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Students Student Registration User Guide. Are you a new instructor to Cambridge Business Publishers? Yes, I need to register. No, I want to log in. If you are a new instructor to Cambridge Business Publishers, please use the button below to register. Click here to preview. This book covers reporting for mergers and acquisitions, foreign currency transactions, hedges, state and local governments, not-for-profit organizations, plus specialized topics. Discussion of each topic focuses on key concepts, with many illustrations from practice, using familiar organizations.
Emphasis is on the logic behind reporting standards and requirements, presented in a student-friendly way. Illustrations of business practice are taken from current financial statements and events. The text has extensive student and instructor support. PowerPoint slides, eLecture videos, guided examples, and online homework and quizzes provide students with additional learning resources, and allow instructors to use class time efficiently and effectively.
Advanced Accounting is intended for use, at either the undergraduate or graduate level, in the course commonly known as advanced accounting. It is also designed to be used in courses focusing on mergers and acquisitions that are often part of the MBA curriculum or that are offered as a nondegree, professional development program. Conceptual explanations focus on the logic underlying reporting standards. Each topic is developed by explaining the underlying business activity, the reporting goals, and how standards and procedures achieve these goals, using language students can understand.
Illustrations from actual practice enhance understanding and familiarize students with the information presented in real financial statements. Reporting requirements are increasingly complex and require substantial judgment in their application. And standards change every year. Conceptual understanding prepares students to evaluate and effectively apply future standards throughout their professional careers. Noncontrolling interests are common in the resort industry, and in Chapter 5 Las Vegas Sands Corporation illustrates reporting for noncontrolling interests in subsidiaries.
Throughout each chapter, examples from actual practice highlight major topics, using either the focus company or other companies in the same industry. Taken from current news and actual financial statements, Business Application boxes illustrate reporting practices, current issues, and controversies.
Here is an example from Chapter 2, in the section covering valuation methods for assets acquired and liabilities assumed in a business combination. Reporting Perspectives comment on topics such as the strengths and weaknesses in reporting standards, motivations for changes in standards, ethical issues, implications for information quality, and proposals for new standards.
The following is an example from Chapter 4. Extensive discussion and illustration of international financial reporting standards and proposals appear in each of the business combinations, foreign currency translation and transactions, and futures, options and swaps chapters. The following is an excerpt from Chapter 5. Reporting issues related to business combinations cover a variety of topics.
Consolidation procedures are difficult to comprehend and can be confusing to students. Emphasis in this text is on the measurement aspects of combinations—reporting assets and liabilities acquired, determining acquisition cost, valuing noncontrolling interests, and eliminating intercompany accounts. The consolidation chapters start with the reasons why companies should consolidate and the goals of consolidation, and then explain how consolidation procedures achieve these goals.
To make consolidation procedures more comprehensible, eliminations subsequent to acquisition covered in Chapters 4—6 presume that the parent uses the complete full equity method. Exclusive use of the complete full equity method allows students to focus on the goals of consolidation and the key issues in consolidation procedures. Once students develop a solid understanding of the consolidation process, changes in procedures required when the parent uses the cost method can be introduced.
To reinforce concepts presented in each chapter and ensure student comprehension, each chapter has two or more In-Chapter Review Problems that require students to recall and apply the accounting techniques and concepts described in the chapter.
The following example is from Chapter 2. Learning Objectives identify the primary learning outcomes for each chapter. An end-of-chapter Review of Key Concepts summarizes the key topics of each chapter.
End-of-chapter questions, exercises and problems cover all major topics and have a range of difficulty levels, allowing students ample opportunity to practice their understanding of the chapter. Some problems require students to use real company data in applying their knowledge.
Certain business combination problems continue from chapter to chapter. For example, P3. In P2. Each of these problems can also be assigned separately. In working through these problems, students gain a clearer understanding of accounting for business combinations, and how concepts learned in each chapter fit together.
In the state and local government chapters , three problems for the same county take the student through preparation of financial statements for the general fund P These problems can be assigned individually or as a class project. The text is completely updated for new standards, proposals, and other relevant events as of In addition, new material has been added, based primarily on suggestions from adopters, including these topics:.
There is nothing to download or install; it is accessible through any modern web browser and most mobile devices. Request a One-on-One Demo. Susan S. Professor Hamlen is the author of Advanced Accounting 4e and previously co-authored 12 editions of advanced accounting texts. She has taught courses in advanced accounting for over twenty-four years and courses in financial accounting for over nine years, at the undegraduate and graduate levels.
Professor Hamlen's research interests are in the area of reporting for financial derivatives and international reporting. She has publications in Journal of Derivatives Accounting, Theoretical Economics Letters, and in other accounting and analysis journals.
Professor Hamlen is an active member of the American Accounting Association and other accounting, analysis, and business organizations. These spreadsheets will save time in data entry and allow students to dedicate additional time to learning the material. The Excel spreadsheets are identified by the Excel icon. Cambridge Business Publishers provides high quality textbook and digital resources in accounting and finance for colleges and universities around the world.
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We suggest using Google Chrome. Cookies must be enabled in your browser while using our system. Toggle navigation. Catalog Advanced Accounting, 4e. Please Log In or Register to Continue. Register New Account. Log Into Existing Account. Request More Information. Additional Information. Leave this field empty. Welcome to Advanced Accounting 4e! Target Audience Advanced Accounting is intended for use, at either the undergraduate or graduate level, in the course commonly known as advanced accounting.
Conceptual Focus Conceptual explanations focus on the logic underlying reporting standards. Logical Flow of Topical Coverage The organization of chapters reflects the logical flow of topics: Mergers and acquisitions material is covered in Chapters 1—6. International subsidiary translation and consolidation, foreign currency transactions and hedging , and other financial derivatives futures, options, and swaps are in Chapters 7—9.
Reporting standards for state and local government and NFP organizations are in Chapters 10— Partnerships, bankruptcy and reorganization , and the SEC are covered in Chapters 14— Following is a list of focus companies by chapter.
Emphasis on Current Issues and Trends Business Applications Taken from current news and actual financial statements, Business Application boxes illustrate reporting practices, current issues, and controversies. Reporting Perspectives Reporting Perspectives comment on topics such as the strengths and weaknesses in reporting standards, motivations for changes in standards, ethical issues, implications for information quality, and proposals for new standards.
IFRS Extensive discussion and illustration of international financial reporting standards and proposals appear in each of the business combinations, foreign currency translation and transactions, and futures, options and swaps chapters. Illustrations of in practice are also provided. Here is an excerpt from Chapter 3. Clear and Logical Development of Business Combinations Topics Reporting issues related to business combinations cover a variety of topics.
It means that a reasonable person would conclude that the financial statements reasonably describe the financial condition of the company. The financial reports are, therefore, complete. Congress passed the Sarbanes-Oxley Act following a spate of corporate accounting scandals in the early s. The impetus for the legislation was the belief that some CEOs and CFOs no longer assumed responsibility for the financial reporting of their companies. By requiring these high-ranking executives to personally certify to the items referenced in part a above, Congress wanted to encourage closer scrutiny of the financial reporting process at the highest levels of the company.
The Sarbanes-Oxley Act prescribes significant penalties for falsely certifying to the completeness and correctness of the financial reports. Additionally, should the company later restate its financial statements as a result of wrongful false reporting, the CEOs and CFOs may be required to forfeit any profits earned as a result of that reporting.
The board of directors is elected by the shareowners to oversee management and to assure that the long-term interests of the shareowners are being served. Both the board of directors and management recognize that the long-term interests of shareowners are advanced by responsibly addressing the concerns of other stakeholders and interested parties including employees, recruits, customers, suppliers, GE communities, government officials and the public at large. Functions of Board The board of directors has eight scheduled meetings a year at which it reviews and discusses the performance of the Company, its plans and prospects, as well as immediate issues facing the Company.
Directors are expected to attend all scheduled board and committee meetings. In addition to its general oversight of management, the board also performs a number of specific functions, including: a. Qualifications Directors should possess the highest personal and professional ethics, integrity and values, and be committed to representing the long-term interests of the shareowners. They must also have an inquisitive and objective perspective, practical wisdom and mature judgment.
Directors must be willing to devote sufficient time to carrying out their duties and responsibilities effectively, and should be committed to serve on the board for an extended period of time. Directors should offer their resignation in the event of any significant change in their personal circumstances, including a change in their principal job responsibilities.
Directors who also serve as CEOs of publicly-traded companies or in equivalent positions should not serve on more than two boards of public companies in addition to the GE board, and other directors should not serve on more than four other boards of public companies in addition to the GE board.
The board self-evaluation process described below will be an important determinant for board tenure. Directors will not be nominated for election to the board after their 73rd birthday, although the full board may nominate candidates over 73 in special circumstances. Independence of Directors A majority of the directors will be independent directors, as independence is determined by the board, based on the guidelines set forth below.
All future non-employee directors will be independent. For a director to be considered independent, the board must determine that the director does not have any direct or indirect material relationship with GE. The board has established guidelines to assist it in determining director independence, which conform to or are more exacting than the independence requirements in the New York Stock Exchange listing requirements NYSE rules. In addition to applying these guidelines, the board will consider all relevant facts and circumstances in making an independence determination.
The board will make and publicly disclose its independence determination for each director when the director is first elected to the board and annually thereafter for all nominees for election as directors.
Similarly, independence determinations under the guidelines in section b below will be based upon the extent of commercial relationships during the three completed fiscal years preceding the determination. This helps avoid potential conflicts of interest. Governance structures serve shareholders and indirectly, public interest. Each has its strengths and weaknesses. Operating creditors — operating creditors are merchandise and service suppliers, including employees.
Generally, these liabilities are non- interest bearing. As a result, companies typically use this source of credit to the fullest extent possible, often stretching payment times.
However, abuse of operating creditors has a significant downside. The company may be unable to supply its operating needs and the damage to employee morale might have significant repercussions.
Operating credit must, therefore, be used with care. Borrowed funds — borrowed money typically carries an interest rate. Because interest expense is deductible for tax purposes, borrowed funds reduce income tax expense. The downside of debt is that the company must make principal and interest payments as scheduled. Failure to make payments on time can result in severe consequences — creditors have significant legal remedies, including forcing the company into bankruptcy and requiring its liquidation.
The lower cost of debt must be balanced against the fixed payment obligations. Sale of stock — companies can sell various classes of stock to investors. Some classes of stock have mandatory dividend payments. On other classes of stock, dividends are not a legal requirement until declared by the board of directors. Consequently, unlike debt payments, some dividends can be curtailed in business downturns.
The downside of stock issuance is its cost. Because equity is the most expensive source of capital, companies use it sparingly. Income statement. Consequently, management is able to communicate some of its private information about expected cash inflows or outflows through its recording of revenues and expenses. Presumably this information is valuable to financial statement readers because the income statement provides information about the economic profit of the company. Balance sheet.
The balance sheet reports the resources available to the company and how the company obtained those resources the sources. Statement of cash flows.
Debts must be paid in cash and employees typically only accept cash in payment of their services. Companies must generate positive cash flow over the long run in order to survive. The income statement, prepared on an accrual basis, does not directly provide information about cash flows.
But the statement of cash flows does, and, for that reason, it is a critical financial statement. The statement of cash flows tells us the sources of cash and how cash has been used. In particular, the statement reports operating, investing and financing cash flows. This is important to forecasting future cash flows. Transparent financial statements are timely and provide all the information required to effectively evaluate the financial performance of the company.
Accuracy, timeliness, and completeness are important to financial statement readers who seek financial information that is relevant and reliable. Transparency became a central issue in financial reporting following the accounting scandals of the early s, when analysts believed too many financial statements lacked transparency.
These non-GAAP income metrics often create a lower bar that companies can more easily reach. In fact, auditors must cite GAAP exceptions in their audit opinion, which creates a significant red flag.
It is a criminal offense to issue false or misleading financial statements for the purpose of influencing security prices. Also, most companies have developed and published to employees, codes of conduct that prohibit the falsification of financial reporting for the purpose of job retention, promotion, or compensation.
Officially, senior management believes that false financial reports pose significant ethical issues that must be clearly communicated to all employees. Condoning exceptions to financial reporting implicitly condones theft in all of its forms, and the corporate culture quickly deteriorates. Proper corporate governance requires the communication of clear guidelines about what information may be communicated in press releases and how internal performance measures are to be constructed.
These must be enforced to the letter.
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