NOT IN USE - Custom COMM 5130 (University of Virginia)

by Hopkins

ISBN: 0000000000 | Copyright 2023

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Advanced Accounting, 5e (pg. 1.2)
Chapter 1: Accounting for Intercorporate Investments (pg. 1.2)
Hulu (pg. 1.2)
When Should the Equity Method Be Used? (pg. 1.5)
Topic Review 1.1 (pg. 1.7)
Accounting Procedures for an Investment Using the Equity Method (Basics) (pg. 1.7)
Accounting for the Purchase of an Equity Investment (pg. 1.8)
Accounting for the Equity Investment Subsequent to Its Purchase (pg. 1.9)
Accounting for an Investment Using the Equity Method (Advanced Topics) (pg. 1.11)
Accounting for Equity Investments When the Purchase Price Exceeds Book Value (pg. 1.11)
Topic Review 1.3 (pg. 1.15)
Accounting for the Effects on Equity Investments of Intercompany Sales of Inventory (pg. 1.15)
Topic Review 1.4 (pg. 1.16)
Equity Method Accounting When Less Than 100% of the Investee Is Owned (pg. 1.17)
Topic Review 1.5 (pg. 1.19)
Discontinuation of the Equity Method (pg. 1.19)
Accounting for a Change to and from the Equity Method (pg. 1.20)
Chapter Summary (pg. 1.26)
Comprehensive Review (pg. 1.27)
Questions (pg. 1.27)
Multiple Choice (pg. 1.29)
CPA Exam Questions (pg. 1.33)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.33)
Exercises (pg. 1.33)
Problems (pg. 1.38)
CPA Simulations and Practice Exam (pg. 1.41)
Topic Review (pg. 1.41)
Comprehensive Review Solution (pg. 1.43)
Chapter 2: Introduction to Business Combinations and the Consolidation Process (pg. 1.46)
Coca-Cola (pg. 1.46)
Business Combinations and (Non-Business) Asset Acquisitions (pg. 1.49)
Review of (Non-Business) Asset Acquisition Accounting (pg. 1.51)
Types of Business Combinations (pg. 1.54)
Topic Review 2.1 (pg. 1.55)
When Does “Control” Exist? (pg. 1.56)
Topic Review 2.2 (pg. 1.57)
Consolidation on the Date of Acquisition (pg. 1.58)
The Intuition Underlying the Consolidation Process (pg. 1.58)
Acquisition-Date Consolidation (Purchase Price Equals Book Value) (pg. 1.62)
Acquisition-Date Consolidation (Purchase Price Greater Than Book Value) (pg. 1.64)
Topic Review 2.3 (pg. 1.70)
Recognizing and Measuring the Identifiable Assets Acquired and the Liabilities Assumed (pg. 1.70)
Recognition Principle (pg. 1.71)
Measurement Principle and Fair Value Estimation (pg. 1.71)
Topic Review 2.4 (pg. 1.79)
Topic Review 2.5 (pg. 1.80)
Disclosure Example: Disney’s Acquisition Of Twenty-First Century Fox (pg. 1.82)
Chapter Summary (pg. 1.85)
Comprehensive Review (pg. 1.86)
Appendix 2A: Measuring Assets Acquired and Liabilities Assumed (Advanced) (pg. 1.87)
Discontinued Operations-Assets Held for Sale (pg. 1.87)
Preacquisition Contingencies (pg. 1.88)
Topic Review 2.6 (pg. 1.88)
Appendix 2B: Deferred Taxes and Business Combinations (pg. 1.91)
Appendix 2C: Pushdown Accounting (pg. 1.95)
Questions (pg. 1.100)
Multiple Choice (pg. 1.102)
CPA Exam Questions (pg. 1.108)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.108)
Exercises (pg. 1.108)
Problems (pg. 1.114)
CPA Simulations and Practice Exam (pg. 1.120)
Topic Review (pg. 1.120)
Comprehensive Review Solution (pg. 1.123)
Chapter 3: Consolidated Financial Statements Subsequent to the Date of Acquisition (pg. 1.124)
Cummins Inc. (pg. 1.124)
Post-Acquisition Consolidation When the Parent Uses the Equity Method of Investment Bookkeeping (pg. 1.127)
Review of the Equity Method of Pre-Consolidation Bookkeeping (pg. 1.128)
Topic Review 3.1 (pg. 1.130)
The Consolidation Process Subsequent to the Date of Acquisition-Equity Method (pg. 1.131)
Example of Consolidation Subsequent to the Date of Acquisition-Equity Method (pg. 1.132)
Consolidated Financial Statements (pg. 1.138)
Topic Review 3.2 (pg. 1.141)
Post-Acquisition Consolidation When the Parent Uses the Cost Method of Investment Bookkeeping (pg. 1.141)
Cost Method of Pre-Consolidation Bookkeeping (pg. 1.142)
The Consolidation Process Subsequent to the Date of Acquisition-Cost Method (pg. 1.144)
Example of Consolidation Subsequent to the Date of Acquisition-Cost Method (pg. 1.146)
Accounting for Goodwill (pg. 1.149)
Recognition of Goodwill (pg. 1.150)
Amortization of Intangible Assets and Goodwill Impairment Evaluation (pg. 1.150)
Topic Review 3.4 (pg. 1.156)
Accounting for a Bargain Acquisition (pg. 1.157)
Chapter Summary (pg. 1.158)
Comprehensive Review-Equity Method (pg. 1.159)
Comprehensive Review-Cost Method (pg. 1.160)
Appendix 3A: Complete Listing of Required Disclosures (pg. 1.161)
Appendix 3B: Common Control Business Combinations and the Pooling-of-Interests Method (pg. 1.162)
Comparison of Pooling-of-Interests with Acquisition Method (pg. 1.164)
Questions (pg. 1.165)
Multiple Choice (pg. 1.167)
CPA Exam Questions (pg. 1.171)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.171)
Exercises (pg. 1.171)
Problems (pg. 1.177)
CPA Simulations and Practice Exam (pg. 1.190)
Topic Review (pg. 1.190)
Comprehensive Review-Equity Method Solution (pg. 1.192)
Comprehensive Review-Cost Method Solution (pg. 1.193)
Chapter 4: Consolidated Financial Statements and Intercompany Transactions (pg. 1.196)
Exxon Mobil Corporation (pg. 1.196)
Accounting for Intercompany Sales of Inventory-Equity Method (pg. 1.200)
Intuition Behind the Elimination of Intercompany Sales and Deferral of Profit-Equity Method (pg. 1.200)
Intercompany Inventory Transactions and Consolidating Entries-Equity Method (pg. 1.202)
Upstream versus Downstream Transactions for Wholly Owned (i.e., 100%) Subsidiaries-Equity Method (pg. 1.207)
How Much Gross Profit Do We Defer? (pg. 1.207)
Continuous Sales of Inventories (pg. 1.208)
Example of the Continuous Intercompany Sale and Resale of Inventories-Equity Method (pg. 1.208)
Topic Review 4.1 (pg. 1.210)
Accounting for Intercompany Sales of Inventory-Cost Method (pg. 1.211)
Example of the Continuous Intercompany Sale and Resale of Inventories-Cost Method (pg. 1.213)
Topic Review 4.2 (pg. 1.215)
Accounting for the Intercompany Sales of Noncurrent Assets Between the Investor and the Investee(s)- (pg. 1.216)
Accounting for the Intercompany Sale of Non-Depreciable Assets-Equity Method (pg. 1.216)
Accounting for the Intercompany Sale of Depreciable Assets-Equity Method (pg. 1.223)
Accounting for the Intercompany Sales of Noncurrent Assets Between the Investor and the Investee(s)- (pg. 1.233)
Accounting for the Intercompany Sale of Non-Depreciable Assets-Cost Method (pg. 1.233)
Accounting for the Intercompany Sale of Depreciable Assets-Cost Method (pg. 1.237)
Topic Review 4.4 (pg. 1.241)
Chapter Summary (pg. 1.242)
Comprehensive Review-Equity Method (pg. 1.243)
Comprehensive Review-Cost Method (pg. 1.244)
Appendix 4A: Consolidation When the Parent Uses the Partial Equity Method to Account for Its Equity (pg. 1.245)
Questions (pg. 1.247)
Multiple Choice (pg. 1.248)
CPA Exam Questions (pg. 1.252)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.252)
Exercises (pg. 1.253)
Problems (pg. 1.256)
CPA Simulations and Practice Exam (pg. 1.275)
Topic Review (pg. 1.275)
Comprehensive Review-Equity Method Solution (pg. 1.279)
Comprehensive Review-Cost Method Solution (pg. 1.283)
Chapter 5: Consolidated Financial Statements with Less Than 100% Ownership (pg. 1.286)
Alcoa Corporation (pg. 1.286)
Basics of Consolidating Noncontrolling Interests (pg. 1.289)
Consolidation on Date of Acquisition-Parent Owns 80% of the Subsidiary (pg. 1.289)
Post-Acquisition Consolidation And Noncontrolling Interests-Equity Method (pg. 1.293)
Allocation of Profit to Controlling and Noncontrolling Interests and Consolidation Subsequent to Acq (pg. 1.294)
Topic Review 5.2 (pg. 1.307)
Intercompany Profit Elimination for Upstream Depreciable Asset Sales-Equity Method (pg. 1.308)
Comparison of Upstream to Downstream Transfers of Depreciable Assets (pg. 1.313)
Topic Review 5.3 (pg. 1.317)
Post-Acquisition Consolidation and Noncontrolling Interests-Cost Method (pg. 1.318)
Suggested Integrated Approach for Mastering Complex Consolidations (pg. 1.323)
Step 1: Disaggregate and Document the Activity for the 100% AAP, the Controlling Interest AAP, and (pg. 1.324)
Step 2: Calculate and Organize the Profits and Losses on Intercompany Transactions and Balances (pg. 1.328)
Step 3: Compute the Pre-Consolidation Equity Investment Account Beginning and Ending Balances Start (pg. 1.330)
Step 4: Reconstruct the Activity in the Parent’s Pre-Consolidation Equity Investment T-Account for (pg. 1.331)
Step 5: Independently Compute the Beginning and Ending Balances of Owners’ Equity Attributable to t (pg. 1.332)
Step 6: Independently Calculate Consolidated Net Income, Controlling Interest Net Income, and Nonco (pg. 1.334)
Step 7: Complete the Consolidating Entries According to the C-E-A-D-I Sequence and Complete the Con (pg. 1.336)
Chapter Summary (pg. 1.338)
Comprehensive Review-Equity Method (pg. 1.339)
Comprehensive Review-Cost Method (pg. 1.340)
Appendix 5A: Business Combinations and Alternative Measurements of Noncontrolling Interest (pg. 1.342)
Measurement of Noncontrolling Interest in the United States Prior to SFAS 141(R) and ASC 805 (pg. 1.342)
Measurement of Noncontrolling Interest Under International Financial Reporting Standards (pg. 1.344)
Appendix 5B: Consolidated Earnings Per Share (EPS) (pg. 1.346)
Appendix 5C: Accounting for Changes in Ownership (pg. 1.347)
Accounting for an Acquisition Achieved in Stages (Step Acquisitions) (pg. 1.347)
Reductions of the Investor’s Ownership Interest in the Investee (pg. 1.350)
Topic Review 5.4 (pg. 1.353)
Required Disclosures (pg. 1.353)
Questions (pg. 1.354)
Multiple Choice (pg. 1.354)
CPA Exam Questions (pg. 1.358)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.358)
Exercises (pg. 1.358)
Problems (pg. 1.364)
CPA Simulations and Practice Exam (pg. 1.380)
Topic Review (pg. 1.381)
Comprehensive Review Solution-Equity Method (pg. 1.384)
Comprehensive Review Solution-Cost Method (pg. 1.390)
Chapter 6: Consolidation of Variable Interest Entities and Other Intercompany Investments (pg. 1.392)
The Walt Disney Company (pg. 1.392)
Parent Investment in Variable Interest Entities (VIEs) (pg. 1.395)
Special Purpose Entities (SPEs) (pg. 1.395)
Comprehensive Consolidation Model in FASB ASC 810, Including Consolidation of VIEs (pg. 1.397)
Topic Review 6.1 (pg. 1.403)
Topic Review 6.2 (pg. 1.403)
Topic Review 6.3 (pg. 1.404)
Topic Review 6.4 (pg. 1.405)
Intercompany Investment in Affiliates’ Debt (pg. 1.412)
Direct Lending to an Affiliate (pg. 1.412)
Acquisition from Unaffiliated Entity of Investment in Affiliated Company’s Debt-Equity Method (pg. 1.413)
Topic Review 6.5 (pg. 1.419)
Acquisition from Unaffiliated Entity of Investment in Affiliated Company’s Debt-Cost Method (pg. 1.419)
Topic Review 6.6 (pg. 1.420)
Parent Investment in a Subsidiary with Preferred Stock Outstanding (pg. 1.421)
Effects of Subsidiary Preferred Stock on [C] and [E] Consolidation Entries (pg. 1.421)
Chapter Summary (pg. 1.423)
Comprehensive Review-Equity Method (pg. 1.424)
Comprehensive Review-Cost Method (pg. 1.426)
Appendix 6A: Detail of Required Disclosures Related to VIEs (pg. 1.427)
Questions (pg. 1.428)
Multiple Choice (pg. 1.429)
CPA Exam Questions (pg. 1.432)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.432)
Exercises (pg. 1.432)
Problems (pg. 1.437)
CPA Simulations and Practice Exam (pg. 1.443)
Topic Review (pg. 1.443)
Comprehensive Review Solution-Equity Method (pg. 1.447)
Comprehensive Review Solution-Cost Method (pg. 1.455)
Chapter 7: Accounting for Foreign Currency Transactions and Derivatives (pg. 1.458)
Coca-Cola (pg. 1.458)
Effect of Exchange Rates on the Income Statement and the Balance Sheet (pg. 1.460)
Accounting for Foreign Currency Transactions Gains and Losses (pg. 1.461)
Accounting for Foreign-Currency-Denominated Accounts Payable (pg. 1.462)
Accounting for Foreign-Currency-Denominated Accounts Receivable (pg. 1.463)
Foreign Currency Transaction Gains and Losses-Summary (pg. 1.464)
Topic Review 7.1 (pg. 1.465)
Derivative Financial Instruments (pg. 1.466)
Hedging Instruments (pg. 1.466)
Accounting for Derivatives (pg. 1.467)
Derivatives-Accounting Hedging (pg. 1.468)
Fair Value Hedge (pg. 1.471)
Topic Review 7.2 (pg. 1.479)
Cash Flow Hedge (pg. 1.479)
Chapter Summary (pg. 1.487)
Comprehensive Review (pg. 1.490)
Appendix 7A: Borrowing in a Foreign Currency (pg. 1.490)
Appendix 7B: Assessing the Effectiveness of Hedging Instruments (pg. 1.491)
Appendix 7C: Required Disclosures Relating to Derivatives (pg. 1.492)
Appendix 7D: Derivative Financial Instruments (pg. 1.493)
Hedging Instruments (pg. 1.493)
Appendix 7E: Examples of (Non-Foreign Currency) Hedging Transactions (pg. 1.496)
Fair Value Hedge Example: Use of Futures Contracts to Hedge Zinc Inventory (pg. 1.496)
Cash Flow Hedge Example: Use of Options to Hedge an Anticipated Purchase of Inventory (pg. 1.497)
Accounting for a Fair Value Hedge Example: Firm Commitment to Purchase Nickel with a Forward Contrac (pg. 1.498)
Interest Rate Swap Example: Interest Rate Swap as a Hedge of a Fixed-Rate Instrument-Fair Value Hedg (pg. 1.499)
Questions (pg. 1.501)
Multiple Choice (pg. 1.501)
CPA Exam Questions (pg. 1.505)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.505)
Exercises (pg. 1.505)
Problems (pg. 1.517)
CPA Simulations And Practice Exam (pg. 1.522)
Topic Review (pg. 1.522)
Comprehensive Review Solution (pg. 1.524)
Chapter 8: Consolidation of Foreign Subsidiaries (pg. 1.526)
Starbucks Corporation (pg. 1.526)
Functional Currency (pg. 1.529)
The Translation Process (pg. 1.530)
Translation Example-Year of Acquisition (pg. 1.533)
Translation Example-Second Year after Acquisition (pg. 1.535)
Required Disclosures Relating to the Cumulative Translation Adjustment (pg. 1.539)
Topic Review 8.1 (pg. 1.540)
The Remeasurement of Foreign-Currency-Denominated Financial Statements (pg. 1.541)
Remeasurement Example (pg. 1.542)
Topic Review 8.2 (pg. 1.546)
Consolidation of Foreign Subsidiaries (pg. 1.548)
Example of Consolidation Subsequent to the Date of Acquisition-Equity Method (pg. 1.548)
Disposition of the Cumulative Translation Adjustment upon Sale of the Subsidiary (pg. 1.551)
Example of Consolidation Subsequent to the Date of Acquisition-Cost Method (pg. 1.552)
Chapter Summary (pg. 1.554)
Comprehensive Review (pg. 1.555)
Appendix 8A: Direct Computation of Translation Adjustment and Remeasurement Gain (Loss) (pg. 1.556)
Direct Computation of the Translation Adjustment (pg. 1.556)
Direct Computation of the Remeasurement Gain or Loss (pg. 1.557)
Appendix 8B: Hedging the Net Investment in a Foreign Subsidiary (pg. 1.558)
Example #1: Use of a Forward-Exchange Contract to Hedge a Net Investment in a Foreign Subsidiary (pg. 1.559)
Example #2: Use of a Non-Derivative to Hedge a Net Investment in a Foreign Subsidiary (pg. 1.560)
Questions (pg. 1.560)
Multiple Choice (pg. 1.561)
CPA Exam Questions (pg. 1.564)
Data Analytics, Data Visualization, and Excel Activities (pg. 1.565)
Exercises (pg. 1.565)
Problems (pg. 1.574)
CPA Simulations and Practice Exam (pg. 1.580)
Topic Review (pg. 1.580)
Comprehensive Review Solution (pg. 1.582)
Patrick E. Hopkins

Patrick E. Hopkins

Patrick E. Hopkins, is a professor and Deloitte Foundation Accounting Faculty Fellow at Indiana University’s Kelley School of Business. Professor Hopkins received his B.S. and M.Acc. from the University of Florida and his Ph.D. from the University of Texas at Austin.

Prior to entering the accounting doctoral program, Professor Hopkins served as a senior consultant with the Emerging Business Services practice of Deloitte, Haskins and Sells in Miami, Florida. Professor Hopkins has been at IU since 1995, where he teaches undergraduate and graduate courses on financial reporting for mergers, acquisitions and changes in corporate structure. He also served as a Visiting Professor at Stanford University’s Graduate School of Business, where he taught courses on global financial reporting and on accounting for mergers, acquisitions and changes in corporate structure. During his career, Professor Hopkins won each of the top teaching awards in the Kelley School of Business, including the Trustees Teaching Award, the Schuyler F. Otteson Award, and the Sauvain Award. He also teaches in international and online executive MBA programs at Indiana University, and in the doctoral program at HHL University in Leipzig, Germany. Professor Hopkins is also a widely respected research scholar in the area of financial reporting, and investor and analyst judgment and decision making. His work has appeared in top accounting journals, including The Accounting Review, the Journal of Accounting Research, Contemporary Accounting Research, and Accounting Organizations and Society, and has been discussed in business press publications, including Barron’s, CFO, and The Deal. He is the past winner of the American Accounting Association’s Financial Accounting and Reporting Section Best Research Paper Award, the Indiana University Outstanding Junior Faculty Award, and Kelley School of Business Outstanding Research Award.


Advanced Accounting, 5e (Hopkins, Halsey)
Errata
Last Updated: Dec 11 2023

Here are corrections to the text identified after the book's printing.

Errata
Last Updated: Dec 11 2023

Here are corrections to the text identified after the book's printing.

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