Table of Contents

 

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

A.     Significant GAAP Changes in 2017 and Beyond. 8

B.      Reporting Information About the Financial Performance of Business Enterprises. 10

Chapter 1 – Section 1 Review Questions. 41

Chapter 1 - Latest Developments on the Accounting Front - Section 2. 43

C.      Restatements and Other Financial Reporting Abuses. 43

D.     The Gradual Demise of Company Pension Plans. 58

Chapter 1 – Section 2 Review Questions. 95

Chapter 1 - Latest Developments on the Accounting Front - Section 3. 97

E.      You Need Principles to Use Principles-Based Accounting. 97

F.      International Accounting Standards Convergence. 100

G.     Proposed Repeal of LIFO.. 109

H.     The Continued Move to Fair Value Accounting. 113

Chapter 1 – Section 3 Review Questions. 134

Chapter 1 - Latest Developments on the Accounting Front - Section 4. 136

I.       FASB Issues New Lease Standard – ASU 2016-02. 136

J.       The GAAP Codification. 153

Chapter 1 – Section 4 Review Questions. 159

Chapter 1 - Latest Developments on the Accounting Front - Section 5. 161

K.   Big GAAP-Little GAAP. 161

L.      Going Concern Assessment by Management- ASU 2014-15. 175

M.     Sustainability Standards Is a Hot Issue. 180

N.     The Politics of Disclosures. 192

Chapter 1 – Section 5 Review Questions. 199

Chapter 1 - Latest Developments on the Accounting Front - Section 6. 201

O.     FASB’s Eliminates Classification Shifting: Extraordinary Items and Discontinued Operations. 201

P.      GAAP for Terrorism and Nature Disasters. 210

Q.     Principles-Based Accounting and Risk of Litigation. 224

R.      Earning Manipulation. 226

Chapter 1 – Section 6 Review Questions. 231

Chapter 1 - Latest Developments on the Accounting Front - Section 7. 232

S.      Deferred Income Taxes, NOLs and Other Tax Matters. 232

T.      Accounting, Auditing and Tax Issues Related to Marijuana. 272

Chapter 1 – Section 7 Review Questions. 280

Chapter 1 - Latest Developments on the Accounting Front - Section 8. 282

U.     The Statement of Cash Flows- Coming Under Scrutiny by the Investment Community. 282

Chapter 1 – Section 8 Review Questions. 311

Chapter 2 - Accounting Standards Updates (ASUs) - Section 9. 313

ASU 2016-15: Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments  322

ASU 2015-17: Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. 326

ASU 2015-11: Inventory (Topic 330) Simplifying the Measurement of Inventory. 327

ASU 2015-05: Intangibles – Goodwill and Other -Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement 332

ASU 2015-03: Interest- Imputation of Interest (Subtopic 835-30)- Simplifying the Presentation of Debt Issuance Costs  334

Chapter 2 – Section 9 Review Questions. 337

Suggested Solutions. 339

Chapter 1 – Section 1 Review Questions Feedback. 339

Chapter 1 – Section 2 Review Questions Feedback. 344

Chapter 1 – Section 3 Review Questions Feedback. 349

Chapter 1 – Section 4 Review Questions Feedback. 354

Chapter 1 – Section 5 Review Questions Feedback. 359

Chapter 1 – Section 6 Review Questions Feedback. 364

Chapter 1 – Section 7 Review Questions Feedback. 367

Chapter 1 – Section 8 Review Questions Feedback. 371

Chapter 2 – Section 9 Review Questions Feedback. 376

Glossary. 380

Index. 382

Final Examination. 385