Table of Contents

Chapter 1 - Latest Developments on the Accounting Front - Section 1. 9

A. Significant GAAP Changes in 2018 and Beyond. 9

B. Reporting Information About the Financial Performance of Business Enterprises. 11

Chapter 1 - Section 1 Review Questions. 44

Chapter 1 - Latest Developments on the Accounting Front - Section 2. 46

C. Restatements and Other Financial Reporting Abuses. 46

D. The Gradual Demise of Company Pension Plans. 62

Chapter 1 - Section 2 Review Questions. 92

Chapter 1 - Latest Developments on the Accounting Front - Section 3. 94

E. You Need Principles to Use Principles-Based Accounting. 94

F. International Accounting Standards Convergence. 97

G. LIFO Survives. 101

H. The Continued Move to Fair Value Accounting. 104

Chapter 1 - Section 3 Review Questions. 127

Chapter 1 - Latest Developments on the Accounting Front - Section 4. 129

I. FASB Issues New Lease Standard – ASU 2016-02. 129

J. The GAAP Codification. 147

Chapter 1 - Section 4 Review Questions. 153

Chapter 1 - Latest Developments on the Accounting Front - Section 5. 155

K. Big GAAP-Little GAAP. 155

L. Going-Concern Assessment by Management – ASU 2014-15. 169

M. Sustainability Standards Is a Hot Issue. 173

N. The Politics of Disclosures. 186

Chapter 1 - Section 5 Review Questions. 192

Chapter 1 - Latest Developments on the Accounting Front - Section 6. 194

O. FASB Eliminates Classification Shifting: Extraordinary Items and Discontinued Operations. 194

P. GAAP for Terrorism and Natural Disasters. 201

Q. Principles-Based Accounting and Risk of Litigation. 216

R. Earnings Manipulation. 217

Chapter 1 - Section 6 Review Questions. 222

Chapter 1 - Latest Developments on the Accounting Front - Section 7. 223

S. Deferred Income Taxes, NOLs and Other Tax Matters. 223

T. Accounting, Auditing and Tax Issues Related to Marijuana. 256

U. Does the FASB Add Value to Financial Statements?. 263

V. Order of Placement of Financial Statements. 266

Chapter 1 - Section 7 Review Questions. 270

Chapter 1 - Latest Developments on the Accounting Front - Section 8. 271

W. The Statement of Cash Flows – Coming Under Scrutiny by the Investment Community. 271

Chapter 1 - Section 8 Review Questions. 300

Chapter 2 - Accounting Standards Updates (ASUs) – Section 9. 302

ASU 2017-04: Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment 312

ASU 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business. 317

ASU 2016-18: Statement of Cash Flows (Topic 230) – Restricted Cash a Consensus of the FASB Emerging Issues Task Force. 326

ASU 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments 330

ASU 2015-17: Income Taxes (Topic 740) – Balance Sheet Classification of Deferred Taxes. 334

ASU 2015-11: Inventory (Topic 330) – Simplifying the Measurement of Inventory. 335

ASU 2015-05: Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement 340

ASU 2015-03: Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs 342

Chapter 2 - Section 9 Review Questions. 345