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Introduction To Business Combinations And The Conceptual Framework | |
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Learning Objectives | |
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Nature of the Combination | |
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Business Combinations: Why? Why not? | |
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Business Combinations: Historical Perspective | |
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Terminology and Types of Combinations | |
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Takeover Premiums | |
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Avoiding the Pitfalls before the Deal | |
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Determining Price and Method of Payment in Business Combinations | |
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Alternative Concepts of Consolidated Financial Statements | |
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Authors' View | |
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FASB's Conceptual Framework | |
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Summary | |
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Questions | |
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Exercises | |
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Accounting For Business Combinations | |
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Learning Objectives | |
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Historical Perspective on Business Combinations | |
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Pro Forma Statements and Disclosure Requirement | |
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Explanation and Illustration of Acquisition Accounting | |
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Contingent Consideration in an Acquisition | |
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Leveraged Buyouts | |
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Summary | |
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Deferred Taxes in Business Combinations | |
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Did Firms Prefer Pooling | |
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Questions | |
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Exercises | |
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Problems | |
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Consolidated Financial Statements- Date Of Acquisition | |
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Learning Objectives | |
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Definitions of Subsidiary and Control | |
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Requirements for the Inclusion of Subsidiaries in the Consolidated Financial Statements | |
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Reasons for Subsidiary Companies | |
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Consolidated Financial Statements | |
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Investments at the Date of Acquisition | |
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Consolidated Balance Sheets: The Use of Workpapers | |
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A Comprehensive Illustration-More Than One Subsidiary Company | |
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Limitations of Consolidated Statements | |
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Summary | |
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Deferred Taxes on the Date of Acquisition | |
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Consolidation of Variable Interest Entities | |
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Questions | |
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Exercises | |
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Problems | |
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Consolidated Financial Statements AFTER ACQUISITION | |
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Learning Objectives | |
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Accounting for Investments by the Cost | |
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Complete Equity Methods | |
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Consolidated Statements after Acquisition-Cost Method | |
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Recording Investments in Subsidiaries-Equity Method | |
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(Partial or Complete) | |
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Elimination of Intercompany Revenue and Expense Items | |
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Interim Acquisitions of Subsidiary Stock | |
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Consolidated Statement of Cash Flows | |
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Illustration of Preparation of a Consolidated Statement of Cash Flows: | |
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Year of Acquisition | |
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Summary | |
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Alternative Workpaper Format | |
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Deferred Tax Consequences When Affiliates File Separate | |
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Income Tax Returns-Undistributed Income | |
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Questions | |
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Exercises | |
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Problems | |
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Allocation And Depreciation Of Differences Between Implied And Book Values | |
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Learning Objectives | |
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xii Contents | |
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5 | |
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Allocation of the Difference between Implied and Book Values | |
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to Assets and Liabilities of Subsidiary: Acquisition Date | |
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Effect of Allocation and Depreciation of Differences between Implied and | |
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Book Values on Consolidated Net Income: Year Subsequent to Acquisition | |
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Consolidated Statements Workpaper-Investment Recorded | |
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Using the Cost Method | |
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Cost Method Analysis of Controlling and Noncontrolling Interests | |
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in Consolidated Net Income and Retained Earnings | |
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Consolidated Statements Workpaper-Investment Recorded | |
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Using Partial Equity Method | |
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Interests in consolidated Net Income and Retained Earnings | |
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Consolidated Statements Workpaper-Investment Recorded | |
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Using Complete Equity Method | |
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Complete Equity Method Analysis of Controlling Interest in | |
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Consolidated Net Income and Retained Earnings | |
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Additional Considerations Relating to Treatment of | |
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Difference between Implied and Book Values | |
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Push Down Accounting | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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Elimination Of Unrealized Profit On Intercompany Sales Of Inventory | |
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Learning Objectives | |
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Effects of Intercompany Sales of Merchandise on the Determination of Consolidated Balances | |
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Cost Method: Consolidated Statements Workpaper-Upstream Sales | |
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Cost Method-Analysis of Consolidated Net Income and Consolidated Retained Earnings | |
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Consolidated Statements Workpaper-Partial Equity Method | |
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Consolidated Statements Workpaper-Complete Equity Method | |
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Complete Equity Method-Analysis of Consolidated Net Income and Consolidated Retained Earnings | |
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Summary of Workpaper Entries Relating to Intercompany Sales of Inventory | |
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Intercompany Profit Prior to Parent-Subsidiary Affiliation | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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Contents xiii | |
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Elimination Of Unrealized Gains Or Losses On Intercompany Sales Of Property And Equipment | |
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Learning objectives | |
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Intercompany Sales of Land | |
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Intercompany Sales of Depreciable Property | |
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(Machinery | |
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Consolidated Statements Workpaper-Cost and Partial Equity Methods | |
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Calculation of Consolidated Net Income and Consolidated | |
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Retained Earnings | |
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Consolidated Statements Workpaper-Complete Equity Method | |
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Calculation and Allocation of Consolidated Net Income; | |
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Consolidated Retained Earnings: Complete Equity Method | |
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Summary of Workpaper Entries Relating to Intercompany | |
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Sales of Equipment | |
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Intercompany Interest | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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Changes In Ownership Interest | |
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Learning Objectives | |
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Parent Acquires Subsidiary Stock Through Several | |
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Open-Market Purchases-Cost Method | |
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Parent Sells Subsidiary Stock Investment on the Open Market | |
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Intercompany Bond Holdings And Miscellaneous Topics-Consolidated Financial Statements | |
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Learning Objectives | |
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Intercompany Bond Holdings | |
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Accounting for Bonds-A Review | |
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Constructive Gain or Loss on Intercompany Bond Holdings | |
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Accounting for Intercompany Bonds Illustrated | |
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Book Entry Related to Bond Investment | |
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Interim Purchase of Intercompany Bonds | |
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Notes Receivable Discounted | |
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Stock Dividends issued by a Subsidiary Company | |
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Dividends From Preacquisition Earnings | |
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Subsidiary with Both Preferred and Common Stock Outstanding | |
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Consolidating a Subsidiary with Preferred Stock Outstanding | |
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Summary | |
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xiv Contents | |
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8 | |
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Questions | |
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Exercises | |
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Problems | |
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Insolvency-Liquidation And Reorganization | |
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Learning Objectives | |
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Contractual Agreements | |
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Bankruptcy | |
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Liquidation (Chapter 7) | |
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Reorganization under the Reform Act (Chapter 11) | |
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Trustee Accounting and Reporting | |
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Realization and Liquidation Account | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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II Accounting In The International Marketplace International Accounting And The Global Economy | |
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Learning Objectives | |
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The Increasing Importance of International Accounting Standards | |
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Harmonization of Worldwide Accounting Standards | |
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Comparative Accounting Models | |
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Classification of International Accounting Models | |
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International Reporting Issues | |
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American Depository Receipts (ADRs): An Overview | |
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Summary | |
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Appendix: Reconciliation to U.S. GAAP-GlaxoSmithKline 2005 | |
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Questions | |
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Exercises | |
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Problems | |
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Accounting For Foreign Currency Transactions And Hedging Foreign Exchange Risk | |
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Learning Objectives | |
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Contents xv | |
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10 | |
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11 | |
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Exchange Rates-Means of Translation | |
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Measured versus Denominated | |
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Foreign Currency Transactions | |
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Using Forward Contracts as a Hedge | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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Translation Of Financial Statements Of Foreign Affiliates | |
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Learning Objectives | |
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Accounting for Operations in Foreign Countries | |
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Translating Financial Statements of Foreign Affiliates | |
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Objectives of Translation-SFAS No. 52 | |
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Translation Methods | |
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Identifying the Functional Currency | |
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Translation of Foreign Currency Financial Statements | |
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Translation of Foreign Financial Statements Illustrated | |
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Financial Statement Disclosure | |
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Historical Developments of Accounting Standards | |
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Summary | |
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Appendix: Accounting for a Foreign Affiliate and | |
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Preparation of Consolidated Statements Workpaper Illustrated | |
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Questions | |
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Exercises | |
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Problems | |
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Reporting For Segments And For Interim Financial Periods | |
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Learning Objectives | |
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Need for Disaggregated Financial Data | |
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Standards of Financial Accounting and Reporting | |
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International Accounting Standards Board (IASB) Position on Segment | |
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Reporting | |
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Interim Financial Reporting | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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xvi Contents | |
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III Partnership Accounting Partnerships: Formation, Operation, And Ownership Changes | |
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Learning Objectives | |
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Reasons for Forming a Partnership | |
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Characteristics of a Partnership | |
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Accounting for a Partnership | |
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Special Problems in Allocation of Income and Loss | |
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Financial Statement Presentation | |
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Changes in the Ownership of the Partnership | |
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Section A: Admission of a New Partner | |
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Section B: Withdrawal of a Partner | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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IV Fund And Nonprofit Accounting Partnership Liquidation | |
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Learning Objectives | |
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Steps in the Liquidation Process | |
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Priorities of Partnership and Personal Creditors | |
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Simple Liquidation Illustrated | |
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Installment Liquidation | |
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Incorporation of a Partnership | |
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Summary | |
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Questions | |
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Exercises | |
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Problems | |
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Introduction To Fund Accounting | |
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Learning objectives | |
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Classifications of Nonbusiness Organizations | |
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Distinctions between Nonbusiness Organizations and | |
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Profit-Oriented Enterprises | |
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Contents xvii | |
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16 | |
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Financial Accounting and Reporting Standards for | |
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Nonbusiness Organizations | |
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Fund Accounting | |
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Reporting Inventory and Prepayments | |
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in the Financial Statements | |
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Summary | |
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Appendix: City of Atlanta Partial Financial Statements | |
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Questions | |
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Exercises | |
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Problems | |
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Introduction To Accounting For State And Local Governmental Units | |
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Learning Objectives | |
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The History of Generally Accepted Governmental | |
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Accounting Standards | |
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The Structure of Governmental Accounting | |
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Governmental Fund Entities | |
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Proprietary Funds | |
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Fiduciary Funds | |
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Capital Assets and Long-Term Debt | |
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External Reporting Requirements (GASB STATEMENT No. 34) | |
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Government Fund-Based Reporting | |
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Government-Wide Reporting | |
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Management's Discussion and Analysis (MD&A) | |
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Special Assessments | |
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Interfund Activity | |
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Summary | |
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Government-Wide Financial Statements City of Atlanta | |
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Questions | |
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Analyzing Financial Statements (AFS) | |
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Exercises | |
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Problems | |
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Accounting For Nongovernment Nonbusiness Organizations: Colleges And Universities, Hospitals And Other Health Care Organizations | |
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Learning Objectives | |
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Sources of Generally Accepted Accounting Standards for Nongovernment | |
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Nonbusiness Organizations | |
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Fund Accounting | |
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Accrual Basis of Accounting | |
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xviii Contents | |
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19 | |
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Classification of Revenue and Expense | |
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Accounting for Current Funds | |
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Contributions | |
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Accounting for Plant Funds | |
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Accounting for Endowment Funds | |
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Accounting for Investments | |
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Accounting for Loan Funds | |
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Accounting for Agency (Custodial) Funds | |
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Accounting for Annuity and Life Income Funds | |
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Issues Relating to Colleges and Universities | |
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Issues Relating to Hospitals | |
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Summary | |
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Appendix: Sample Financial Statements for Private Educational Institutions | |
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Questions | |
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Exercises | |
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Problems | |
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Glossary | |
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Appendix | |
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Index | |