All the Information You Need to Master the 2018 CPA Exam
The Wiley CPAexcel Study Guides four–volume set, fully updated for the 2018 CPA Exam, reviews all four parts of the exam. The Study Guides provide the detailed information candidates need to master or reinforce tough topic areas. Content is organized into Bite–Sized Lessons that map perfectly to the Wiley CPAexcel online course. The books are designed to supplement the online course but may also be used as a stand–alone study tool.
- Detailed text covers the complete AICPA content blueprint
- Organized in Bite–Sized Lesson format
- Maps perfectly to the Wiley CPAexcel online course
- Explains every topic tested
- Used by leading review providers
Titles in the WILEY CPAexcel EXAM REVIEW STUDY GUIDE 2018 FOUR–VOLUME SET:
Auditing and Attestation Business Environment and Concepts Financial Accounting and Reporting Regulation
Table of Contents
About the Authors xi
About the Financial Accounting Professors xiii
Welcome to Financial Accounting and Reporting xv
Conceptual Framework and Financial Reporting 1
Financial Accounting Standards Board (FASB) 2
Overview of U.S. GAAP 2
FASB and Standard Setting 2
Accrual Accounting 6
Financial Statements 12
Financial Accounting Standards Codification 17
Conceptual Framework of Financial Reporting by Business Enterprises 21
Objectives and Qualitative Characteristics 21
Assumptions and Accounting Principles 24
Constraints and Present Value 28
Fair Value Framework 31
Fair Value Framework Introduction and Definitions 31
Recognition and Measurement 35
Inputs and Hierarchy 38
Disclosure Requirements 40
International Financial Reporting Standards (IFRS) 44
IASB Accounting Standards 44
IASB Framework 49
IFRS for SMEs 52
IFRS General–Purpose Financial Statements 55
General–Purpose Financial Statements 62
Balance Sheet/Statement of Financial Position 62
Income Statement 70
Statement of Comprehensive Income 76
Statement of Changes in Equity 80
Statement of Cash Flows 83
Sources and Uses of Cash 83
Operating, Investing, and Financing Activities 86
Operating Cash Flows Indirect Method 94
Notes to Financial Statements 102
Notes to Financial Statements 102
Risks and Uncertainties 108
Subsequent Events 113
Evaluating Financial Statements 116
Ratios Liquidity/Solvency and Operational 116
Ratios Profitability and Equity 120
Consolidated Financial Statements 123
Introduction to Consolidated Financial Statements 123
Consolidating Process 127
Consolidation at Acquisition 127
Consolidation Subsequent to Acquisition 134
Consolidation Less than 100% Ownership 139
Intercompany (I/C) Transactions and Balances 144
Intercompany I/C Transactions and Balances Introduction 144
Intercompany (I/C) Inventory Transactions 147
Intercompany (I/C) Fixed Asset Transactions 156
Intercompany (I/C) Bond Transactions 167
IFRS Consolidations 175
Combined Financial Statements 180
Variable Interest Entities (VIEs) 182
Exit or Disposal Activities and Discontinued Operations 184
Public Company Reporting Topics (SEC, EPS, Interim, and Segment) 189
U.S. Securities and Exchange Commission (SEC) 189
SEC Role and Standard–Setting Process 189
SEC Reporting Requirements 192
Earnings per Share 197
Introduction to Earnings per Share 197
Basic Earnings per Share 201
Diluted Earnings per Share 205
Earnings per Share and IFRS 215
Segment Reporting 216
Interim Financial Reporting 221
Interim Reporting Principles 221
Interim Reporting Details and IFRS 225
Special Purpose Frameworks 230
Cash, Modified Cash, Income Tax 230
Private Company Council 234
Select Financial Statement Accounts 239
Cash and Cash Equivalents 240
Cash 240
Bank Reconciliations 243
Receivables 246
Accounts Receivable Accounting and Reporting 246
Uncollectible Direct Write–Off and Allowance 249
Allowance Income Statement and Balance Sheet Approach 251
Notes Receivable 255
Criteria for Sale of Receivables 259
Factoring, Assignment, and Pledging 262
Notes Receivable Impairment 265
Inventory 267
Introduction to Inventory 267
Periodic Inventory System and Cost–Flow Assumption 271
Perpetual Inventory System and Cost–Flow Assumption 278
Evaluation of FIFO and LIFO 282
Dollar–Value LIFO 285
Subsequent Measurement of Inventory 289
Gross Margin and Relative Sales Value Method 293
Retail Inventory Method 296
Dollar–Value LIFO Retail 300
Inventory Errors 302
Losses on Purchase Commitments 304
Inventory and IFRS 306
Property, Plant, and Equipment 308
Categories and Presentation 308
Capitalized Costs 309
Valuation 311
Interest Capitalization Basics 314
Interest Capitalization Limits 317
Post–Acquisition Expenditures 322
Non–Accelerated Depreciation Methods 324
Accelerated Depreciation Methods 327
Natural Resources 331
Impairment Assets for Use and Held–for–Sale 335
Impairment and IFRS 339
PPE and IFRS 341
Nonmonetary Exchange 344
Commercial Substance 344
No Commercial Substance 348
Nonmonetary Exchanges and IFRS 351
Investments 352
Introduction Equity and Debt Investments 352
Investments in Equity Securities 357
Equity Investments at Fair Value 357
Equity Investments at Cost 361
Equity Investments Using Equity Method Accounting 365
Investments in Debt Securities 373
Debt Investments at Fair Value 373
Debt Investments at Amortized Costs 382
Investor Stock Dividends, Splits, and Rights 386
Comparison and Transfers of Investments 389
IFRS Investments in Equity and Debt Securities 397
Intangible Assets Goodwill and Other 402
Introduction to Intangible Assets 402
Goodwill 407
Research and Development Costs 414
Software Costs 417
Intangibles and IFRS 421
Payables and Accrued Liabilities 424
Current Liabilities 424
Specific Current Liabilities 428
Costs and Expenses 431
Compensated Absences 435
Contingencies, Commitments, and Guarantees (Provisions) 437
Contingent Liability Principles 437
Examples of Contingent Liabilities and Additional Aspects 440
IFRS Contingencies 443
Long–Term Debt (Financial Liabilities) 445
Notes Payable 445
Bonds Payable 451
Bond Accounting Principles 451
Bond Complications 455
Bond Fair Value Option, International 458
Modification and Debt Retirement 461
Refinancing Short–Term Obligations 461
Debt Retirement 463
Troubled Debt 465
Debt Covenant Compliance 472
Distinguishing Liabilities from Equity 477
Equity 481
Owners Equity Basics 481
Stock Issuance 490
Preferred Stock 495
Treasury Stock 498
Dividends 503
Stock Dividends and Splits 507
Dividend Allocation 510
Stock Rights, Retained Earnings 514
Book Value per Share 518
Select Transactions 521
Revenue Recognition 521
Five Steps of Revenue Recognition 521
Determining Transaction Price 527
Allocating Transaction Price 532
Special Issues in Revenue Recognition 535
Contract Modifications and Other Considerations 541
Accounting for Construction Contracts 549
Employee/Retiree Benefit Plans 556
Pension Principles, Reporting 556
Pension Expense Basics 561
Pension Expense, Delayed Recognition 564
Pension Plan Reporting, International 573
Postretirement Benefits 576
Share–Based Payments 582
Stock Options 582
Stock Awards 589
Stock Appreciation Rights 593
Income Taxes 596
Income Tax Basics 596
Permanent Differences 599
Temporary Differences 601
Tax Accrual Entry 607
Tax Allocation Process 611
Valuation Allowance for Deferred Tax Assets 615
Uncertain Tax Positions 618
Net Operating Losses 621
Accounting Changes and Error Corrections 628
Types of Changes and Accounting Approaches 628
Retrospective Application 632
Prospective Application 635
Accounting Errors Restatement 638
Business Combinations 642
Introduction to Business Combinations 642
Acquisition Method of Accounting 646
Introduction to the Acquisition Method of Accounting 646
Determining the Cost of the Business Acquired 650
Recognizing/Measuring Assets, Liabilities, and Noncontrolling Interest 654
Recognizing/Measuring Goodwill or Bargain Purchase Amount 659
Post–Acquisition Issues 662
Disclosure Requirements Acquisition Method 666
Recording Business Combinations 668
IFRS Business Combinations 679
Financial Instruments 682
Financial Instruments Introduction 682
IFRS Financial Instruments 685
Financial Instruments Disclosures 690
Derivatives and Hedging 693
Derivatives Introduction 693
Hedging Introduction 698
Fair Value Hedges 703
Cash–Flow Hedges 706
Foreign Currency Hedges 711
Effectiveness and Disclosure 713
IFRS Hedging 717
Foreign Currency Denominated Transactions 720
Introduction and Definitions 720
Import Transactions 725
Export Transactions 728
Foreign Currency Hedges 731
Introduction to Forward and Option Contracts 731
Natural (Economic) Hedge 736
Hedging Forecasted Transactions and Firm Commitment 740
Hedging Asset/Liability, Available for Sale, and Foreign Operations 744
Speculation and Summary 747
Conversion of Foreign Financial Statements 749
Introduction to Conversion of Foreign Financial Statements 749
Conversion Using Translation 751
Conversion Using Remeasurement 754
Remeasurement, Translation, and IFRS 758
Leases 760
Background, Operating Leases 760
Capital Lease Basics 763
Direct Financing Leases 768
Sales–Type Leases, International 772
Additional Aspects of Capital Leases 777
Depreciation, BPO, and Residuals 779
Capital Lease Examples 783
Sale Leasebacks and Disclosures 794
Not–for–Profit Organizations 800
Introduction to Types of Not–for–Profit Entities and Standard Setting 800
Financial Reporting 802
Donations, Pledges, Contributions, and Net Assets 810
Special Issues Recent Developments 817
Special Industries: Healthcare and Colleges 821
Healthcare Organizations 821
Colleges and Universities 827
State and Local Governments 831
State and Local Government Concepts 832
Introduction to Governmental Organizations 832
GASB Concepts Statements 835
Fund Accounting 841
Measurement Focus Basis of Accounting 847
Budgetary Accounting 852
Encumbrance Accounting 855
Deferred Outflows and Deferred Inflows of Resources 860
Net Position and Fund Balance 865
Governmental Funds 869
Proprietary Funds 886
Fiduciary Funds 891
Format and Content of Comprehensive Annual Financial Report (CAFR) 911
The Comprehensive Annual Financial Report 911
Determining the Financial Reporting Entity 926
Major Funds and Fund–Level Reporting 930
Deriving Government–Wide Financial Statements from Fund–Level Financial Statements 932
Typical Items and Specific Types of Transactions and Events 938
Interfund Transactions, Construction Projects, and Infrastructure 938
Long–Term Liabilities Other Than Bonded Debt 944
Terminology and Nonexchange Transactions 948
Special Items Recent Developments 958
Index 965
