Advanced accounting:
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| Format: | Book |
|---|---|
| Language: | English |
| Published: |
Homewood, Ill. <<[u.a.]>>
Irwin
1991
|
| Edition: | 6. ed. |
| Subjects: | |
| Online Access: | Inhaltsverzeichnis |
| Physical Description: | XXXII, 1213 S. graph. Darst. |
| ISBN: | 025606962X |
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MARC
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| 245 | 1 | 0 | |a Advanced accounting |c Charles H. Griffin ... |
| 250 | |a 6. ed. | ||
| 264 | 1 | |a Homewood, Ill. <<[u.a.]>> |b Irwin |c 1991 | |
| 300 | |a XXXII, 1213 S. |b graph. Darst. | ||
| 336 | |b txt |2 rdacontent | ||
| 337 | |b n |2 rdamedia | ||
| 338 | |b nc |2 rdacarrier | ||
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| 689 | 0 | |5 DE-604 | |
| 700 | 1 | |a Griffin, Charles H. |e Sonstige |4 oth | |
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| 999 | |a oai:aleph.bib-bvb.de:BVB01-016830886 | ||
Record in the Search Index
| _version_ | 1804138145671806976 |
|---|---|
| adam_text | Contents in Brief
UNIT I
ACCOUNTING FOR COMBINED
CORPORATE ENTITIES
1 Economic and Accounting
Issues in Business
Combinations 3
2 Balance Sheet Issues in Purchase
Transactions 41
3 Income and Retained Earnings
Statement Issues in Purchase
Combinations 90
4 Additional Issues in Purchase
Combinations 141
5 Acquisitions, Mergers, and
Consolidations; The Purchase and
Pooling of Interest
Methods; and Consolidated
Earnings Per Share 186
UNIT II
CONSOLIDATED STATEMENTS: AN
EXPANDED ANALYSIS
6 Consolidated Statements—
Unconfirmed Profits on
Inventory Transfers 231
7 Consolidated Statements—
Unconfirmed Profits Transfer
of Plant Equipment
and Services 294
8 Consolidated
Statements—Preference
Interests 340
9 Consolidated Statements—
Changes in Parent Companies
Ownership Percents 409
10 Consolidated Statements—Special
Ownership
Configurations 486
11 Branch Accounting;
Segmental and Interim
Reporting 532
12 Foreign Currency Transactions 581
13 Foreign Currency Translation 616
i 14 Additional Topics in
International Financial
Reporting 660
UNIT III
ACCOUNTING FOR PARTNERSHIPS
15 Formation and Operation of
1 Partnerships 735
Contents
UNIT I
ACCOUNTING FOR COMBINED
CORPORATE ENTITIES
1 Economic and
Accounting Issues in
Business Combinations 3
Economic Motivations for
Business Combinations 4
Mechanisms for Business
Combinations 5
Accounting Methods for
Business Combinations 8
Unopposed and Opposed
Business Combinations 14
Tax Factors Affecting
Business Combinations 16
Taxable and Nontaxable
Acquisitions 16
Tax Basis of Acquired
Corporation s Assets 16
Consolidated Tax Returns 17
Summary 17
Appendix A: Working with
the Authoritative Literature of
the SEC, FASB, and AICPA 18
The Structure of Accounting
Authority 21
Research Source Materials 22
The Research Process 23
A Comprehensive Example 23
The Fact Situation 23
The Issues 24
Research 25
Appendix B: Negotiations of
Business Combinations 27
Questions 30
Exercises 31
Problems 34
Problems for Appendixes 38
2 Balance Sheet Issues In Purchase
Transactions 41
Reasons for the Acquisition
Form of Business
Combination 42
Determining the Cost of an
Acquired Company 43
Direct and Indirect Costs 44
Registration Costs 44
Contingent Consideration 45
Acquisition Date 45
Consolidated Balance Sheet 45
The Nature of a
Consolidated Balance Sheet 46
Consolidated Balance Sheet
Working Paper 55
Other Intercompany
Transactions and Subsidiary
Treasury Stock 57
4 Additional Issues in Purchase
Combinations 141
Treatment of Differentials
Subsequent to Date of
Acquisition 142
Case 1. Amortization of
Differential—Period of
Acquisition 143
Parent Company Entries—
Year 1 145
Consolidated Statement
Working Paper—Year 1 147
Case 2. Amortization of
Differential—Period
Subsequent to Acquisition 151
Parent Company Entries—
Year 2 151
Consolidated Statement
Working Paper— Year 2 151
Treatment of Separate
Accumulated Depreciation
Account 154
Realignment of Subsidiary s
Shareholders Equity 156
Stock Dividends 156
Changes in Par Value of
Subsidiary Stock 157
Appropriation of Retained
Earnings 157
Interim Purchases 158
Case 3. No Dividends Prior
to Purchase 158
Case 4. Cash Dividends
Prior to Purchase 160
Income Tax Considerations 161
Consolidated Statement of
Cash Flows 162
Combined Financial
Statements 165
Interest and Net Assets of
Subsidiary 265
Working Paper Entries for
19X2 266
Calculations of 19X2
Consolidated Net Income 269
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 270
Relationship between
Minority Interest and Net
Assets of Subsidiary 270
Summary of Consolidated
Net Income for Both Cases 271
Effect of 100 Percent
Allocation 271
Unconfirmed Profit in Both
Beginning and Ending
Inventories 272
Effect of Parent Carrying
Investment Account on Cost
or Modified Equity Method 273
Complicating Factors in the
Elimination of Unconfirmed
Profits 274
Transportation Costs on
Intercompany Sales 274
Inventory Market
i Adjustments 275
Income Tax Effects 275
Summary 276
Questions 277
Exercises 278
Problems 283
7 Consolidated Statements—
Unconfirmed Profits Transfer
of Plant and Equipment and
Services 294
Unconfirmed Profit—Plant
and Equipment 295
Contents xxi
Case 1. Upstream Sale of
Plant and Equipment 297
Analysis of Unconfirmed
Profit Confirmation 297
Parent Company Entries for
19X1 and 19X2 298
Working Paper Entries for
19X1 299
Working Paper Entries for
19X2 302
Calculations of
Consolidated Net Income 307
Relationship between
Investment Account
Balance and Net Assets
of Subsidiary 308
Relationship between
Minority Interest and Net
Assets of Subsidiary 309
Unconfirmed Profit—Related
Topics 310
Transfers of Nondepreciable
Assets Other than Inventory
and Services 310
Transfer Profits before
Affiliation 312
Unconfirmed Profit and
Interperiod Income Tax
Allocation 313
Case 2. Unconfirmed
Inventory Profits and
Interperiod Income Tax
Allocation 314
Parent Company Entries for
19X1 and 19X2 315
Working Paper Entries for
19X1 and 19X2 315
Case 3. Unconfirmed Profits
on Fixed Asset Transfers
and Interperiod Income Tax
Allocation 317
Parent Company Entries for
19X1 and 19X2 317
Contents xix
Summary 166
Appendix: Illustration of
Consolidated Statement
Working Paper Eliminating
Entries for Differential
Allocation and Amortization
when the Investment
Account is Carried under
the Cost Method 166
Questions 169
Exercises 170
Problems 177
Problems for Appendix 183
5 Acquisitions, Mergers, and
Consolidations; The Purchase and
Pooling of Interest Methods; and
Consolidated EPS 186
Accounting for Acquisitions,
Mergers, and Consolidations 187
Case 1. Acquisition/
Purchase 188
Case 2. Merger/Purchase 190
Case 3. Acquisition/Pooling
of Interests 190
Case 4. Merger/Pooling of
Interests 192
Case 5. Consolidations 192
An Example of the
Purchase/Pooling of
Interests Distinctions 193
Historical Summaries and
Trend Analysis of
Combined Entities 194
Case 6. Comparison of
Methods 196
Earnings per Share Analysis 197
Traditional Calculations 198
Primary Earnings per Share 198
Nonparticipating Preferred
Stock 379
Parent s Entries in 19X2 379
Working Paper Entries for
19X2 380
Incremental Calculation of
Consolidated Net Income 381
Case 6. Consolidated
Financial Statements
and Cumulative,
Nonparticipating Preferred
Stock 383
Differentials on Cumulative,
Nonparticipating Preferred
Stock 383
Parent s Entries in 19X2 384
Working Paper Entries for
19X2 386
Cumulative,
Nonparticipating Preferred
Stock, Consolidated Net
Income, and the One-Line
Consolidation Property of
the Equity Method 389
Summary 390
Questions 392
Exercises 393
Problems 398
9 Consolidated Statements—Changes
in Parent Companies Ownership
Percents 409
Increases in Parents Ownership
Percents 410
Block Purchases—General
Comments 410
Case 1. Block Purchase—
Open Market 411
Differentials—Calculation,
Allocation, and
Amortization 412
Contents xxiii
Parent s Entries 19X1-19X3 414
Working Paper Entries and
Incremental Calculation of
Consolidated Net Income
for 19X3 415
Case 2. Interim Block
Purchase—Open Market 416
Ownership Percent
Increasing Subsidiary Stock
Transactions—General
Comments 420
Case 3. Block Purchase—
Disproportionately Large
Number of Newly Issued
Shares Acquired by Parent 420
Differentials—Calculation,
Allocation, and
Amortization 421
Parent s 19X1 Entries,
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Net Income 423
Case 4. Interim Block
Purchase—
Disproportionately Large
Number of Newly Issued
Shares Acquired by Parent 424
Differentials—Calculation,
Allocation, and
Amortization 425
Parent s 19X1 Entries,
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Net Income 426
Extension to Acquisitions of
Other Proportions of Shares
by Parent 428
Case 5. Disproportionately
Small Number of Treasury
Shares Acquired from
Parent on Interim Date 428
Calculation, Allocation,
and Amortization of
Differentials 457
Equivalence of Properly
Structured Sales of
Subsidiary Shares to
Nonaffiliates and Other
Ownership Percent
Decreasing Transactions 460
Parent s Entries in 19X1 460
Working Paper Entries for
19X1 and Incremental
Calculation of Consolidated
Net Income 461
Questions 463
Exercises 463
Problems 470
10 Consolidated Financial
Statements—Special Ownership
Configurations 486
Multilevel Affiliations 487
Case 1. Simple Multilevel
Affiliation 487
Case 2. A More Complex 1
Multilevel Affiliation 489
Effects on Differential
Amortization 493
Chain Control (Indirect)
Less than 50 Percent 496
Intercompany Profit in
Multilevel Affiliations 496
Bilateral Stockholdings—
Traditional Allocation Method 499
Case 3. Bilateral
Stockholdings Not Involving
Parent Company 499
Case 4. Parent Company
Involvement 503
Intercompany Profit on
Asset Transfers 505
Contents xxv
Case 5. Bilateral
Stockholdings Not
Involving Parent 505
Case 6. Bilateral
Stockholdings Involving
Parent 508
Effects of Differential
Amortization 509
Recording Equity in
Affiliates Earnings 509
Matrix Applications for
Complex Affiliations 511
Bilateral Stockholdings—
Treasury Stock Method 514
Case 7. Treasury Stock
Method 516
Case 8. Continuation of
Case 7 517
Summary 520
Questions 520
Exercises 521
Problems 525
1 Branch Accounting; Segmental
and Interim Reporting 532
Branch Accounting 533
Agencies and Branches 533
Branch Accounts 534
Illustrative Entries 535
Combined Financial
Statements 537
Branch Billing in Excess of
Cost 540
Illustrative Problem 541
Reconciling Adjustments 545
Transshipments of
Merchandise 546
Other Accounting Systems 547
Segmental Reporting 547
Translation—Subsidiary s
Functional and Reporting
Currencies Different 634
Case 3. Current Rate
Method 635
Translation Gains and
Losses 637
Long-Term Intercompany
Payables under Current
Rate Method 639
Income Statements and
Balance Sheets—Temporal
and Current Rate Methods 640
Inventories and the Lower-of-
Cost-or-Market Rule 640
Case 4. Lower-of-Cost-or-
Market—Temporal Method 640
Foreign Branches 642
Multiple Exchange Rates 642
Income Tax Allocation—
Foreign Currency Translation 643
Financial Statement
Disclosures—Foreign
Currency Translation 644
Summary 644
Questions 645
Exercises 646
Problems 652
14 Additional Topics in International
Financial Reporting 660
Consolidated Financial
Statements and the Equity
Method of Domestic Parents
and Foreign Subsidiaries—
General Comments 661
Consolidations and Equity
Method—Temporal Method 662
Case 1. Consolidations and
Equity Method with No
Long-Term Intercompany
Payable 662
Contents xxvii
Differentials under the
Temporal Method 664
Parent Company Entries for
19X1 667
Working Paper Entries for
19X1 668
Case 2. Consolidations and
Equity Method with Long-
Term Intercompany Payable 669
Parent Company Entries for
19X1 672
Working Paper Entries for
19X1 673
Investment Elimination for
Subsequent Years 676
Consolidations and Equity
Method—Current Rate
Method 676
Case 3. Consolidations and
Equity Method 677
Differentials under the
Current Rate Method 678
Parent Company Entries for
19X1 682
Working Paper Entires for
19X1 684
Investment Elimination for
Subsequent Years 687
Long-Term Intercompany
Payables 689
Consolidated Statement of
Cash Flows 689
Case 4. Consolidated
Statement of Cash Flows—
Temporal Method 690
Case 5. Consolidated
Statement of Cash Flows—
Current Rate Method 692
Hedges of Net Investment in a
Foreign Entity 692
Elimination of Unconfirmed
Profits 697
Retirement of a Partner 805
Sale of an Interest to a New
Partner 806
Sale of an Interest to
Continuing Partners 806
Death of a Partner 809
Legal Status of a Retiring
or Deceased Partner 810
Summary 810
Questions 811
Exercises 812
Problems 815
17 Partnership Liquidation 826
The Liquidation Process 827
Accounting Problems in
Partnership Liquidation 827
Basic Dichotomy—
Partnership Solvency and
Insolvency 827
Simple Liquidation 828
Basic Distributive Rights 828
Partners Debit Balances 830
Partners Loans 832
Liquidation Expenses 836
Installment (Periodic)
Payments 836
Basic Accounting Problems 836
Periodic Computation of
Safe Payments to Partners 837
Partners Loans 839
Liquidation Expenses and
Unrecorded Liabilities 843
Cash Predistribution Plan 846
Insolvent Partnership 850
Basic Rights 850
Accounting Analysis of the
Insolvent Partnership 852 ^
Comprehensive Illustration 857
Summary 864
Contents xxix
Questions 865
Exercises 866
Problems 870
UNIT IV
FIDUCIARY AND INSTITUTIONAL
ACCOUNTING
18 Accounting for Estates and Trusts 879
Role of the Fiduciary in
Estate Administration 880
Inventory of Assets 881
Claims against the Estate 882
Bequests of Personal
Property 883
Role of the Fiduciary in Trust
Administration 884
Dual Bases of Accountability 886
Principal (Corpus) and
Income Distinguished 886
Special Problems 888
Fiduciary Accounts and
Reports 894
Accounting Procedures and
Entry Sequence for an
Estate 894
Illustrative Problem 896
Charge and Discharge
Statement 899
Closing Entries 900
Properties Transferred to
Trustee 902
Summary 904
Questions 905
Exercises 906
Problems 910
Corporate Liquidation and
Reorganization 921
Liquidation 922
Closing the Budgetary,
Proprietary, and
Encumbrances Accounts 995
Nonencumbrance Related
Reserves and Fund
Designations 996
General Fund Financial
Statements 997
Comprehensive Illustration
of General Fund Accounting 997
Summary 1004
Questions 1006
Exercises 1007
Problems 1012
21 Accounting for State and Local
Governmental Units—Other Funds and
Account Groups 1028
Governmental Funds 1029
Special Revenue Funds—
Additional Discussion and 2
Illustrative Entries 1030
Capital Projects Funds—
Additional Discussion and
Illustrative Entries 1032
Debt Service Funds—
Additional Discussion and
Illustrative Entries 1034
Special Assessment Funds—
Additional Discussion and
Illustrative Entries 1036
Proprietary Funds 1039
Enterprise Funds—
Additional Discussion and
Illustrative Entries 1040
Internal Service Funds—
Additional Discussion and
Illustrative Entries 1043
Fiduciary Funds—Trust and
Agency Funds 1045
Trust Funds—Illustrative
Entries 1046
Contents xxxi
Agency Funds—Illustrative
Entries 1048
Account Groups for General
Fixed Assets and General
Long-Term Debt 1048
The General Fixed Assets
Account Group—Additional
Discussion and Illustrative
Entries 1049
The General Long-Term
Debt Account Group—
Additional Discussion and
Illustrative Entries 1051
Financial Reports of State and
Local Governments 1053
Summary 1066
Questions 1067
Exercises 1068
Problems 1081
12 Accounting for Colleges and
Universities, Hospitals, and Other
Nonprofit Organizations 1102
Financial Reports of Nonprofit
Units—Uses and Objectives 1103
Authoritative
Pronouncements—Colleges
and Universities 1104
Fund Accounting by Colleges
and Universities 1105
Current Funds—Discussion 1106
Accounting for Unrestricted
Current Funds 1107
Accounting for Restricted
Current Funds II14
Loan Funds—Discussion
and Accounting Procedures 1116
Endowment and Similar
Funds—Discussion and
Accounting Procedures 1118
Annuity and Life Income
xxxii Contents
Funds—Discussion and
Accounting Procedures 1120
Plant Funds—Discussion
and Accounting Procedures 1122
Agency Funds—Discussion and
Accounting Procedures 1125
Authoritative
Pronouncements—Hospitals 1132
Fund Accounting by
Nongovernmental Hospitals 1133
General Funds—Discussion
and Accounting Procedures 1133
Specific Purpose Funds—
Discussion and Accounting
Procedures 1136
Endowment Funds—
Discussion and Accounting
Procedures 1137 Inc
Plant Expansion and
Replacement Funds—
Discussion and Accounting
Procedures 1138
Authoritative
Pronouncements—Other
Nonprofit Organizations 1140
Fund Accounting by
Voluntary Health and Welfare
Organizations 1141
oluntary Health and
Welfare Organizations—
Accounting Procedures 1147
Other Nonprofit
Organizations—Additional
Discussion 1166
Summary 1167
Questions 1169
Exercises 1169
Problems 1178
lex 1199
Properties of Consolidated
and Separate Company
Balance Sheets 58
Requirements for
Consolidated and Separate
Company Statements 59
Control 59
Separate Company
Statements of Subsidiaries—
Push Down Accounting 60
Accounting for Leveraged
Buyouts 62
Differential Allocation 64
Fair Value Determination 65
Deferred Taxes 66
Net Operating Loss
Carryforwards 67
Residual Credit Differentials 67
Preacquisition Contingencies 69
A Comprehensive Example 70
Summary 74
Questions 74
Exercises 75
Problems 83
3 Income and Retained Earnings
Statement Issues in Purchase
Combinations 90
The Cost Method 91
The Equity Method 92
Entry Comparison 93
Statements of Consolidated
Income and Retained Earnings 94
The Three-Division Working
Paper—First Year Subsequent
to Acquisition 95
Case 1. Data for First Year 95
Elimination Entries
for Case 1 98
The Three-Division Working
Paper—Second Year Subsequent
to Acquisition 102
Case 2. Data for Second
Year 102
Elimination Entries
for Case 2 103
Other Intercompany
Transactions 105
Multicompany Affiliations 106
Case 3. Parent and Two
Subsidiaries 106
Reconsideration of Basic
Definitions 110
Accounting for Investments in
Joint Ventures 112
Corporate Joint Ventures 113
Partnerships and Undivided
Interests- 114
Proportionate Consolidation 115
Real Estate Joint Ventures 115
Summary 117
Appendix: Illustration of
Consolidated Statement
Working Paper Techniques
When the Investment Account
Is Carried under the Cost
Method 117
Consolidated Statement
Working Paper—First Year
Subsequent to Acquisition 117
Consolidated Statement
Working Paper—Second t
Year Subsequent to
Acquisition 120
Questions 123
Exercises 123
Problems 131
Problems for Appendices 137
Case 7. Primary Earnings
per Share 202
Fully Diluted Earnings per
Share 204
Case 8. Fully Diluted
Earnings per Share 205
Earnings per Share
Calculations Involving
Affiliates 205
Case 9. Consolidated
Earnings per Share 207
Changing Conversion Rates
of Exercise Prices 210
Contingent Stock Issuances 211
Restatement of Prior
Period s Earnings per Share 211
Summary 212
Questions 213
Exercises 213
Problems 221
UNIT II
CONSOLIDATED STATEMENTS: AN
EXPANDED ANALYSIS
6 Consolidated Statements—
Unconfirmed Profits on Inventory
Transfers 231
Overview of the Merchandise
Transfer Problem 232
Determination of Amount of
Unconfirmed Profit to
Eliminate 233
The Allocation of
Unconfirmed Profit 235
Effect of Alternatives on
Consolidated Net Income 235
Evaluation of the
Alternatives 238
Reported and Confirmed
Incomes of Affiliates 239
Parent Company Kquity
Method Entries for
Unconfirmed Inventory Profits 243
Parent s Entries in 19X1 —
Upstream Sale 244
Parent s Entries in 19X1—
Downstream Sale 244
Parent s Entries 19X2—
Both Cases 245
Unconfirmed Inventory Profits
in the Consolidated Statement
Working Paper 246
Case I. Downstream Sale 247
Parent Company Entries for
19X1 and 19X2 247
Working Paper Entries for
19X1 248
Calculations of 19X1
Consolidated Net Income 252
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 254
Working Paper Entries for
19X2 254
Calculations of 19X2
Consolidated Net Income 257
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary- 258
Case 2. Upstream Sale 259
Parent Company Entries for
19X1 and 19X2 259
Working Paper Entries for
19X1 260
Calculations of 19X1
Consolidated Net Income 262
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 264
Relationship between Minority
Working Paper Entries for
19X1 and 19X2 318
Summary 320
Appendix: Two Additional
Unconfirmed Profit
Elimination Methods 321
Fractional Elimination 321
Modified Fractional
Elimination 324
Questions 324
Questions for Appendix 325
Exercises 325
Exercises for Appendix 330
Problems 331
Problem for Appendix 339
8 Consolidated Statements—
Preference Interests 340
Intercompany Bonds—General
Comments 341
Intercompany Bonds—
Introductory Cases 342
Case 1. 100 Percent
Ownership and
Noninterest-Bearing Bonds
Issued at Par 342
Subsidiary s Entries in 19X1,
19X2, and 19X3 343
Parent s Entries in 19X1 343
Parent s Entries in 19X2 344
Parent s Entries in 19X3 345
Effects of Equity Method
Entries Related to Bonds 345
Working Paper Entries for
19X1 346
Working Paper Entries for
19X2 346
Case 2. 100 Percent
Ownership and
Noninterest-Bearing Bonds
Issued at Discount 347
Additional Comments on
Allocating Gains and Losses
From Intercompany Bond
Acquisitions 349
Intercompany Bonds—
Advanced Cases 351
Case 3. Subsidiary s Bonds
Acquired by Parent
at Year-End 351
Subsidiary s Entries 352
Parent s Entries in 19Y5 353
Working Paper Entries
for 19Y5 354
Parent s Entries in 19Y6 357
Working Paper Entries
for 19Y6 358
Calculations of
Consolidated Net Income 363
Relationship between
Investment Account
Balance and Net Assets
of Subsidiary 366
Relationship between
Minority Interest and Net
Assets of Subsidiary 367
Generality of This Case 368
Case 4. Subsidiary s Bonds
Acquired by Parent at
Beginning of Year 371
Parent s Entries in 19Y5 371
Working Paper Entries
for 19Y5 372
Working Paper Entries
for 19Y6 374
Residual Calculations of
Consolidated Net Income 376
Preferred Stock—General
Comments 376
Allocating Subsidiary Earnings 377
Case 5. Consolidated
Financial Statements and
Noncumulative,
Differentials—Calculation.
AlliH ation. and
Amortization 429
Parent s 19X1 Entries.
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Set Income 4Jt)
Extension to Acquisitii ns ot
Other Proportions of
Treasury Shares 432
Decreases in Parents
Ownership Percents 4}2
Sales of Subsidiary Shares
t Sonaffiliates—(ieneral
Comments 433
Case 6. Sales of Subsidiary
Shares to Sonaffiliates 433
Parent s Entries m 19X4 4.14
Calculations of Parent s
19X4 Set Income and
Incremental Calculation
of 19X4 Consolidated
Set Income 4}7
Working Paper Entries
for IVX4 4.W
Reconciliation of Subsidiary
Set Income and the Sum of
Parent s Equity and
fin rity Interest in
Subsidiary Set Income 441
Extension to Subsequent
Years 441
Ownership Percent
Decreasing Subsidiary Stock
Transactions—(ieneral
Comments 442
Case 7. Disporportionately
Small Number of Newly
Issued Shares Acquired
by Parent 443
Parent s Entries in 19X1 444
Wi rkim; Paper I-nines tor
/V. / ami Im renit nttil
( alt ulation of ( onsolnlated
et lncomr 445
Relationships iiniorm liot k
illiit nl Suh iltnir Shiirts,
Is i4ii/u i f ru ( . tuni
1 iirt nt Inhrrsi in
Suh iilmr Slot kh Llcr
l:qiiil 446
( i f S. l)i pri portiontilclv
Small Surnhrr nt . Yw/v
hsiird S)uirr A( i/iiircil bv
Ptirt-nt on Interim Ptitc 447
Parent s Entries in I lXI 44X
Working Paper Entries tor
/y. 7 and hit remental
Calt ulation of Consolidated
et Income 44V
Case V. Disproportionately
l.arxe Sumhrr of Treasury
Shares Acquired from
Parent 451
Parent s Entries in /V. 7 452
Working Paper Entries for
19X1 and Incremental
Calculation of Consolidated
Set Income 453
Confirmed Profits on
Upstream Sales and
Subsidiaries Contributions
to Gains and Losses from
Intercompany Bond
Holdings 455
Summary 456
Appendix: Date-of-Control
Analysis and Equivalence of
Sales of Subsidiary Shares to
Nonaffiliates and Other
Ownership Percent Decreasing
Transactions 457
Date-of-Control analysis—
The Seed fur Segmental
Reports 548
Identifying Significant
Segments of u Firm 549
Intersegmental Transfer
Pricing 553
Allocating Common Costs
and Measuring Segmental
Profitability 553
Identifying Segmental
Assets 554
An Example of Segmental
Reporting 555
Interim Reporting 555
7 m Viewpoints from Which
to Resolve Interim
Reporting Issues 558
Income Tax Issues 560
Costs Associated with
Revenue 561
Other Costs. Special Items.
and Earnings per Share 561
Accounting Changes 562
Summary 5M
Questions 5M
Hxercises ^b5 j
Problems 570
12 Foreign Currency Transactions 581
Foreign Currency Transactions
— Introductory Comments 582
Currency Fxchange Rates 583
Fxport and Import
Transactions—Settlements
Made Within Year 584
Case I. Export Transaction
with Receivable
Denominated in Foreign
Currency 585
Case 2. Hedging Exchange
Risk on an Export
Transaction 588
Case J. Impart Iransai turn
with Pasuble ihntiniiruilrJ
in lt rti ;n Current v 5W
Case V. lledgini; f. .iihange
Risk on an Import
transaction W2
/); uwion of l: chanve
( atn ind l.i ssts from
Export ami Import
Tran.sai lions 5W
Forward l-Achangc
Contracts—Advanced Cases 595
Case S. //c(/i, / H. «/i
Ucntitluhlf /- urr/ v
Currrncy Commitment 596
( ««r ft. //«• /c/ iv
f: poscd Asset Position 600
Cast- 7. Speculation in
foreign Current v /vu hani;e
Price f- lut tuations 602
Multiple i: change Rates 604
Summary WM
Questions 606
Kxercises 607
F roblems 612
3 Foreign Currency Translation 616
The Functional Currency
Concept 6 7
Evolution of Conversion
Principles 619
Translation—Subsidiary s
Functional and Reporting
Currencies the Same 626
Oi.w /. Remeasurement
with No Long-Term
Intercompany Payable 626
Remeasurement Gains and
Losses 6.?0
Case 2. Remeasurement
with Long-Term
Intercompany Payable 632
Segmental Disclosures Related
to Operations of Consolidated
Foreign Subsidiaries and
Export Sales 698
Disclosures Related to
Previously and Currently
Unconsolidated Foreign
Subsidiaries 700
Consolidated Financial
Statements—A Worldwide
View 703
An Introduction to
International Financial
Accounting 703
Financial Accounting
Standard Setting—Contrast
between U.S. and
International Processes 703
International Financial
Reporting 711
Summary 716
Questions 717
Exercises 718
Problems 722
UNIT III
ACCOUNTING FOR PARTNERSHIPS 1
15 Formation and Operation of
Partnerships 735
Nature of a Partnership 736
Aggregative versus Entity
Concept 736
Partnership Agreement
Partnership Formation 737
Recording the Initial
Contributions 739
Income Tax Considerations 739
Partnership Operations 742
Nature and Amount of
Relative Interests 744
Allocating Net Income to
Partners 746
Financial Statement
Presentation 754
Summary 756
Appendix: The Uniform
Partnership Act 757
Part I: Preliminary
Provisions 757
Part II: Nature of
Partnership 758
Part III: Relations of
Partners to Persons
Dealing with the
Partnership 759
Part IV: Relations of
Partners to One Another 762
Part V: Property Rights of
a Partner 763
Part VI: Dissolution and
Winding Up 765
Part VII: Miscellaneous
Provisions 772
Questions 772
Exercises 773
Problems 778
6 Realignment of Ownership
Structure 789
Basic Legal Provisions 790
Admission of a New Partner 791
Admission with Payment to
the Partnership 792
A Comparison of the Bonus
and Goodwill Methods 798
Admission with Payment to
the Existing Partner(s) 800
Legal Status of a New
Partner 803
Tax Basis of a New Partner 804
Retirement or Death of a
Partner 805
Bankruptcy Reform Act of
1978 924
Assignment for Benefit of
Creditors 927
The Statement of Affairs 928
Statement Annotations 930
Special Problems 932
Extended Usefulness of the
Statement of Affairs 934
Reorganization 934
Nonjudicial Remedies 934
Judicial Remedies 936
Trustee s Accounts 937
Realization and Liquidation
Account 943
Statement Annotations 944
Special Problems 946
Summary 948
Questions 949
Exercises 950
Problems 953
20 Accounting for State and Local
Government Units—General Fund 968
Financial Reports of State
and Local Governmental
Units—Uses and Objectives 969
Historical Perspective on
Authoritative Pronouncements 972
Basic Principles of State and
Local Governmental
Accounting 975
Accounting and Reporting
Capabilities 975
Fund Accounting Systems 975
Types of Funds 976
Number of Funds 977
Accounting for Fixed Assets
and Long-Term Liabilities 977
Valuation of Fixed Assets 977
Depreciation of Fixed
Assets 977
Accural Basis in
Governmental Accounting 978
Budgeting, Budgetary
Control, and Budgetary-
Reporting 978
Transfer Revenue,
Expenditure, and Expense
Account Classification 978
Common Terminology and
Classification 979
Interim and Annual
Financial Reports 979
General Concepts Related to
Fund Governmental Accounting 980
Funds and Fund Accounting
in General (Principles
.101-.104) 980
Appropriation, Allotments,
and Apportionments 982
General Fixed Assets and
General Long-Term Debt
Account Groups (Principles
.105-.107) 982
Budgetary and
Encumbrance Accounting
(Principle .109) 983
Accural and Modified
Accural Basis Accounting
(Principles .108 and .110) 984
Intergovernmental Revenues 986
Financial Reporting
(Principles .111 and .112) 987
Accounting for the General
Fund—Basic Considerations 988
Recording the Budget and
a First Look at Closing
Entries 989
Recording Actual
Transactions 990
Recording Encumbrances 994
|
| adam_txt |
Contents in Brief
UNIT I
ACCOUNTING FOR COMBINED
CORPORATE ENTITIES
1 Economic and Accounting
Issues in Business
Combinations 3
2 Balance Sheet Issues in Purchase
Transactions 41
3 Income and Retained Earnings
Statement Issues in Purchase
Combinations 90
4 Additional Issues in Purchase
Combinations 141
5 Acquisitions, Mergers, and
Consolidations; The Purchase and
Pooling of Interest
Methods; and Consolidated
Earnings Per Share 186
UNIT II
CONSOLIDATED STATEMENTS: AN
EXPANDED ANALYSIS
6 Consolidated Statements—
Unconfirmed Profits on
Inventory Transfers 231
7 Consolidated Statements—
Unconfirmed Profits Transfer
of Plant Equipment
and Services 294
8 Consolidated
Statements—Preference
Interests 340
9 Consolidated Statements—
Changes in Parent Companies'
Ownership Percents 409
10 Consolidated Statements—Special
Ownership
Configurations 486
11 Branch Accounting;
Segmental and Interim
Reporting 532
12 Foreign Currency Transactions 581
13 Foreign Currency Translation 616
i 14 Additional Topics in
International Financial
Reporting 660
UNIT III
ACCOUNTING FOR PARTNERSHIPS
15 Formation and Operation of
1 Partnerships 735
Contents
UNIT I
ACCOUNTING FOR COMBINED
CORPORATE ENTITIES
1 Economic and
Accounting Issues in
Business Combinations 3
Economic Motivations for
Business Combinations 4
Mechanisms for Business
Combinations 5
Accounting Methods for
Business Combinations 8
Unopposed and Opposed
Business Combinations 14
Tax Factors Affecting
Business Combinations 16
Taxable and Nontaxable
Acquisitions 16
Tax Basis of Acquired
Corporation's Assets 16
Consolidated Tax Returns 17
Summary 17
Appendix A: Working with
the Authoritative Literature of
the SEC, FASB, and AICPA 18
The Structure of Accounting
Authority 21
Research Source Materials 22
The Research Process 23
A Comprehensive Example 23
The Fact Situation 23
The Issues 24
Research 25
Appendix B: Negotiations of
Business Combinations 27
Questions 30
Exercises 31
Problems 34
Problems for Appendixes 38
2 Balance Sheet Issues In Purchase
Transactions 41
Reasons for the Acquisition
Form of Business
Combination 42
Determining the Cost of an
Acquired Company 43
Direct and Indirect Costs 44
Registration Costs 44
Contingent Consideration 45
Acquisition Date 45
Consolidated Balance Sheet 45
The Nature of a
Consolidated Balance Sheet 46
Consolidated Balance Sheet
Working Paper 55
Other Intercompany
Transactions and Subsidiary
Treasury Stock 57
4 Additional Issues in Purchase
Combinations 141
Treatment of Differentials
Subsequent to Date of
Acquisition 142
Case 1. Amortization of
Differential—Period of
Acquisition 143
Parent Company Entries—
Year 1 145
Consolidated Statement
Working Paper—Year 1 147
Case 2. Amortization of
Differential—Period
Subsequent to Acquisition 151
Parent Company Entries—
Year 2 151
Consolidated Statement
Working Paper— Year 2 151
Treatment of Separate
Accumulated Depreciation
Account 154
Realignment of Subsidiary's
Shareholders' Equity 156
Stock Dividends 156
Changes in Par Value of
Subsidiary Stock 157
Appropriation of Retained
Earnings 157
Interim Purchases 158
Case 3. No Dividends Prior
to Purchase 158
Case 4. Cash Dividends
Prior to Purchase 160
Income Tax Considerations 161
Consolidated Statement of
Cash Flows 162
Combined Financial
Statements 165
Interest and Net Assets of
Subsidiary 265
Working Paper Entries for
19X2 266
Calculations of 19X2
Consolidated Net Income 269
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 270
Relationship between
Minority Interest and Net
Assets of Subsidiary 270
Summary of Consolidated
Net Income for Both Cases 271
Effect of 100 Percent
Allocation 271
Unconfirmed Profit in Both
Beginning and Ending
Inventories 272
Effect of Parent Carrying
Investment Account on Cost
or Modified Equity Method 273
Complicating Factors in the
Elimination of Unconfirmed
Profits 274
Transportation Costs on
Intercompany Sales 274
Inventory Market
i Adjustments 275
Income Tax Effects 275
Summary 276
Questions 277
Exercises 278
Problems 283
7 Consolidated Statements—
Unconfirmed Profits Transfer
of Plant and Equipment and
Services 294
Unconfirmed Profit—Plant
and Equipment 295
Contents xxi
Case 1. Upstream Sale of
Plant and Equipment 297
Analysis of Unconfirmed
Profit Confirmation 297
Parent Company Entries for
19X1 and 19X2 298
Working Paper Entries for
19X1 299
Working Paper Entries for
19X2 302
Calculations of
Consolidated Net Income 307
Relationship between
Investment Account
Balance and Net Assets
of Subsidiary 308
Relationship between
Minority Interest and Net
Assets of Subsidiary 309
Unconfirmed Profit—Related
Topics 310
Transfers of Nondepreciable
Assets Other than Inventory
and Services 310
Transfer Profits before
Affiliation 312
Unconfirmed Profit and
Interperiod Income Tax
Allocation 313
Case 2. Unconfirmed
Inventory Profits and
Interperiod Income Tax
Allocation 314
Parent Company Entries for
19X1 and 19X2 315
Working Paper Entries for
19X1 and 19X2 315
Case 3. Unconfirmed Profits
on Fixed Asset Transfers
and Interperiod Income Tax
Allocation 317
Parent Company Entries for
19X1 and 19X2 317
Contents xix
Summary 166
Appendix: Illustration of
Consolidated Statement
Working Paper Eliminating
Entries for Differential
Allocation and Amortization
when the Investment
Account is Carried under
the Cost Method 166
Questions 169
Exercises 170
Problems 177
Problems for Appendix 183
5 Acquisitions, Mergers, and
Consolidations; The Purchase and
Pooling of Interest Methods; and
Consolidated EPS 186
Accounting for Acquisitions,
Mergers, and Consolidations 187
Case 1. Acquisition/
Purchase 188
Case 2. Merger/Purchase 190
Case 3. Acquisition/Pooling
of Interests 190
Case 4. Merger/Pooling of
Interests 192
Case 5. Consolidations 192
An Example of the
Purchase/Pooling of
Interests Distinctions 193
Historical Summaries and
Trend Analysis of
Combined Entities 194
Case 6. Comparison of
Methods 196
Earnings per Share Analysis 197
Traditional Calculations 198
Primary Earnings per Share 198
Nonparticipating Preferred
Stock 379
Parent's Entries in 19X2 379
Working Paper Entries for
19X2 380
Incremental Calculation of
Consolidated Net Income 381
Case 6. Consolidated
Financial Statements
and Cumulative,
Nonparticipating Preferred
Stock 383
Differentials on Cumulative,
Nonparticipating Preferred
Stock 383
Parent's Entries in 19X2 384
Working Paper Entries for
19X2 386
Cumulative,
Nonparticipating Preferred
Stock, Consolidated Net
Income, and the One-Line
Consolidation Property of
the Equity Method 389
Summary 390
Questions 392
Exercises 393
Problems 398
9 Consolidated Statements—Changes
in Parent Companies' Ownership
Percents 409
Increases in Parents' Ownership
Percents 410
Block Purchases—General
Comments 410
Case 1. Block Purchase—
Open Market 411
Differentials—Calculation,
Allocation, and
Amortization 412
Contents xxiii
Parent's Entries 19X1-19X3 414
Working Paper Entries and
Incremental Calculation of
Consolidated Net Income
for 19X3 415
Case 2. Interim Block
Purchase—Open Market 416
Ownership Percent
Increasing Subsidiary Stock
Transactions—General
Comments 420
Case 3. Block Purchase—
Disproportionately Large
Number of Newly Issued
Shares Acquired by Parent 420
Differentials—Calculation,
Allocation, and
Amortization 421
Parent's 19X1 Entries,
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Net Income 423
Case 4. Interim Block
Purchase—
Disproportionately Large
Number of Newly Issued
Shares Acquired by Parent 424
Differentials—Calculation,
Allocation, and
Amortization 425
Parent's 19X1 Entries,
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Net Income 426
Extension to Acquisitions of
Other Proportions of Shares
by Parent 428
Case 5. Disproportionately
Small Number of Treasury
Shares Acquired from
Parent on Interim Date 428
Calculation, Allocation,
and Amortization of
Differentials 457
Equivalence of Properly
Structured Sales of
Subsidiary Shares to
Nonaffiliates and Other
Ownership Percent
Decreasing Transactions 460
Parent's Entries in 19X1 460
Working Paper Entries for
19X1 and Incremental
Calculation of Consolidated
Net Income 461
Questions 463
Exercises 463
Problems 470
10 Consolidated Financial
Statements—Special Ownership
Configurations 486
Multilevel Affiliations 487
Case 1. Simple Multilevel
Affiliation 487
Case 2. A More Complex 1
Multilevel Affiliation 489
Effects on Differential
Amortization 493
Chain Control (Indirect)
Less than 50 Percent 496
Intercompany Profit in
Multilevel Affiliations 496
Bilateral Stockholdings—
Traditional Allocation Method 499
Case 3. Bilateral
Stockholdings Not Involving
Parent Company 499
Case 4. Parent Company
Involvement 503
Intercompany Profit on
Asset Transfers 505
Contents xxv
Case 5. Bilateral
Stockholdings Not
Involving Parent 505
Case 6. Bilateral
Stockholdings Involving
Parent 508
Effects of Differential
Amortization 509
Recording Equity in
Affiliates' Earnings 509
Matrix Applications for
Complex Affiliations 511
Bilateral Stockholdings—
Treasury Stock Method 514
Case 7. Treasury Stock
Method 516
Case 8. Continuation of
Case 7 517
Summary 520
Questions 520
Exercises 521
Problems 525
1 Branch Accounting; Segmental
and Interim Reporting 532
Branch Accounting 533
Agencies and Branches 533
Branch Accounts 534
Illustrative Entries 535
Combined Financial
Statements 537
Branch Billing in Excess of
Cost 540
Illustrative Problem 541
Reconciling Adjustments 545
Transshipments of
Merchandise 546
Other Accounting Systems 547
Segmental Reporting 547
Translation—Subsidiary's
Functional and Reporting
Currencies Different 634
Case 3. Current Rate
Method 635
Translation Gains and
Losses 637
Long-Term Intercompany
Payables under Current
Rate Method 639
Income Statements and
Balance Sheets—Temporal
and Current Rate Methods 640
Inventories and the Lower-of-
Cost-or-Market Rule 640
Case 4. Lower-of-Cost-or-
Market—Temporal Method 640
Foreign Branches 642
Multiple Exchange Rates 642
Income Tax Allocation—
Foreign Currency Translation 643
Financial Statement
Disclosures—Foreign
Currency Translation 644
Summary 644
Questions 645
Exercises 646
Problems 652
14 Additional Topics in International
Financial Reporting 660
Consolidated Financial
Statements and the Equity
Method of Domestic Parents
and Foreign Subsidiaries—
General Comments 661
Consolidations and Equity
Method—Temporal Method 662
Case 1. Consolidations and
Equity Method with No
Long-Term Intercompany
Payable 662
Contents xxvii
Differentials under the
Temporal Method 664
Parent Company Entries for
19X1 667
Working Paper Entries for
19X1 668
Case 2. Consolidations and
Equity Method with Long-
Term Intercompany Payable 669
Parent Company Entries for
19X1 672
Working Paper Entries for
19X1 673
Investment Elimination for
Subsequent Years 676
Consolidations and Equity
Method—Current Rate
Method 676
Case 3. Consolidations and
Equity Method 677
Differentials under the
Current Rate Method 678
Parent Company Entries for
19X1 682
Working Paper Entires for
19X1 684
Investment Elimination for
Subsequent Years 687
Long-Term Intercompany
Payables 689
Consolidated Statement of
Cash Flows 689
Case 4. Consolidated
Statement of Cash Flows—
Temporal Method 690
Case 5. Consolidated
Statement of Cash Flows—
Current Rate Method 692
Hedges of Net Investment in a
Foreign Entity 692
Elimination of Unconfirmed
Profits 697
Retirement of a Partner 805
Sale of an Interest to a New
Partner 806
Sale of an Interest to
Continuing Partners 806
Death of a Partner 809
Legal Status of a Retiring
or Deceased Partner 810
Summary 810
Questions 811
Exercises 812
Problems 815
17 Partnership Liquidation 826
The Liquidation Process 827
Accounting Problems in
Partnership Liquidation 827
Basic Dichotomy—
Partnership Solvency and
Insolvency 827
Simple Liquidation 828
Basic Distributive Rights 828
Partners' Debit Balances 830
Partners' Loans 832
Liquidation Expenses 836
Installment (Periodic)
Payments 836
Basic Accounting Problems 836
Periodic Computation of
Safe Payments to Partners 837
Partners' Loans 839
Liquidation Expenses and
Unrecorded Liabilities 843
Cash Predistribution Plan 846
Insolvent Partnership 850
Basic Rights 850
Accounting Analysis of the
Insolvent Partnership 852 ^
Comprehensive Illustration 857
Summary 864
Contents xxix
Questions 865
Exercises 866
Problems 870
UNIT IV
FIDUCIARY AND INSTITUTIONAL
ACCOUNTING
18 Accounting for Estates and Trusts 879
Role of the Fiduciary in
Estate Administration 880
Inventory of Assets 881
Claims against the Estate 882
Bequests of Personal
Property 883
Role of the Fiduciary in Trust
Administration 884
Dual Bases of Accountability 886
Principal (Corpus) and
Income Distinguished 886
Special Problems 888
Fiduciary Accounts and
Reports 894
Accounting Procedures and
Entry Sequence for an
Estate 894
Illustrative Problem 896
Charge and Discharge
Statement 899
Closing Entries 900
Properties Transferred to
Trustee 902
Summary 904
Questions 905
Exercises 906
Problems 910
Corporate Liquidation and
Reorganization 921
Liquidation 922
Closing the Budgetary,
Proprietary, and
Encumbrances Accounts 995
Nonencumbrance Related
Reserves and Fund
Designations 996
General Fund Financial
Statements 997
Comprehensive Illustration
of General Fund Accounting 997
Summary 1004
Questions 1006
Exercises 1007
Problems 1012
21 Accounting for State and Local
Governmental Units—Other Funds and
Account Groups 1028
Governmental Funds 1029
Special Revenue Funds—
Additional Discussion and 2
Illustrative Entries 1030
Capital Projects Funds—
Additional Discussion and
Illustrative Entries 1032
Debt Service Funds—
Additional Discussion and
Illustrative Entries 1034
Special Assessment Funds—
Additional Discussion and
Illustrative Entries 1036
Proprietary Funds 1039
Enterprise Funds—
Additional Discussion and
Illustrative Entries 1040
Internal Service Funds—
Additional Discussion and
Illustrative Entries 1043
Fiduciary Funds—Trust and
Agency Funds 1045
Trust Funds—Illustrative
Entries 1046
Contents xxxi
Agency Funds—Illustrative
Entries 1048
Account Groups for General
Fixed Assets and General
Long-Term Debt 1048
The General Fixed Assets
Account Group—Additional
Discussion and Illustrative
Entries 1049
The General Long-Term
Debt Account Group—
Additional Discussion and
Illustrative Entries 1051
Financial Reports of State and
Local Governments 1053
Summary 1066
Questions 1067
Exercises 1068
Problems 1081
12 Accounting for Colleges and
Universities, Hospitals, and Other
Nonprofit Organizations 1102
Financial Reports of Nonprofit
Units—Uses and Objectives 1103
Authoritative
Pronouncements—Colleges
and Universities 1104
Fund Accounting by Colleges
and Universities 1105
Current Funds—Discussion 1106
Accounting for Unrestricted
Current Funds 1107
Accounting for Restricted
Current Funds II14
Loan Funds—Discussion
and Accounting Procedures 1116
Endowment and Similar
Funds—Discussion and
Accounting Procedures 1118
Annuity and Life Income
xxxii Contents
Funds—Discussion and
Accounting Procedures 1120
Plant Funds—Discussion
and Accounting Procedures 1122
Agency Funds—Discussion and
Accounting Procedures 1125
Authoritative
Pronouncements—Hospitals 1132
Fund Accounting by
Nongovernmental Hospitals 1133
General Funds—Discussion
and Accounting Procedures 1133
Specific Purpose Funds—
Discussion and Accounting
Procedures 1136
Endowment Funds—
Discussion and Accounting
Procedures 1137 Inc
Plant Expansion and
Replacement Funds—
Discussion and Accounting
Procedures 1138
Authoritative
Pronouncements—Other
Nonprofit Organizations 1140
Fund Accounting by
Voluntary Health and Welfare
Organizations 1141
\'oluntary Health and
Welfare Organizations—
Accounting Procedures 1147
Other Nonprofit
Organizations—Additional
Discussion 1166
Summary 1167
Questions 1169
Exercises 1169
Problems 1178
lex 1199
Properties of Consolidated
and Separate Company
Balance Sheets 58
Requirements for
Consolidated and Separate
Company Statements 59
Control 59
Separate Company
Statements of Subsidiaries—
Push Down Accounting 60
Accounting for Leveraged
Buyouts 62
Differential Allocation 64
Fair Value Determination 65
Deferred Taxes 66
Net Operating Loss
Carryforwards 67
Residual Credit Differentials 67
Preacquisition Contingencies 69
A Comprehensive Example 70
Summary 74
Questions 74
Exercises 75
Problems 83
3 Income and Retained Earnings
Statement Issues in Purchase
Combinations 90
The Cost Method 91
The Equity Method 92
Entry Comparison 93
Statements of Consolidated
Income and Retained Earnings 94
The Three-Division Working
Paper—First Year Subsequent
to Acquisition 95
Case 1. Data for First Year 95
Elimination Entries
for Case 1 98
The Three-Division Working
Paper—Second Year Subsequent
to Acquisition 102
Case 2. Data for Second
Year 102
Elimination Entries
for Case 2 103
Other Intercompany
Transactions 105
Multicompany Affiliations 106
Case 3. Parent and Two
Subsidiaries 106
Reconsideration of Basic
Definitions 110
Accounting for Investments in
Joint Ventures 112
Corporate Joint Ventures 113
Partnerships and Undivided
Interests- 114
Proportionate Consolidation 115
Real Estate Joint Ventures 115
Summary 117
Appendix: Illustration of
Consolidated Statement
Working Paper Techniques
When the Investment Account
Is Carried under the Cost
Method 117
Consolidated Statement
Working Paper—First Year
Subsequent to Acquisition 117
Consolidated Statement
Working Paper—Second t
Year Subsequent to
Acquisition 120
Questions 123
Exercises 123
Problems 131
Problems for Appendices 137
Case 7. Primary Earnings
per Share 202
Fully Diluted Earnings per
Share 204
Case 8. Fully Diluted
Earnings per Share 205
Earnings per Share
Calculations Involving
Affiliates 205
Case 9. Consolidated
Earnings per Share 207
Changing Conversion Rates
of Exercise Prices 210
Contingent Stock Issuances 211
Restatement of Prior
Period's Earnings per Share 211
Summary 212
Questions 213
Exercises 213
Problems 221
UNIT II
CONSOLIDATED STATEMENTS: AN
EXPANDED ANALYSIS
6 Consolidated Statements—
Unconfirmed Profits on Inventory
Transfers 231
Overview of the Merchandise
Transfer Problem 232
Determination of Amount of
Unconfirmed Profit to
Eliminate 233
The Allocation of
Unconfirmed Profit 235
Effect of Alternatives on
Consolidated Net Income 235
Evaluation of the
Alternatives 238
Reported and Confirmed
Incomes of Affiliates 239
Parent Company Kquity
Method Entries for
Unconfirmed Inventory Profits 243
Parent's Entries in 19X1 —
Upstream Sale 244
Parent's Entries in 19X1—
Downstream Sale 244
Parent's Entries 19X2—
Both Cases 245
Unconfirmed Inventory Profits
in the Consolidated Statement
Working Paper 246
Case I. Downstream Sale 247
Parent Company Entries for
19X1 and 19X2 247
Working Paper Entries for
19X1 248
Calculations of 19X1
Consolidated Net Income 252
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 254
Working Paper Entries for
19X2 254
Calculations of 19X2
Consolidated Net Income 257
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary- 258
Case 2. Upstream Sale 259
Parent Company Entries for
19X1 and 19X2 ' 259
Working Paper Entries for
19X1 260
Calculations of 19X1
Consolidated Net Income 262
Relationship between
Investment Account Balance
and Net Assets of
Subsidiary 264
Relationship between Minority
Working Paper Entries for
19X1 and 19X2 318
Summary 320
Appendix: Two Additional
Unconfirmed Profit
Elimination Methods 321
Fractional Elimination 321
Modified Fractional
Elimination 324
Questions 324
Questions for Appendix 325
Exercises 325
Exercises for Appendix 330
Problems 331
Problem for Appendix 339
8 Consolidated Statements—
Preference Interests 340
Intercompany Bonds—General
Comments 341
Intercompany Bonds—
Introductory Cases 342
Case 1. 100 Percent
Ownership and
Noninterest-Bearing Bonds
Issued at Par 342
Subsidiary's Entries in 19X1,
19X2, and 19X3 343
Parent's Entries in 19X1 343
Parent's Entries in 19X2 344
Parent's Entries in 19X3 345
Effects of Equity Method
Entries Related to Bonds 345
Working Paper Entries for
19X1 346
Working Paper Entries for
19X2 346
Case 2. 100 Percent
Ownership and
Noninterest-Bearing Bonds
Issued at Discount 347
Additional Comments on
Allocating Gains and Losses
From Intercompany Bond
Acquisitions 349
Intercompany Bonds—
Advanced Cases 351
Case 3. Subsidiary's Bonds
Acquired by Parent
at Year-End 351
Subsidiary's Entries 352
Parent's Entries in 19Y5 353
Working Paper Entries
for 19Y5 354
Parent's Entries in 19Y6 357
Working Paper Entries
for 19Y6 358
Calculations of
Consolidated Net Income 363
Relationship between
Investment Account
Balance and Net Assets
of Subsidiary 366
Relationship between
Minority Interest and Net
Assets of Subsidiary 367
Generality of This Case 368
Case 4. Subsidiary's Bonds
Acquired by Parent at
Beginning of Year 371
Parent's Entries in 19Y5 371
Working Paper Entries
for 19Y5 372
Working Paper Entries
for 19Y6 374
Residual Calculations of
Consolidated Net Income 376
Preferred Stock—General
Comments 376
Allocating Subsidiary Earnings 377
Case 5. Consolidated
Financial Statements and
Noncumulative,
Differentials—Calculation.
AlliH ation. and
Amortization 429
Parent's 19X1 Entries.
Related Working Paper
Entries, and Incremental
Calculation of
Consolidated Set Income 4Jt)
Extension to Acquisitii ns ot
Other Proportions of
Treasury Shares 432
Decreases in Parents'
Ownership Percents 4}2
Sales of Subsidiary Shares
t Sonaffiliates—(ieneral
Comments 433
Case 6. Sales of Subsidiary
Shares to Sonaffiliates 433
Parent's Entries m 19X4 4.14
Calculations of Parent's
19X4 Set Income and
Incremental Calculation
of 19X4 Consolidated
Set Income 4}7
Working Paper Entries
for IVX4 4.W
Reconciliation of Subsidiary
Set Income and the Sum of
Parent's Equity and
\fin rity Interest in
Subsidiary Set Income 441
Extension to Subsequent
Years 441
Ownership Percent
Decreasing Subsidiary Stock
Transactions—(ieneral
Comments 442
Case 7. Disporportionately
Small Number of Newly
Issued Shares Acquired
by Parent 443
Parent's Entries in 19X1 444
Wi'rkim; Paper I-nines tor
/V.\/ ami Im renit nttil
( alt ulation of ( onsolnlated
\et lncomr 445
Relationships iiniorm liot k
\ illiit' nl Suh\iltnir\ Shiirts,
Is \i4ii/u i f'ru ( . tuni
1'iirt nt \ Inhrrsi in
Suh\iilmr\ Slot kh Llcr\'
l:qiiil\ 446
(\i\f S. l)i\pri portiontilclv
Small Surnhrr nt .\Yw/v
hsiird S)uirr\ A( i/iiircil bv
Ptirt-nt on Interim Ptitc 447
Parent's Entries in I'lXI 44X
Working Paper Entries tor
/y.\7 and hit remental
Calt ulation of Consolidated
\et Income 44V
Case V. Disproportionately
l.arxe Sumhrr of Treasury
Shares Acquired from
Parent 451
Parent's Entries in /V.\7 452
Working Paper Entries for
19X1 and Incremental
Calculation of Consolidated
Set Income 453
Confirmed Profits on
Upstream Sales and
Subsidiaries' Contributions
to Gains and Losses from
Intercompany Bond
Holdings 455
Summary 456
Appendix: Date-of-Control
Analysis and Equivalence of
Sales of Subsidiary Shares to
Nonaffiliates and Other
Ownership Percent Decreasing
Transactions 457
Date-of-Control analysis—
The Seed fur Segmental
Reports 548
Identifying Significant
Segments of u Firm 549
Intersegmental Transfer
Pricing 553
Allocating Common Costs
and Measuring Segmental
Profitability 553
Identifying Segmental
Assets 554
An Example of Segmental
Reporting 555
Interim Reporting 555
7"m' Viewpoints from Which
to Resolve Interim
Reporting Issues 558
Income Tax Issues 560
Costs Associated with
Revenue 561
Other Costs. Special Items.
and Earnings per Share 561
Accounting Changes 562
Summary 5M
Questions 5M
Hxercises ^b5 j
Problems 570
12 Foreign Currency Transactions 581
Foreign Currency Transactions
— Introductory Comments 582
Currency Fxchange Rates 583
Fxport and Import
Transactions—Settlements
Made Within Year 584
Case I. Export Transaction
with Receivable
Denominated in Foreign
Currency 585
Case 2. Hedging Exchange
Risk on an Export
Transaction 588
Case J. Impart Iransai turn
with Pasuble ihntiniiruilrJ
in lt rti\;n Current v 5W
Case V. lledgini; f.'.iihange
Risk on an Import
transaction W2
/);'\ uwion of l:\chanve
( atn\ ind l.i ssts from
Export ami Import
Tran.sai lions 5W
Forward l-Achangc
Contracts—Advanced Cases 595
Case S. //c(/i,'/'H.' «/i
Ucntitluhlf /-'urr/'v
Currrncy Commitment 596
("««r ft. //«• /c/'iv ""
f:\poscd Asset Position 600
Cast- 7. Speculation in
foreign Current v /vu hani;e
Price f-'lut tuations 602
Multiple i:\change Rates 604
Summary WM
Questions 606
Kxercises 607
F'roblems 612
3 Foreign Currency Translation 616
The Functional Currency
Concept 6'7
Evolution of Conversion
Principles 619
Translation—Subsidiary's
Functional and Reporting
Currencies the Same 626
Oi.w /. Remeasurement
with No Long-Term
Intercompany Payable 626
Remeasurement Gains and
Losses 6.?0
Case 2. Remeasurement
with Long-Term
Intercompany Payable 632
Segmental Disclosures Related
to Operations of Consolidated
Foreign Subsidiaries and
Export Sales 698
Disclosures Related to
Previously and Currently
Unconsolidated Foreign
Subsidiaries 700
Consolidated Financial
Statements—A Worldwide
View 703
An Introduction to
International Financial
Accounting 703
Financial Accounting
Standard Setting—Contrast
between U.S. and
International Processes 703
International Financial
Reporting 711
Summary 716
Questions 717
Exercises 718
Problems 722
UNIT III
ACCOUNTING FOR PARTNERSHIPS 1
15 Formation and Operation of
Partnerships 735
Nature of a Partnership 736
Aggregative versus Entity
Concept 736
Partnership Agreement
Partnership Formation 737
Recording the Initial
Contributions 739
Income Tax Considerations 739
Partnership Operations 742
Nature and Amount of
Relative Interests 744
Allocating Net Income to
Partners 746
Financial Statement
Presentation 754
Summary 756
Appendix: The Uniform
Partnership Act 757
Part I: Preliminary
Provisions 757
Part II: Nature of
Partnership 758
Part III: Relations of
Partners to Persons
Dealing with the
Partnership 759
Part IV: Relations of
Partners to One Another 762
Part V: Property Rights of
a Partner 763
Part VI: Dissolution and
Winding Up 765
Part VII: Miscellaneous
Provisions 772
Questions 772
Exercises 773
Problems 778
6 Realignment of Ownership
Structure 789
Basic Legal Provisions 790
Admission of a New Partner 791
Admission with Payment to
the Partnership 792
A Comparison of the Bonus
and Goodwill Methods 798
Admission with Payment to
the Existing Partner(s) 800
Legal Status of a New
Partner 803
Tax Basis of a New Partner 804
Retirement or Death of a
Partner 805
Bankruptcy Reform Act of
1978 924
Assignment for Benefit of
Creditors 927
The Statement of Affairs 928
Statement Annotations 930
Special Problems 932
Extended Usefulness of the
Statement of Affairs 934
Reorganization 934
Nonjudicial Remedies 934
Judicial Remedies 936
Trustee's Accounts 937
Realization and Liquidation
Account 943
Statement Annotations 944
Special Problems 946
Summary 948
Questions 949
Exercises 950
Problems 953
20 Accounting for State and Local
Government Units—General Fund 968
Financial Reports of State
and Local Governmental
Units—Uses and Objectives 969
Historical Perspective on
Authoritative Pronouncements 972
Basic Principles of State and
Local Governmental
Accounting 975
Accounting and Reporting
Capabilities 975
Fund Accounting Systems 975
Types of Funds 976
Number of Funds 977
Accounting for Fixed Assets
and Long-Term Liabilities 977
Valuation of Fixed Assets 977
Depreciation of Fixed
Assets 977
Accural Basis in
Governmental Accounting 978
Budgeting, Budgetary
Control, and Budgetary-
Reporting 978
Transfer Revenue,
Expenditure, and Expense
Account Classification 978
Common Terminology and
Classification 979
Interim and Annual
Financial Reports 979
General Concepts Related to
Fund Governmental Accounting 980
Funds and Fund Accounting
in General (Principles
.101-.104) 980
Appropriation, Allotments,
and Apportionments 982
General Fixed Assets and
General Long-Term Debt
Account Groups (Principles
.105-.107) 982
Budgetary and
Encumbrance Accounting
(Principle .109) 983
Accural and Modified
Accural Basis Accounting
(Principles .108 and .110) 984
Intergovernmental Revenues 986
Financial Reporting
(Principles .111 and .112) 987
Accounting for the General
Fund—Basic Considerations 988
Recording the Budget and
a First Look at Closing
Entries 989
Recording Actual
Transactions 990
Recording Encumbrances 994 |
| any_adam_object | 1 |
| any_adam_object_boolean | 1 |
| building | Verbundindex |
| bvnumber | BV023506414 |
| callnumber-first | H - Social Science |
| callnumber-label | HF5635 |
| callnumber-raw | HF5635.A24 1991 |
| callnumber-search | HF5635.A24 1991 |
| callnumber-sort | HF 45635 A24 41991 |
| callnumber-subject | HF - Commerce |
| classification_rvk | QP 800 QP 820 |
| ctrlnum | (OCoLC)915801574 (DE-599)BVBBV023506414 |
| dewey-full | 657/.04620 |
| dewey-hundreds | 600 - Technology (Applied sciences) |
| dewey-ones | 657 - Accounting |
| dewey-raw | 657/.046 20 |
| dewey-search | 657/.046 20 |
| dewey-sort | 3657 246 220 |
| dewey-tens | 650 - Management and auxiliary services |
| discipline | Wirtschaftswissenschaften |
| discipline_str_mv | Wirtschaftswissenschaften |
| edition | 6. ed. |
| format | Book |
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| id | DE-604.BV023506414 |
| illustrated | Illustrated |
| index_date | 2024-07-02T22:30:48Z |
| indexdate | 2024-07-09T21:23:32Z |
| institution | BVB |
| isbn | 025606962X |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-016830886 |
| oclc_num | 915801574 |
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| owner_facet | DE-521 DE-523 DE-188 |
| physical | XXXII, 1213 S. graph. Darst. |
| publishDate | 1991 |
| publishDateSearch | 1991 |
| publishDateSort | 1991 |
| publisher | Irwin |
| record_format | marc |
| spelling | Advanced accounting Charles H. Griffin ... 6. ed. Homewood, Ill. <<[u.a.]>> Irwin 1991 XXXII, 1213 S. graph. Darst. txt rdacontent n rdamedia nc rdacarrier Accounting Rechnungswesen (DE-588)4048732-5 gnd rswk-swf Rechnungswesen (DE-588)4048732-5 s DE-604 Griffin, Charles H. Sonstige oth HBZ Datenaustausch application/pdf http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016830886&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA Inhaltsverzeichnis |
| spellingShingle | Advanced accounting Accounting Rechnungswesen (DE-588)4048732-5 gnd |
| subject_GND | (DE-588)4048732-5 |
| title | Advanced accounting |
| title_auth | Advanced accounting |
| title_exact_search | Advanced accounting |
| title_exact_search_txtP | Advanced accounting |
| title_full | Advanced accounting Charles H. Griffin ... |
| title_fullStr | Advanced accounting Charles H. Griffin ... |
| title_full_unstemmed | Advanced accounting Charles H. Griffin ... |
| title_short | Advanced accounting |
| title_sort | advanced accounting |
| topic | Accounting Rechnungswesen (DE-588)4048732-5 gnd |
| topic_facet | Accounting Rechnungswesen |
| url | http://bvbr.bib-bvb.de:8991/F?func=service&doc_library=BVB01&local_base=BVB01&doc_number=016830886&sequence=000002&line_number=0001&func_code=DB_RECORDS&service_type=MEDIA |
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