Pearson Canada - Kin Lo, George Fisher - Intermediate Accounting, with MyAccountingLab > Table of Contents

Table of Contents

Brief Table of Contents

Volume 1

• Chapter 1: Fundamentals of Financial Accounting Theory
• Chapter 2: Frameworks for Financial Reporting
• Chapter 3: Accrual Accounting
• Chapter 4: Revenue and Expense Recognition
• Chapter 5: Cash and Receivables
• Chapter 6: Inventories
• Chapter 7: Financial Assets
• Chapter 8: Property, Plant, and Equipment
• Chapter 9: Intangible Assets, Goodwill, Mineral Resources, and Agriculture
• Chapter 10: Applications of Fair Value: Revaluations, Impairments, and Non-Current Assets Held for Sale

Volume 2

• Chapter 11: Current Liabilities and Contingencies
• Chapter 12: Non-current Financial Liabilities
• Chapter 13: Equities
• Chapter 14: Complex Financial Instruments
• Chapter 15: Earnings Per Share
• Chapter 16: Accounting for Income Taxes
• Chapter 17: Pensions and Other Employee Future Benefits
• Chapter 18: Accounting for Leases
• Chapter 19: Statement of Cash Flows
• Appendices
• Glossary
• Index

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Detailed Table of Contents Volume 1

Preface

Chapter 1: Fundamentals of Financial Accounting Theory

• Uncertainty and Information Asymmetries
  • 1. Adverse selection example
  • 2. Moral hazard example
  • 3. Adverse selection and moral hazard defined
  • 4. Application of adverse selection and moral hazard to accounting
  • 5. Moral hazard in action: The financial crisis of 2008
• Desirable Characteristics of Accounting Information and Trade-offs
• Economic Consequences of Accounting Choice and Earnings Management
• Accounting and Securities Markets
  • 1. Accounting information in securities markets
  • 2. Using information from securities markets in accounting
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 2: Frameworks for Financial Reporting

• Conceptual Frameworks for Financial Accounting as Strategies to Meet Market Demands for Information
  • 1. Sketch of a business plan for a carmaker
    • a. Assessing demand
    • b. Supply planning
  • 2. Outline of a conceptual framework for financial reporting
• Components of the IFRS Framework
  • 1. Users
  • 2. Users' needs and objectives
    • a. Prediction of future cash flows, dividends, or earnings
    • b. Assessment of risk
    • c. Contracting and compliance
    • d. Assessment of stewardship and competence
  • 3. Qualitative characteristics
    • a. Understandability
    • b. Relevance
    • c. Reliability
    • d. Comparability
  • 4. Elements of financial statements
  • 5. Recognition
  • 6. Measurement
  • 7. Constraints
    • a. Benefits vs. costs
    • b. Timeliness vs. reliability
    • c. Balance among qualitative characteristics
  • 8. Assumptions
    • a. Accrual basis
    • b. Going concern
    • c. Financial capital maintenance
• Feature: The role of the IFRS Framework in relation to specific accounting standards
  • 9. Example for illustrating the application of the IFRS Framework
• Other Conceptual Frameworks
• Standard Setting: Internationally and in Canada
  • 1. Standards internationally
  • 2. Standards in Canada
  • 3. Organization and authority for setting accounting and auditing standards in Canada
• Feature: Understanding the organization and labelling of accounting standards
  • 4. Globalization of standard setting
• Feature: Going bananas: Lessons from evolutionary biology
• Feature: A perspective on global standard setting
• Standards in Transition
• Appendix: Illustration of Capital Maintenance Concepts
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 3: Accrual Accounting

• Demand for Periodic Reporting and the Need for Accrual Accounting
• Accrual versus Cash Accounting
• Uncertainty and the Essential Role of Estimates in Accrual Accounting
• Quality of Earnings and Earnings Management
• Periodicity, Cut-off, and Subsequent Events
  • 1. Periodicity
  • 2. Cut-off
• Accounting Changes: Errors, Changes in Accounting Policy, and Changes in Estimates
  • 1. Correction of errors
  • 2. Changes in accounting policy
  • 3. Changes in accounting estimates
  • 4. Illustrative example for practice
  • 5. Summary
• The Structure of Financial Reports and Their Relationships
  • 1. Overview of financial statement presentation and interrelationships
• Feature: Double-entry accounting and the balance sheet
  • 2. Balance sheet
    • a. Assets
    • b. Liabilities
    • c. Equity
  • 3. Statement of changes in equity
  • 4. Statement of comprehensive income
  • 5. Cash flow statement
  • 6. Note disclosures
  • 7. Discontinued operations and other non-current assets held for sale
  • 8. Comparative figures
  • 9. Putting it all together: an illustrative example
• Substantive Differences between Relevant IFRS and ASPE
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 4: Revenue and Expense Recognition

• Range of Conceptual Alternatives for Revenue Recognition
• General Revenue Recognition Criteria
  • 1. Sale of goods
  • 2. Provision of services
• Expense Recognition
• Specific Revenue Recognition Situations
  • 1. Consignment sales
  • 2. Installment sales
  • 3. Franchise revenue
  • 4. Barter transactions
  • 5. Revenue recognition at point of production
• Accounting for Construction Contracts
  • 1. Revenue recognition for cost-plus contracts
  • 2. Revenue recognition for fixed-price contracts: Application of changes in estimates
  • 3. Revenue recognition for fixed-price contracts: The cost-to-cost approach
  • 4. Accounting cycle for construction contracts
  • 5. Application of prudence (conservatism) in accounting for construction contracts
  • 6. Revenue recognition when outcome of construction contracts is uncertain: Cost recovery method
  • 7. Alternative in ASPE: Completed contract method
• Risk of Earnings Overstatement in Construction Contracts
  • 1. Intentional overstatement: Earnings management
  • 2. Unintentional overstatement: The winner's curse
• Presentation and Disclosure
  • 1. General presentation and disclosure requirements
  • 2. Presentation and disclosure for construction contracts
• Substantive Differences between IFRS and ASPE
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 5: Cash and Receivables

• Cash and Cash Equivalents
  • 1. Inclusions in cash and cash equivalents
  • 2. Exclusions from cash and cash equivalents
  • 3. Implications for cash flow statement
• Bank Reconciliations
• Cash Management, Internal Controls, and Fraud Prevention
  • 1. Segregation of duties
  • 2. Monitoring by staff and customers
• Feature: Ethics and honesty in relation to cash and non-cash items
  • 3. Implications for internal controls of other areas
• Overview of Accounting for Non-Cash Assets
  • 1. Initial recognition and measurement: Asset or expense?
  • 2. Asset valuation on the balance sheet
  • 3. Derecognition: Removal of asset from the balance sheet
• Trade Receivables: Initial Classification, Recognition, and Measurement
• Subsequent Measurement of Trade Receivables: Accounting for Bad Debts
  • 1. Percentage of sales method (income statement approach)
  • 2. Aging of accounts method (balance sheet approach)
• Derecognition of Receivables: Collection, Write-offs, and Disposals
  • 1. Collection
  • 2. Write-offs
  • 3. Transfer of receivables (factoring)
    • a. Transfer without recourse
    • b. Transfer with recourse
  • 4. Transfer of receivables (securitization)
• Comprehensive Illustration of Initial Recognition, Subsequent Measurement, and Derecognition of Accounts Receivable
• Non-trade Receivables
• Accounting for Restructured Loans (From Lender's Perspective)
• Potential Earnings Management Using Receivables
  • 1. Revenue recognition policy
  • 2. Change in credit policy without change in allowance
  • 3. Channel stuffing
• Feature: Channel stuffing at Chrysler
  • 4. Change in the calculation of net realizable value
  • 5. Sale of receivables
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 6: Inventories

• Information Systems for Inventory Control
  • 1. Perpetual system
  • 2. Periodic system
  • 3. Comparison and illustration
• Initial Recognition and Measurement
  • 1. Purchased goods
  • 2. Manufactured goods
    • a. Fixed overhead capitalization when production is above normal
    • b. Fixed overhead capitalization when production levels are below normal
• Subsequent Measurement and Derecognition: Cost Allocation between Balance Sheet and Income Statement
  • 1. Specific identification
  • 2. Cost flow assumptions
    • a. First-in, first-out (FIFO)
    • b. Last-in, first-out (LIFO)
    • c. Weighted average cost
    • d. Comparison of cost flow assumptions
  • 3. Retail inventory method
• Feature: Retail pricing terminology
• Subsequent Measurement: Interaction of Cost Flow Assumptions and Information System for Inventory Control
• Subsequent Measurement: Application of Prudence/Conservatism
  • 1. Meaning of "market"
  • 2. Unit of evaluation
• Accounting for Inventory Errors
• Presentation and Disclosure
• Appendix: Usage of Last-In, First-Out (LIFO) in the United States
  • 1. Balance sheet effect and the LIFO reserve
  • 2. Income effect and LIFO liquidation
  • 3. Distortion of turnover ratio
  • 4. Unit of evaluation
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 7: Financial Assets

• Financial Assets
• Overview of Financial Asset Classification
• Strategic Equity Investments
  • 1. Subsidiaries
  • 2. Joint ventures
  • 3. Associates
• Non-strategic Investments
  • 1. Held for trading
  • 2. Available for sale
  • 3. Held to maturity
  • 4. Loans and receivables
  • 5. Reclassifications from one category to another
  • 6. Example: A debt investment to illustrate differences among held-for-trading, available-for-sale, and held-to-maturity classifications
• Amortization of Debt Investments
  • 1. The effective interest method
  • 2. Using amortized cost in the accounting for financial assets
    • a. Held-to-maturity financial assets
    • b. Debt instruments classified as available for sale
• Substantive Differences between Relevant IFRS and ASPE
• tandards in Transition
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 8: Property, Plant, and Equipment

• Initial Recognition and Measurement
  • 1. What should an enterprise capitalize?
    • a. Self-construction costs
    • b. Borrowing costs on self-constructed assets
    • c. Period of capitalization
    • d. Replacements vs. repairs
    • e. Costs of dismantlement, removal, and site restoration
  • 2. How should enterprises categorize costs capitalized into property, plant, and equipment?
    • a. Unit of measurement and componentization
    • b. Bundled purchases
• Subsequent Measurement
  • 1. Basis of measurement: Historical cost vs. current value
  • 2. Impairment
  • 3. Depreciation under the historical cost basis
    • a. Total amount to depreciate: the depreciable amount
    • b. Period of depreciation
    • c. Pattern of depreciation
    • d. Other considerations
    • e. Illustration
    • f. Impact of changes in estimates on depreciation
• Derecognition
• Feature: Does depreciation policy matter?
• Non-monetary Transactions
  • 1. Classification of non-monetary exchanges
    • a. General case
    • b. Exceptions
  • 2. Recognition of non-monetary exchanges
• Government Grants
  • 1. How should enterprises recognize government grants—as equity capital or income?
  • 2. When should enterprises recognize government grants?
  • 3. How should enterprises present government grants?
  • 4. Repayment of government grants
• Presentation and Disclosure of Property, Plant, and Equipment
• Substantive Differences between IFRS and ASPE
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 9: Intangible Assets, Goodwill, Mineral Resources, and Agriculture

• Intangible Assets: Initial Recognition and Measurement
  • 1. What qualifies as an intangible asset?
• Feature: Common items that are potentially intangible assets
  • • a. Lack of physical substance
    • b. Non-monetary nature
    • c. Identifiability
  • 2. What amounts should an enterprise capitalize as intangible assets?
    • a. Acquired intangibles
    • b. Internally developed intangibles
• Intangible Assets—Subsequent Measurement
  • 1. Intangible assets with indefinite useful lives
  • 2. Intangible assets with finite useful lives
• Intangible Assets: Derecognition
• Goodwill
• Presentation and Disclosure
• Mineral Resources
  • 1. Three phases in mineral activities: Exploration, development, and extraction
  • 2. Full cost alternative under ASPE
  • 3. Other aspects of accounting for mineral exploration costs
  • 4. Example to illustrate the accounting for mineral resources
• Agriculture
  • 1. Definition of agricultural activity and scope of IAS 41
  • 2. Accounting for biological assets and agricultural produce
    • a. Agricultural produce
    • b. Biological assets
    • c. Gains and losses from fair value measurement
• Substantive Differences between IFRS and ASPE
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Chapter 10: Applications of Fair Value: Revaluations, Impairments, and Non-current Assets Held for Sale

• Revaluation Model of Measuring Carrying Values Subsequent to Initial Acquisition
  • 1. Adjusting asset values for revaluation
    • a. Proportional method
    • b. Elimination method
    • c. Comparison of proportional and elimination methods
  • 2. Accounting for the effect of revaluation on equity
  • 3. Adjusting depreciation in periods subsequent to revaluation
• Impairment
  • 1. Preliminary steps: What to test for impairment
  • 2. Impairment test
    • a. Fair value less cost to sell
    • b. Value in use
    • c. Example testing for impairment
  • 3. Recognition of impairment
    • a. Allocation of impairment loss to assets within a cash generating unit
    • b. Entries to record impairment loss
    • c. Adjustments to depreciation/amortization
    • d. Reversals of impairment
  • 4. Differences between impairment and revaluation
  • 5. Impairment standards in ASPE
  • 6. Economic roles of impairments
    • a. Communicating information to users
    • b. Supporting efficient contracting and reducing earnings management
    • c. Facilitating rational decision making
• Non-current Assets Held for Sale and Discontinued Operations
• Substantive Differences between IFRS and ASPE
• Summary
• References
• Glossary
• Problems
• Mini-Cases

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Appendix: Time Value of Money and Simple Valuation Techniques

• Future Values and Present Values
  • 1. Future value of a single sum received now
  • 2. Present value of a single sum to be received in the future
  • 3. Present value of a perpetuity
  • 4. Present value of a perpetuity with growth
  • 5. Present value of an ordinary annuity
  • 6. Present value of an annuity due
• Computation Techniques
• Simple Valuation Methods
  • 1. Valuation using book value
  • 2. Valuation using dividends
  • 3. Valuation using earnings and earnings multiples
• Table of Present Value Factors for an Ordinary Annuity of $1 (PVFA)

Appendix: TI VAII Plus

Appendix: Excel Tutorial

Glossary

Index

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Detailed Table of Contents Volume 2

Chapter 11: Current Liabilities and Contingencies

• A. Introduction
• B. Definition, Classification, and Measurement of Liabilities
  • 1. Liabilities defined
  • 2. Recognition
  • 3. Financial and non-financial liabilities
  • 4. Current versus non-current liabilities
  • 5. Measurement
• C. Current Liabilities
  • 1. Trade payables
  • 2. Notes payable
  • 3. Credit (loan) facilities
  • 4. Taxes payable
    • a. Sales taxes
    • b. Income taxes
  • 5. Warranties
  • 6. Deferred revenues
  • 7. Customer loyalty programs
  • 8. Other current liabilities
    • a. Obligations denominated in foreign currencies
    • b. Maturing debt to be refinanced
    • c. Non-current debt in default
• D. Contingencies
  • 1. Contingencies involving potential outflows
    • a. Recognition of a provision
    • b. Disclose as a contingent liability
    • c. No action required
  • 2. Contingencies involving potential inflows
    • a. Recognition as an asset
    • b. Disclose as a contingent asset
    • c. No action required
  • 3. Treatment of contingencies under ASPE
• E. Commitments and Guarantees
  • 1. Commitments
  • 2. Guarantees
• F. Presentation and Disclosure
• G. Substantive Differences between Relevant IFRS and ASPE
• H. Standards in Transition
• I. Summary
• J. References
• K. Glossary
• L. Problems
• M. Mini-Cases

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Chapter 12: Non-Current Financial Liabilities

• A. Introduction
  • 1. Overview
  • 2. Financial leverage
  • 3. Debt rating agencies
• B. Common Non-Current Financial Liabilities
  • 1. Notes payable
  • 2. Bonds
    • a. Overview
    • b. Types of bonds
• C. Initial Measurement
  • 1. Debt exchanged for non-cash assets
  • 2. Debt issued at non-market rates of interest
  • 3. Compound financial instruments
  • 4. Issuing bonds at par, premium, or a discount
  • 5. Determining the sales price of a bond when the yield is given
  • 6. Timing of bond issuance
    • a. Selling bonds on the issue date specified in the indenture
    • b. Selling bonds after the specified issue date
• D. Subsequent Measurement
  • 1. Effective interest rate
  • 2. Amortization using the effective interest method
  • 3. The straight-line method
• E. Derecognition
  • 1. Derecognition at maturity
  • 2. Derecognition prior to maturity
  • 3. Derecognition through offsetting and in-substance defeasance
    • a. Offsetting
    • b. In-substance defeasance
• F. Putting It All Together: A Comprehensive Bond Example
• G. Other Issues
  • 1. Decommissioning costs
  • 2. Off-balance-sheet obligations
• H. Presentation and Disclosure
• I. Substantive Differences between Relevant IFRS and ASPE
• J. Summary
• K. References
• L. Glossary
• M. Problems
• N. Mini-Cases

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Chapter 13: Equities

• A. Introduction
• B. Components of Equity for Accounting Purposes
  • 1. Contributed capital
    • a. Common shares (or ordinary shares)
    • b. Preferred shares
    • c. Par value vs. shares with no par value
    • d. Cumulative vs. non-cumulative dividends
    • e. Voting rights
    • f. Number of shares authorized, issued, or outstanding
  • 2. Accumulated earnings
    • a. Retained earnings
    • b. Accumulated other comprehensive income
  • 3. Summary
• C. Equity Transactions Relating to Contributed Capital
  • 1. Issuance of shares
  • 2. Stock splits
  • 3. Reacquisition of shares
    • a. Cancellation of reacquired shares
    • b. Holding reacquired shares in treasury
• D. Equity Transactions Relating to Retained Earnings
  • 1. Cash dividends
    • a. Declaration date
    • b. Ex-dividend date and date of record
    • c. Payment date
    • d. Summary
  • 2. Stock dividends
  • 3. Property dividends (dividends in kind)
• E. Presentation and Disclosure
• F. Comprehensive Illustration of Equity Transactions
• G. Substantive Differences between Relevant IFRS and ASPE
• H. Summary
• I. References
• J. Glossary
• K. Problems
• L. Mini-Cases

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Chapter 14: Complex Financial Instruments

• A. Introduction
• B. Types of Financial Instruments
  • 1. Basic financial assets, financial liabilities, and equity instruments
  • 2. Derivative financial instruments
    • a. Options
    • b. Warrants
    • c. Forwards
    • d. Futures
    • e. Swaps
  • 3. Compound financial instruments
• C. Accounting for Complex Financial Instruments
  • 1. Derivatives
  • 2. Compound financial instruments
    • a. Issuance
    • b. Measurement at the balance sheet date
    • c. Accounting for an exercise of options or warrants
    • d. Accounting for conversions of bonds or preferred shares
  • 3. Stock compensation plans
    • a. Value of stock options
    • b. Period of expense recognition
    • c. Accounting for option exercise or expiration
• D. Accounting for Hedges
• E. Substantive Differences between Relevant IFRS and ASPE
• F. Summary
• G. References
• H. Glossary
• I. Problems
• J. Mini-Cases

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Chapter 15: Earnings per Share

• A. Introduction to Basic and Diluted Earnings per Share
• B. Calculating Basic EPS
  • 1. Numerator: Net income available to ordinary shareholders
  • 2. Denominator: Weighted-average number of ordinary shares outstanding
  • 3. Complicating factors
    • a. Treasury shares
    • b. Stock splits and stock dividends
  • 4. Basic EPS
• C. Calculating Diluted EPS
  • 1. Identify all potential ordinary shares
  • 2. Compute incremental EPS for all potential ordinary shares
    • a. Convertible bonds and preferred shares: The if-converted method
    • b. Options and warrants: The treasury stock method
  • 3. Rank order incremental EPS
  • 4. Sequentially compare incremental EPS to provisional EPS to determine diluted EPS
  • 5. Effect of discontinued operations
  • 6. Diluted EPS when basic EPS is negative
  • 7. Other considerations
    • a. Convertible securities issued, redeemed, or exchanged during the year
    • b. Convertible securities with more than one conversion option
    • c. Potential ordinary shares that are not yet eligible to be converted/exercised
    • d. Bonds sold at a discount or premium
    • e. Purchased options versus written options
  • 8. Putting it all together: A comprehensive example
• D. Presentation and Disclosure
  • 1. Presentation
  • 2. Disclosure
• E. Substantive Differences between Relevant IFRS and ASPE
• F. Summary
• G. References
• H. Glossary
• I. Problems
• J. Mini-Cases

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Chapter 16: Accounting for Income Taxes

• A. Introduction
• B. Methods of Accounting for Income Taxes
  • 1. Taxes payable method
  • 2. Tax allocation methods
    • a. Income statement approach—Deferral method
    • b. Balance sheet approach—Accrual method
  • 3. Summary of alternative approaches
• C. Applying the Accrual Method: Permanent and Temporary Differences
  • 1. Permanent differences
  • 2. Temporary differences
    • a. Common temporary differences
    • b. Temporary differences due to depreciation
  • 3. Disposals of depreciable assets
    • a. Disposal of an asset from an asset pool
    • b. Disposal of specifically identified assets
• D. Changes in Tax Rates
• E. Tax Losses
  • 1. Carryback of tax losses
  • 2. Carryforward of tax losses
• F. Measurement: No Discounting for Time Value of Money
• G. Presentation and Disclosure
  • 1. Presentation and disclosure of income tax expense
  • 2. Presentation and disclosure of income tax assets and liabilities
• H. Substantive Differences between Relevant IFRS and ASPE
• I. Summary
• J. References
• K. Glossary
• L. Problems
• M. Mini-Cases

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Chapter 17: Pensions and Other Employee Future Benefits

• A. Introduction
• B. Nature of Pension Plans
  • 1. Defined contribution plans
  • 2. Defined benefit plans
• C. Accounting for Defined Contribution Plans
• D. Accounting for Defined Benefit Plans
  • 1. What to account for in defined benefit plans
    • a. Current service cost
    • b. Interest cost
    • c. Expected income from plan assets
    • d. Amortization of past service costs
    • e. Amortization of actuarial gains and losses—The corridor approach
  • 2. Implementing pension accounting for defined benefit plans
  • 3. Presentation and disclosure
• E. Other Issues
  • 1. Settlements and curtailments
  • 2. Multi-employer plans
  • 3. Other long-term employee benefits
• F. Substantive Differences between Relevant IFRS and ASPE
• G. Appendix: Worksheet Approach for Pension Accounting
• H. Summary
• I. References
• J. Glossary
• K. Problems
• L. Mini-Cases

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Chapter 18: Accounting for Leases

• A. Introduction
• B. Economics of Leasing
• C. Classifying and Accounting for Operating and Finance Leases
  • 1. Lease classification
  • 2. Supporting indicators for lease classification
  • 3. Accounting for finance and operating leases
  • 4. Preference for finance or operating lease treatment
  • 5. Rationale for supporting indicators relating to lease term and present value
  • 6. Basic numerical example
    • a. Lease classification
    • b. Recording the lease at inception
    • c. Recording the lease during the lease term
    • d. Accounting at the end of the lease
  • 7. Additional considerations for lease classification on lessor's books under ASPE
• D. Other Issues
  • 1. Residual values—Guaranteed and unguaranteed
  • 2. Inclusion of bargain purchase options in minimum lease payments
  • 3. Interest rate used in present value calculations
  • 4. Cash flows to be included in present value calculations
    • a. Determining lease pricing
    • b. Classifying a lease as finance or operating
    • c. For amounts in lease amortization schedules
  • 5. Third-party guarantees: An example of rules avoidance
  • 6. Sale-leasebacks
• E. Presentation and Disclosure
  • 1. Current/non-current classification of lease liability or lease receivables
  • 2. Disclosures
• F. Substantive Differences between Relevant IFRS and ASPE
• G. Standards in Transition
• H. Summary
• I. References
• J. Glossary
• K. Problems
• L. Mini-Cases

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Chapter 19: Statement of Cash Flows

• A. Introduction
• B. Presentation of the Statement of Cash Flows
  • 1. Cash and cash equivalents defined
  • 2. Classifying cash flows
    • a. Operating activities
    • b. Investing activities
    • c. Financing activities
    • d. Cash flows with classification options
    • e. Non-cash transactions
  • 3. Format of the statement of cash flows
    • a. Illustrative example
    • b. Direct and indirect methods of reporting cash flows from operations
• C. Preparing the Statement of Cash Flows
  • 1. Sources of information
  • 2. The process—Indirect method
    • a. When are adjustments required?
    • b. The indirect method described
    • c. The indirect method illustrated—Example 1
    • d. The indirect method illustrated—Example 2
  • 3. The process—Direct method
    • a. The direct method described
    • b. Schedule of cash provided by operating activities using the direct method—Example 1
    • c. Schedule of cash provided by operating activities using the direct method—Example 2
  • 4. Effects of specific items on the statement of cash flows
    • a. Accounts receivable—Allowance for doubtful accounts
    • b. Discontinued operations
    • c. Discounts and premiums on bonds and other financial instruments
    • d. Held-for-trading investments not designated as cash equivalents—Unrealized gains and losses
    • e. Income taxes—Classification
    • f. Income taxes—Current and deferred
    • g. Investments in associates
    • h. Other comprehensive income
    • i. Stock splits and dividends
    • j. Treasury shares
  • 5. Putting it all together: A comprehensive example
• D. Presentation and Disclosure
• E. Substantive Difference between IFRS and ASPE
• F. Summary
• G. References
• H. Glossary
• I. Problems
• J. Mini-Cases

Appendix: Time Value of Money

Appendix: TI BAII Plus and Excel Tutorial

Glossary

Index

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