现代高级会计 英文版 第7版PDF电子书下载

Chapter 1 1

Ethical Issues in Advanced AccountingEthical Standards for Preparers of Financial Statements and Financial Reports 1

Significant Events in the Establishment of Ethical Standards for ManagementAccountants and Financial Executives 2

Part 2

Analysis of Ethical Standards for Management Accountants and FinancialExecutives 4

Concluding Observations 6

Appendix 1:Standards of Ethical Conduct for Management Accountants 7

Competence 8

Confidentiality 8

Integrity 8

Resolution of Ethical Conflict 9

Objectivity 9

Appendix 2:FEI Code of Ethics 10

Appendix 3:AICPA Code of Professional Conduct 10

Composition,Applicability,and Compliance 10

Other Guidance 11

Section Ⅰ:Principles 11

Section Ⅱ:Rules 15

Definitions 15

Rules 16

Appendix A:Council Resolution Designating Bodies to Promulgate TechnicalStandards 20

ContentsPreface 21

Appendix B:Council Resolution Concerning Form of Organization andName 21

Review Questions 22

Exercise 23

Cases 25

Part 1 Accounting for Partnerships and Branches 28

Chapter 2 31

Partnerships:Organization and OperationScope of Chapter 31

Organization of a General Partnership 31

Characteristics of a General Partnership 31

Deciding Between a General Partnership and a Corporation 32

Is the General Partnership a Separate Entity? 33

The Partnership Contract 33

Ledger Accounts for Partners 34

Loans to and from Partners 35

Valuation of Investments by Partners 35

Division of Net Income or Loss 36

Partners Equity in Assets versus Share in Earnings 36

Income-Sharing Plans for General Partnerships 36

Financial Statements for a General Partnership 44

Changes in Ownership of General Partnerships 47

Accounting for Changes in Partners 47

Correction of Partnership Net Income of Prior Years 47

Accounting and Managerial Issues 48

Admission of a New Partner 48

Acquisition of an Interest by Payment to One or More Partners 49

Bonus or Goodwill Allowed to Existing Partners 50

Investment in Partnership by New Partner 50

Bonus or Goodwill Allowed to New Partner 52

Retirement of a Partner 54

Limited Liability Partnerships 56

Limited Partnerships 56

Accounting for Limited Partnerships 57

Financial Statements for Limited Partnerships 57

SEC Enforcement Actions Dealing with Wrongful Application of AccountingStandards for Partnerships 59

Review Questions 60

Exercises 62

Cases 70

Problems 73

Chapter 3 83

Partnership Liquidation and Incorporation;Joint VenturesScope of Chapter 83

Liquidation of a Partnership 83

The Meaning of Liquidation 83

Division of Losses and Gains during Liquidation 84

Distribution of Cash or Other Assets to Partners 84

Payments to Partners after All Noncash Assets Realized 85

Equity of Each Partner Is Sufficient to Absorb Loss from Realization 85

Equity of One Partner Is Not Sufficient to Absorb That Partner S Share of Lossfrom Realization 87

Equities of Two Partners Are Not Sufficient to Absorb Their Shares of Lossfrom Realization 89

Partnership Is Insolvent but Partners Are Solvent 91

Partnership Is Insolvent and Partners Are Insolvent 92

Installment Payments to Partners 95

General Principles Guiding Installment Payments 96

Determining Appropriate Installment Payments to Partners 96

Preparation of a Cash Distribution Program 98

Withholding of Cash for Liabilities and Liquidation Costs 103

Liquidation of Limited Liability Partnerships 103

Liquidation of Limited Partnerships 104

Incorporation of a General Partnership 104

Joint Ventures 108

Present-Day Joint Ventures 108

Accounting for an Unincorporated Joint Venture 109

Accounting for a Corporate Joint Venture 109

SEC Enforcement Actions Dealing with Wrongful Application of AccountingStandards for Joint Ventures 112

Review Questions 113

Exercises 115

Cases 123

Problems 127

Chapter 4 135

Branches and Divisions 135

Accounting for Branches;Combined Financial StatementsScope of Chapter 135

Start-Up Costs of Opening New Branches 136

Accounting System for a Branch 136

Reciprocal Ledger Accounts 136

Alternative Methods of Billing Merchandise Shipments to Branches 137

Expenses Incurred by Home Office and Allocated to Branches 137

Separate Financial Statements for Branch and for Home Office 138

Combined Financial Statements for Home Office and Branch 139

Working Paper for Combined Financial Statements 141

Billing of Merchandise to Branches at Prices above Home Office Cost 144

Working Paper when Billings to Branches Are at Prices above Cost 146

Treatment of Beginning Inventories Priced above Cost 149

Reconciliation of Reciprocal Ledger Accounts 152

Transactions Between Branches 156

SEC Enforcement Action Dealing with Wrongful Application of AccountingStandards for Divisions 158

Review Questions 158

Exercises 159

Cases 166

problems 170

Business Combinations and ConsolidatedFinancial Statements 180

Chapter 5 183

Business CombinationsScope of Chapter 184

Business Combinations:Why and How? 184

Antitrust Considerations 184

Methods for Arranging Business Combinations 185

Establishing the Price for a Business Combination 186

Methods of Accounting for Business Combinations 187

Purchase Accounting 187

Determination of the Combinor 188

Computation of Cost of a Combinee 188

Allocation of Cost of a Combinee 189

Illustration of Purchase Accounting for Statutory Merger,with Goodwill 191

Illustration of Purchase Accounting for Acquisition of Net Assets,withBargain Purchase Excess 193

Pooling-of-Interests Accounting 196

Illustration of Pooling-of-Interests Accounting for Statutory Merger 196

Popularity of Pooling Accounting 197

Past Abuses of Pooling Accounting 200

Past Abuses of Purchase Accounting 201

Action by the AICPA 202

Conditions Requiring Pooling Accounting 202

Financial Statements Following a Business Combination 205

Disclosure of Business Combinations in a Note to the Financial Statements 207

Comparison of Purchase and Pooling Accounting 210

Other Topics in Accounting for Business Combinations 210

Criticism of Purchase Accounting 214

Appraisal of Accounting Standards for Business Combinations 214

Criticism of Pooling Accounting 215

FASB Study of Accounting for Business Combinations 216

SEC Enforcement Actions Dealing with Wrongful Application of AccountingStandards for Business Combinations 216

Review Questions 218

Exercises 219

Cases 229

Problems 233

Chapter 6 245

Consolidated Financial Statements:On Date ofPurchase-Type Business CombinationScope of Chapter 245

Parent Company-Subsidiary Relationships 245

Nature of Consolidated Financial Statements 246

Should All Subsidiaries Be Consolidated? 246

FASB s Proposed Redefinition of Control 247

The Meaning of Controlling Interest 247

Criticism of Traditional Concept of Control 247

Consolidation of Wholly Owned Subsidiary on Date of Purchase-TypeBusiness Combination 248

Consolidation of Partially Owned Subsidiary on Date of Purchase-TypeBusiness Combination 259

Nature of Minority Interest 265

Consolidated Balance Sheet for Partially Owned Subsidiary 267

Alternative Methods for Valuing Minority Interest and Goodwill 268

Bargain Purchase Excess in Consolidated Balance Sheet 269

Disclosure of Consolidation Policy 271

Advantages and Shortcomings of Consolidated Financial Statements 272

Push-Down Accounting for a Purchased Subsidiary 272

SEC Enforcement Actions Dealing with Wrongful Application of AccountingStandards for Consolidated Financial Statements 274

Review Questions 275

Exercises 276

Cases 287

Problems 290

Chapter 7 303

Consolidated Financial Statements:Subsequent to Date ofPurchase-Type Business CombinationScope of Chapter 303

Accounting for Operating Results of Wholly Owned Purchased Subsidiaries 303

Equity Method 304

Cost Method 304

Choosing Between Equity Method and Cost Method 304

Illustration of Equity Method for Wholly Owned Purchased Subsidiary for FirstYear after Business Combination 305

Illustration of Equity Method for Wholly Owned Purchased Subsidiary forSecond Year after Business Combination 316

Accounting for Operating Results of Partially Owned Purchased Subsidiaries 320

Illustration of Equity Method for Partially Owned Purchased Subsidiary for FirstYear after Business Combination 320

Illustration of Equity Method for Partially Owned Purchased Subsidiary forSecond Year after Business Combination 332

Concluding Comments on Equity Method of Accounting 337

Appendix:Cost Method for Partially Owned Purchased Subsidiary 337

Illustration of Cost Method for Partially Owned Purchased Subsidiary for FirstYear after Business Combination 338

Illustration of Cost Method for Partially Owned Purchased Subsidiary forSecond Year after Business Combination 344

Review Questions 344

Exercises 345

Cases 356

Problems 358

Chapter 8 371

Consolidated Financial Statements:Pooling-Type BusinessCombinationScope of Chapter 371

Consolidation of Wholly Owned Pooled Subsidiary on Date of BusinessCombination 372

Consolidation of Wholly Owned Pooled Subsidiary Subsequent to Date of BusinessCombination 381

The Equity Method of Accounting for Pooled Subsidiaries 381

Consolidation of Partially Owned Pooled Subsidiary on Date of BusinessCombination 388

Consolidation of Partially Owned Pooled Subsidiary Subsequent to Date of BusinessCombination 395

Accounting for Intercompany Transactions Not Involving Profit(Gain)or Loss 401

Loan on Notes or Open Account 402

Leases of Property under Operating Leases 404

Rendering of Services 405

Income Taxes Applicable to Intercompany Transactions 405

Summary:Intercompany Transactions and Balances 405

Review Questions 405

Exercises 407

Cases 417

Problems 418

Chapter 9 427

Consolidated Financial Statements:Intercompany Profits(Gains)and LossesScope of Chapter 427

Unrealized Intercompany Profit in Ending Inventories 428

Intercompany Profit in Beginning and Ending Inventories 428

Importance of Eliminating or Including Intercompany Profits(Gains)Intercompany Sales of Merchandise 428

Intercompany Sales of Merchandise at Cost 428

Intercompany Profit in Inventories and Amount of Minority Interest 433

Should Net Profit or Gross Profit Be Eliminated? 434

Intercompany Sales of Plant Assets 435

Intercompany Gain on Sale of Land 435

Intercompany Gain on Sale of Depreciable Plant Asset 437

Intercompany Lease of Property under Capital/Sales-Type Lease 441

Intercompany Sales of Intangible Assets 446

Acquisition of Affiliate s Bonds 447

Illustration of Acquisition of Affiliate s Bonds 448

Accounting for Gain in Subsequent Years 450

Illustration of Effect of Intercompany Profits(Gains)onMinority Interest 455

Reissuance of Intercompany Bonds 455

Comprehensive Illustration of Working Paper for Consolidated FinancialStatements 458

Review Questions 466

Exercises 467

Cases 473

Problems 475

Chapter 10 483

Consolidated Financial Statements:Income Taxes,CashFlows,and Installment AcquisitionsScope of Chapter 483

Income Taxes in Business Combinations and Consolidations 483

Income Taxes Attributable to Current Fair Values of Purchased IdentifiableNet Assets 483

Income Taxes Attributable to Undistributed Earnings of Subsidiaries 486

Income Taxes Attributable to Intercompany Profits(Gains) 486

Consolidated Statement of Cash Flows 495

Illustration of Consolidated Statement of Cash Flows 496

Installment Acquisition of Subsidiary 500

Illustration of Installment Acquisition of Parent Company sControlling Interest 500

Parent Company s Journal Entries for Installment Acquisition 501

Working Paper for Consolidated Financial Statements 504

Review Questions 506

Exercises 507

Cases 516

Problems 517

Chapter 11 531

Consolidated Financial Statements:Special ProblemsScope of Chapter 531

Changes in Parent Company s Ownership Interest in a Subsidiary 531

Parent Company Acquisition of Minority Interest 531

Parent Company Sale of a Portion of Its Subsidiary CommonStockholdings 534

Subsidiary s Issuance of Additional Shares of Common Stock to thePublic 538

Subsidiary s Issuance of Additional Shares of Common Stock toParent Company 541

Subsidiary with Preferred Stock Outstanding 543

Illustration of Minority Interest in Subsidiary with Preferred Stock 543

Preferred Stock Considerations Subsequent to Date of Business Combination 545

Stock Dividends Distributed by a Subsidiary 548

Illustration of Subsidiary Stock Dividend 549

Treasury Stock Transactions of a Subsidiary 550

Illustration of Treasury Stock Owned by Subsidiary on Date of BusinessCombination 550

Illustration of Treasury Stock Acquired by Subsidiary Subsequent toBusiness Combination 551

Indirect Sharehoidings and Parent Company s Common Stock Owned by aSubsidiary 554

Indirect Shareholdings 554

Parent Company s Common Stock Owned by a Subsidiary 557

Review Questions 562

Concluding Comments on Special Problems 562

Exercises 563

Cases 569

Problems 570

Part 3 Accounting for Nonbusiness Organizations 584

Chapter 12 587

Governmental Entities:General FundScope of Chapter 587

Objectives of Financial Reporting for Nonbusiness Organizations 587

Nature of Governmental Entities 589

Accounting Standards for Governmental Entities 591

The Governmental Financial Reporting Entity 591

Funds:The Accounting Unit for Governmental Entities 591

The Accrual Basis of Accounting 593

Recording the Budget 594

Accounting for a Governmental Entity s General Fund 599

Illustration of Accounting for a General Fund 599

Trial Balance at End of Fiscal Year for a General Fund 604

Financial Statements for a General Fund 605

Closing Entries for a General Fund 607

Review Questions 608

Exercises 609

Cases 615

Problems 617

Chapter 13 627

Governmental Entities:Other Governmental Fundsand Account GroupsScope of Chapter 627

Other Governmental Funds 627

Accounting for Special Revenue Funds 627

Accounting for Capital Projects Funds 630

Accounting for Debt Service Funds 634

General Fixed Assets and General Long-Term Debt Account Groups 637

Accounting for General Fixed Assets Account Group 637

Accounting for General Long-Term Debt Account Group 640

Capital Leases of Governmental Entities 641

Accounting for Special Assessment Bonds 643

Review Questions 646

Exercises 647

Cases 651

Problems 653

Chapter 14 661

Governmental Entities:Proprietary Funds,Fiduciary Funds,and Comprehensive Annual Financial ReportScope of Chapter 661

Proprietary Funds 661

Accounting for Enterprise Funds 662

Accounting for Internal Service Funds 665

Applicability of FASB Pronouncements to Proprietary Funds 668

Fiduciary Funds 670

Accounting for Agency Funds 670

Accounting for Expendable and Nonexpendable Trust Funds 672

Accounting for Pension Trust Funds 674

Comprehensive Annual Financial Report of Governmental Entities 677

The GASB Governmental Financial Reporting Model 679

Appraisal of Accounting Standards for Governmental Entities 679

Review Questions 680

Exercises 680

Cases 685

Problems 687

Accounting Standards for Nonprofit Organizations 697

Chapter 15 697

Nonprofit OrganizationsScope of Chapter 697

Characteristics of Nonporfit Organizations 699

Fund Accounting by Nonprofit Organizations 700

Unrestricted Fund 700

Restricted Fund 707

Endowment Fund 708

Agency Fund 709

Annuity and Life Income Funds 709

Loan Fund 710

Plant Fund 710

Financial Statements of Nonprofit Organizations 710

Review Questions 715

Concluding Observations on Accounting for Nonprofit Organizations 715

Exercises 716

Cases 721

Problems 723

Part 4 Accounting for Fiduciaries 736

Chapter 16 739

Bankruptcy:Liquidation and ReorganizationScope of Chapter 739

The Bankruptcy Code 740

Bankruptcy Liquidation 740

Debtor s(Voluntary)Petition 741

Creditors (Involuntary)Petition 741

Unsecured Creditors with Priority 741

Role of Creditors 742

Role of Trustee 742

Role of Court in Liquidation 742

Property Claimed as Exempt 742

Discharge of Debtor 743

Role of Accountant in Bankruptcy Liquidation 743

Financial Condition of Debtor Enterprise:The Statement of Affairs 743

Estimated Amounts to Be Recovered by Each Class of Creditors 746

Accounting and Reporting for Trustee 748

Bankruptcy Reorganization 750

Appointment of Trustee or Examiner 751

Plan of Reorganization 751

Accounting for a Reorganization 751

Evaluation of Bankruptcy Code 754

Review Questions 754

Disclosure of Reorganization 754

Exercises 755

Cases 763

Problems 764

Chapter 17 773

Estates and TrustsScope of Chapter 773

Legal and Accounting Aspects of Estates 773

Provisions of Uniform Probate Code Governing Estates 773

Provisions of Revised Uniform Principal and Income Act GoverningEstates 776

Illustration of Accounting for an Estate 777

Legal and Accounting Aspects of Trusts 788

Provisions of Uniform Probate Code Governing Trusts 788

Illustration of Accounting for a Trust 789

Provisions of Revised Uniform Principal and Income Act Governing Trusts 789

Review Questions 792

Exercises 793

Cases 800

Problems 802

Part 5 International Accounting 808

Chapter 18 811

International Accounting Standards;Accounting forForeign Currency TransactionsScope of Chapter 811

International Accounting Standards 811

International Accounting Standards Committee 811

International Organization of Securities Commissions 813

Accounting for Foreign Currency Transactions 814

FASB Statement No.52 814

Transactions Involving Foreign Currencies 814

Transaction Gains and Losses 815

Purchase of Merchandise from a Foreign Supplier 815

Sale of Merchandise to a Foreign Customer 817

Loan Payable in a Foreign Currency 818

Loan Receivable in a Foreign Currency 818

Conclusions Regarding Transactions Involving Foreign Currencies 819

Forward Exchange Contracts 819

International Accounting Standard 21 826

Disclosures Regarding Foreign Currency Transactions 826

Review Questions 828

Exercises 830

Cases 835

Problems 836

Functional Currency 841

Translation of Foreign Currency Financial StatementsScope of Chapter 841

Chapter 19 841

Alternative Methods for Translating Foreign Entities Financial Statements 843

Standards for Translation Established by the Financial Accounting StandardsBoard 844

Remeasurement of a Foreign Entity s Accounts 845

Illustration of Remeasurement of a Foreign Entity s Account Balances 846

Transactions or Events for Year 1 846

Translation of a Foreign Entity s Financial Statements 849

Other Aspects of Foreign Currency Translation 857

International Accounting Standard 21 861

Appraisal of Accounting Standards for Foreign Currency Translation 861

Review Questions 861

Exercises 862

Cases 867

Problems 869

Chapter 20 881

Segments;Interim Reports;Reporting for the SECScope of Chapter 881

Segment Reporting 881

Background of Segment Reporting 881

Proposal to Improve Segment Reporting 883

Allocation of Nontraceable Expenses to Operating Segments 885

SEC Requirements for Segment Information 886

Reporting the Disposal of a Business Segment 887

International Accounting Standard 14 890

Interim Financial Reports 890

Problems in Interim Financial Reports 890

APB Opinion No.28 891

Reporting Accounting Changes in Interim Periods 895

Conclusions on Interim Financial Reports 896

SEC Enforcement Actions Dealing with Wrongful Applicationof Accounting Standards for Interim Financial Reports 897

Reporting for the SEC 898

Nature of Reporting to the SEC 898

Organization and Functions of the SEC 899

Interaction Between SEC and FASB 900

Integration Project and Other Recent Activities of SEC 903

Appendix:Exeerpts from 1995 Annual Report for The Walt Disney Company 904

Review Questions 920

Exercises 920

Cases 929

Problems 932

Glossary 939

Index 951