pensions plans (pg. 1.19-27)
Disclosure (pg. 1.19-28)
Demo 19-8: Determining Obligations for Postretirement Benefit Plan (pg. 1.19-28)
Review 19-8: Determining Obligations for Postretirement Benefit Plan (pg. 1.19-29)
APPENDIX 19B: Record postretirement benefit expense, gains and losses, funding, and benefits paid (pg. 1.19-30)
Demo 19-9: Recording Entries for Postretirement Benefit Plan (pg. 1.19-30)
Review 19-9: Recording Entries for Postretirement Benefit Plan (pg. 1.19-32)
APPENDIX 19C: Allocate prior service cost using the service method (pg. 1.19-33)
Demo 19-10: Allocation of Prior Service Cost (pg. 1.19-33)
Review 19-10: Allocation of Prior Service Costs (pg. 1.19-34)
Questions (pg. 1.19-34)
Data Analytics (pg. 1.19-34)
Data Visualization (pg. 1.19-35)
Brief Exercises (pg. 1.19-35)
Exercises (pg. 1.19-37)
Problems (pg. 1.19-46)
Accounting Decisions and Judgments (pg. 1.19-50)
Appendices-Brief Exercises (pg. 1.19-56)
Appendices-Exercises (pg. 1.19-58)
Appendices-Problems (pg. 1.19-58)
Answers to Review Exercises (pg. 1.19-60)
Chapter 20: Stockholders’ Equity (pg. 1.20-1)
LO 20-1: Describe and report key components of stockholders’ equity (pg. 1.20-3)
Key Components of Stockholders’ Equity (pg. 1.20-3)
Demo 20-1: Key Components of Stockholders’ Equity (pg. 1.20-6)
Review 20-1: Components of Stockholders’ Equity (pg. 1.20-6)
LO 20-2: Account for common stock issuance, including par and no-par, cash and noncash, and issue co (pg. 1.20-8)
Par Value Common Stock (pg. 1.20-8)
Demo 20-2A: Par Value Stock Issuance (pg. 1.20-8)
No-Par and Stated Value Common Stock (pg. 1.20-9)
Demo 20-2B: No-Par Common Stock Issuance (pg. 1.20-9)
Common Stock Issued for Noncash Consideration (pg. 1.20-9)
Demo 20-2C: Common Stock Issuance for Noncash Consideration (pg. 1.20-10)
Multiple Securities Issuance (pg. 1.20-10)
Demo 20-2D: Multiple Securities Issuance (pg. 1.20-10)
Stock Issue Costs (pg. 1.20-11)
Demo 20-2E: Common Stock Issue Costs (pg. 1.20-11)
Review 20-2: Accounting for Common Stock Issuance (pg. 1.20-12)
LO 20-3: Account for reacquisition of common stock (pg. 1.20-12)
Treasury Stock (pg. 1.20-12)
Demo 20-3A: Reacquisition of Common Stock—Treasury Stock (pg. 1.20-13)
Direct Retirement of Stock (pg. 1.20-14)
Demo 20-3B: Reacquisition of Common Stock—Direct Retirement (pg. 1.20-15)
Review 20-3: Reacquisition of Common Stock (pg. 1.20-15)
LO 20-4: Describe and account for preferred stock (pg. 1.20-15)
Initial Recognition of Preferred Stock (pg. 1.20-16)
Subsequent Recognition of Preferred Stock (pg. 1.20-16)
Demo 20-4: Accounting for Preferred Stock (pg. 1.20-17)
Review 20-4: Accounting for Preferred Stock (pg. 1.20-18)
LO 20-5: Record dividend distributions, including cash, property, and liquidating (pg. 1.20-18)
Cash Dividends (pg. 1.20-19)
Demo 20-5A: Cash Dividend Distributions (pg. 1.20-19)
Property Dividends (pg. 1.20-21)
Demo 20-5B: Property Dividend Distributions (pg. 1.20-21)
Liquidating Dividends (pg. 1.20-21)
Demo 20-5C: Liquidating Dividend Distributions (pg. 1.20-22)
Review 20-5: Recording Dividend Distributions (pg. 1.20-22)
LO 20-6: Account for stock dividends and stock splits (pg. 1.20-23)
Stock Dividends (pg. 1.20-23)
Demo 20-6A: Accounting for Small Stock Dividends (pg. 1.20-24)
Demo 20-6B: Accounting for a Stock Split Effected in the Form of a Dividend (pg. 1.20-26)
Stock Splits (pg. 1.20-26)
Demo 20-6C: Accounting for Stock Splits (pg. 1.20-27)
Review 20-6: Account for Stock Dividends and Stock Splits (pg. 1.20-27)
LO 20-7: Describe comprehensive income, its components, and how it is reported (pg. 1.20-28)
Demo 20-7: Reporting of Comprehensive Income and Accumulated OCI (pg. 1.20-28)
Review 20-7: Comprehensive Income and Accumulated OCI (pg. 1.20-30)
LO 20-8: Explain stockholders’ equity disclosures and key ratios (pg. 1.20-30)
Equity Disclosures (pg. 1.20-30)
Equity Ratios (pg. 1.20-31)
Demo 20-8: Equity Ratios (pg. 1.20-31)
Review 20-8: Fundamental Qualitative Characteristics of Financial Reporting (pg. 1.20-32)
Management Judgment (pg. 1.20-33)
Questions (pg. 1.20-33)
Data Analytics (pg. 1.20-34)
Data Visualization (pg. 1.20-35)
Brief Exercises (pg. 1.20-35)
Exercises (pg. 1.20-38)
Problems (pg. 1.20-48)
Accounting Decisions and Judgments (pg. 1.20-51)
Answers to Review Exercises (pg. 1.20-61)
Chapter 21: Share-Based Compensation and Earnings per Share (pg. 1.21-1)
LO 21-1: Account for restricted stock plans (pg. 1.21-3)
Restricted Stock SHARE Awards (pg. 1.21-3)
Restricted Stock UNIT Awards (pg. 1.21-4)
Demo 21-1A: Accounting for Restricted Stock Shares (pg. 1.21-4)
Demo 21-1B: Accounting for Restricted Stock Units (pg. 1.21-5)
Review 21-1: Accounting for Restricted Stock Plans (pg. 1.21-7)
LO 21-2: Account for stock options (pg. 1.21-8)
Demo 21-2: Accounting for Stock Options (pg. 1.21-9)
Review 21-2: Accounting for Stock Options (pg. 1.21-12)
LO 21-3: Account for employee share purchase plans (pg. 1.21-12)
Demo 21-3: Accounting for Employee Share Purchase Plans (pg. 1.21-13)
Review 21-3: Accounting for Employee Share Purchase Plans (pg. 1.21-14)
LO 21-4: Compute earnings per share (EPS) with a simple capital structure (pg. 1.21-14)
Demo 21-4: Earnings per Share Calculation—Simple Capital Structure (pg. 1.21-14)
Review 21-4: Calculation of Basic EPS (pg. 1.21-15)
LO 21-5: Calculation of Basic EPS (pg. 1.21-15)
Preferred Stock Dividends (pg. 1.21-15)
Share Issuances and Buybacks (pg. 1.21-16)
Stock Dividends and Stock Splits (pg. 1.21-16)
Demo 21-5: EPS Calculations—Simple Capital Structure (pg. 1.21-16)
Review 21-5: Calculation of Basic EPS (pg. 1.21-19)
LO 21-6: Compute EPS using if-converted method for convertible securities (pg. 1.21-19)
Convertible Debt and Convertible Preferred Stock (pg. 1.21-19)
Demo 21-6A: EPS Calculations—Convertible Bonds (pg. 1.21-21)
Demo 21-6B: EPS Calculations—Convertible Preferred Stock (pg. 1.21-22)
Review 21-6: Calculation of EPS—Convertible Bonds and Convertible Preferred Stock (pg. 1.21-24)
LO 21-7: Compute EPS using treasury stock method for options, warrants, and restricted stock (pg. 1.21-24)
Stock Options and Warrants (pg. 1.21-24)
Demo 21-7A: EPS Calculations—Stock Options (pg. 1.21-25)
Demo 21-7B: EPS Calculations—Restricted Stock (pg. 1.21-27)
Review 21-7: EPS Calculations—Options and Restricted Stock (pg. 1.21-28)
LO 21-8: Compute EPS given contingently issuable shares (pg. 1.21-28)
Demo 21-8: Compute EPS Given Contingently Issuable Shares (pg. 1.21-29)
Review 21-8: Calculation of EPS Given Contingently Issuable Shares (pg. 1.21-29)
LO 21-9: Compute EPS given multiple securities and describe EPS financial statement presentation (pg. 1.21-30)
Demo 21-9: Compute EPS Given Multiple Securities (pg. 1.21-30)
Presentation and Disclosure of EPS (pg. 1.21-31)
Review 21-9: Calculation of EPS—Multiple Securities (pg. 1.21-33)
Management Judgment (pg. 1.21-33)
Share-Based Compensation (pg. 1.21-33)
EPS Calculations (pg. 1.21-34)
APPENDIX 21A: Describe accounting for stock appreciation rights (pg. 1.21-34)
Recording SARs as Equity (pg. 1.21-34)
Recording SARs as Liabilities (pg. 1.21-34)
Demo 21-10: Stock Appreciation Rights (pg. 1.21-35)
Review 21-10: Accounting for Stock Appreciation Rights (pg. 1.21-36)
Questions (pg. 1.21-37)
Data Analytics (pg. 1.21-38)
Data Visualization (pg. 1.21-38)
Brief Exercises (pg. 1.21-38)
Exercises (pg. 1.21-42)
Problems (pg. 1.21-48)
Accounting Decisions and Judgments (pg. 1.21-52)
Appendix-Brief Exercises (pg. 1.21-57)
Appendix-Exercises (pg. 1.21-57)
Appendix-Problems (pg. 1.21-58)
Answers to Review Exercises (pg. 1.21-58)
Chapter 22: Statement of Cash Flows Revisited (pg. 1.22-1)
LO 22-1: Identify operating, investing, and financing activities, and the statement of cash flows f (pg. 1.22-3)
Cash Flows from Operating Activities (pg. 1.22-3)
Cash Flows from Investing Activities (pg. 1.22-4)
Cash Flows from Financing Activities (pg. 1.22-5)
Format of Statement of Cash Flows (pg. 1.22-5)
Demo 22-1: Identify Operating, Investing, and Financing Activities (pg. 1.22-6)
Review 22-1: Identify Operating, Investing, and Financing Activities (pg. 1.22-6)
LO 22-2: Prepare the operating activities cash flow section of the statement of cash flows using th (pg. 1.22-7)
Operating Activities Cash Flow Section-Indirect Method (pg. 1.22-7)
Demo 22-2: Net Cash Flows from Operating Activities (pg. 1.22-9)
Other Items Affecting Cash Flows from Operating Activities (pg. 1.22-12)
Review 22-2: Prepare the Operating Activities Section (pg. 1.22-15)
LO 22-3: Prepare the investing activities section of the statement of cash flows (pg. 1.22-15)
Demo 22-3: Net Cash Flows from Investing Activities (pg. 1.22-16)
Other Items Affecting Cash Flows from Investing Activities (pg. 1.22-17)
Review 22-3: Prepare the Investing Activities Section (pg. 1.22-17)
LO 22-4: Prepare the financing activities section of the statement of cash flows (pg. 1.22-17)
Demo 22-4: Net Cash Flows from Financing Activities (pg. 1.22-18)
Other Financing Activities (pg. 1.22-20)
Review 22-4: Prepare the Financing Activities Section (pg. 1.22-22)
LO 22-5: Describe required disclosures including that for noncash transactions (pg. 1.22-22)
Cash Flow Reporting (pg. 1.22-22)
Noncash Transactions (pg. 1.22-24)
Management Judgment (pg. 1.22-24)
Classification of Cash Flows (pg. 1.22-24)
Transactions Affecting Cash Flow Presentation (pg. 1.22-24)
Demo 22-5: Disclosure of Noncash Transactions (pg. 1.22-24)
Review 22-5: Disclosure of Noncash Transactions (pg. 1.22-25)
LO 22-6: Utilize a worksheet to prepare the statement of cash flows (pg. 1.22-26)
Demo 22-6: Cash Flow Worksheet (pg. 1.22-26)
Review 22-6: Preparing Cash Flow Worksheet Entries (pg. 1.22-29)
LO 22-7: Prepare the operating cash flow section of the statement of cash flows using the direct met (pg. 1.22-29)
Demo 22-7: Cash Flows from Operating Activities under Direct Method (pg. 1.22-30)
Review 22-7: Cash Flows from Operating Activities Using the Direct Method (pg. 1.22-35)
APPENDIX 22A: Prepare a statement of cash flows using the cash T‑account approach (pg. 1.22-35)
Demo 22-8: Cash T‑Account Approach (pg. 1.22-36)
Review 22-8: Cash T‑Account Approach (pg. 1.22-38)
Questions (pg. 1.22-38)
Data Analytics (pg. 1.22-39)
Data Visualization (pg. 1.22-40)
Brief Exercises (pg. 1.22-40)
Exercises (pg. 1.22-44)
Problems (pg. 1.22-56)
Accounting Decisions and Judgments (pg. 1.22-65)
Appendix-Exercise (pg. 1.22-70)
Appendix-Problem (pg. 1.22-70)
Answers to Review Exercises (pg. 1.22-70)
Appendix A: Accounting Changes and Error Analysis Revisited (pg. 1.A-1)
Expanded Appendix Overview (pg. 1.A-3)
LO A-1: Demonstrate accounting for change in accounting estimate and change in accounting estimate e (pg. 1.A-4)
Prospective Treatment (pg. 1.A-4)
Change in Estimate Effected by Change in Principle (pg. 1.A-4)
Disclosure Requirements (pg. 1.A-5)
LO A-2: Demonstrate accounting for change in accounting principle (pg. 1.A-5)
Preferable or Required Change. (pg. 1.A-5)
Change in Accounting Principle-Retrospective Approach (pg. 1.A-6)
Change in Accounting Principle-Prospective Approach (pg. 1.A-6)
Change in Accounting Principle-Codification Update (pg. 1.A-7)
Direct Effects (pg. 1.A-7)
Indirect Effects (pg. 1.A-8)
Disclosure Requirements (pg. 1.A-8)
Management Judgment (pg. 1.A-9)
LO A-3: Demonstrate the accounting for an error correction (pg. 1.A-9)
Errors. (pg. 1.A-9)
Materiality. (pg. 1.A-10)
Restatement. (pg. 1.A-10)
Disclosure Requirements. (pg. 1.A-11)
LO A-4: Describe the accounting for a change in reporting entity (pg. 1.A-12)
Retrospective Approach. (pg. 1.A-12)
Disclosure Requirements (pg. 1.A-12)
Demo A-4: Identification of a Change in Reporting Entity (pg. 1.A-13)
Questions (pg. 1.A-13)
Brief Exercises (pg. 1.A-14)
Exercises (pg. 1.A-15)
Problems (pg. 1.A-16)
Accounting Decisions and Judgments (pg. 1.A-18)
Appendix B: IFRS (pg. 1.B-1)
Appendix C: Data Analytics and Blockchain Technology (pg. 1.C-1)
Data Analytics (pg. 1.C-2)
Big Data (pg. 1.C-2)
Types of Data Analytics (pg. 1.C-3)
Data Analytics in the Accounting Profession (pg. 1.C-3)
The Analytics Mindset (pg. 1.C-4)
Data Analytic Tools (pg. 1.C-6)
Data Visualization (pg. 1.C-6)
Blockchain Technology (pg. 1.C-10)
Summary (pg. 1.C-12)
Video Resources for Tableau (pg. 1.C-13)
Multiple Choice (pg. 1.C-13)
Exercises (pg. 1.C-14)
Problems (pg. 1.C-15)
Index (pg. 1.I-1)
Michelle L. Hanlon

Michelle L. Hanlon

Michelle L. Hanlon is the Howard W. Johnson Professor at the MIT Sloan School of Management. She earned her doctorate at the University of Washington.

Prior to joining MIT, she was a faculty member at the University of Michigan. Professor Hanlon has taught financial accounting to undergraduates, MBA students, executive MBA students, and Masters of Finance students. Professor Hanlon also teaches Taxes and Business Strategy to MBA students. She is the winner of the 2013 Jamieson Prize for Excellence in Teaching at MIT Sloan.

Professor Hanlon’s research focuses primarily on the intersection of taxation and financial accounting. Her recent work examines the capital market effects of the accounting for income tax, the reputational effects of corporate tax avoidance, and the economic consequences of U.S. international tax policies for multinational corporations. She has published research studies in the Journal of Accounting and Economics, the Journal of Accounting Research, The Accounting Review, the Review of Accounting Studies, the Journal of Finance, the Journal of Financial Economics, the Journal of Public Economics, and others. She has won several awards for her research and has presented her work at numerous universities and conferences. Professor Hanlon has served on several editorial boards and currently serves as an editor at the Journal of Accounting and Economics. 

Professor Hanlon has testified in front of the U.S. Senate Committee on Finance and the U.S. House of Representatives Committee on Ways and Means about the interaction of financial accounting and tax policy. She served as a U.S. delegate to the American-Swiss Young Leaders Conference in 2010 and worked as an Academic Fellow at the U.S. House Ways and Means Committee in 2015.


Intermediate Accounting, 3e (Hanlon, Hodder, Nelson, Roulstone, Dragoo)
Errata
Last Updated: Mar 7 2024

Identified errors in (complete) printed text and instructor edition, corrected.

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