The newly updated fast-reference problem solver

The Complete CPA Desk Reference--the convenient,
comprehensive reference professionals have relied on for nearly
fifteen years--is now updated in a new Fifth Edition to give
today's busy executives and accountants the helpful information
they need in a quick-reference format. Packed with practical
techniques and rules of thumb for solving day-to-day accounting
issues, the new edition helps you quickly pinpoint what to look
for, what to watch out for, what to do, and how to do it. In an
easy-to-use Q & A format, it covers such useful topics as IFRS
standards, internal control over financial reporting financial
measures, ratios, and procedures.

* Includes complete coverage of the Risk Assessment Auditing
Standards and Standards of the PCAOB

* Incorporates Accounting Standards Codification (ASC) throughout
the book

* Adds new chapters on professional ethics and quality controls
for CPA firms

* Features a new section on International Financial Reporting
Standards (IFRS)

Packed with checklists, samples, and worked-out solutions to a
variety of accounting problems, this reliable reference tool is a
powerful companion for the complex, ever-changing world of
accounting.

Nick Dauber, MS, CPA, is the author of four books and has served as book reviewer for major book publishers and has had articles published in many professional accounting journals. He is Instructor of Auditing and Taxation at Queens College of the City University of New York and has been in professional practice for over twenty-five years.

Jae K. Shim, PHD, CPA, a prolific accounting and finance expert, has over fifty college and professional books to his credit. He is Professor of Accounting and Finance at California State University, Long Beach, and is CEO of Delta Consulting Company, a financial consulting and training firm.

Joel G. Siegel, PHD, CPA, is the author of over fifty books and has written hundreds of articles for accounting and financial journals. Siegel was a member of the audit staff of Coopers & Lybrand and has consulted many organizations, including IT&T, Citicorp, and Person-Wolinsky CPA Review. He is Professor of Accounting at Queens College of the City University of New York.

The Complete CPA Desk Referencethe convenient, comprehensive reference professionals have relied on for nearly fifteen yearsis now updated in a new Fifth Edition to give today's busy executives and accountants the helpful information they need in a quick-reference format. Packed with practical techniques and rules of thumb for solving day-to-day accounting issues, the new edition helps you quickly pinpoint what to look for, what to watch out for, what to do, and how to do it. In an easy-to-use Q & A format, it covers such useful topics as IFRS standards, internal control over financial reporting financial measures, ratios, and procedures.

• Includes complete coverage of the Risk Assessment Auditing Standards and Standards of the PCAOB
• Incorporates Accounting Standards Codification (ASC) throughout the book
• Adds new chapters on professional ethics and quality controls for CPA firms
• Features a new section on International Financial Reporting Standards (IFRS)

Packed with checklists, samples, and worked-out solutions to a variety of accounting problems, this reliable reference tool is a powerful companion for the complex, ever-changing world of accounting.

About the Authors xxi

Acknowledgments xxiii

Introduction xxv

Part I Commonly Used Generally Accepted Accounting Principles

Chapter 1 Financial Statement Reporting: The Income Statement 3

Income Statement Format 4

Comprehensive Income 4

Extraordinary Items 5

Nonrecurring Items 6

Discontinued Operations 6

Revenue Recognition 8

Other Revenue Considerations 18

Multiple Deliverables 18

Software Revenue Recognition 19

Research and Development Costs 20

Advertising Costs 23

Restructuring Charges 23

Other Expense Considerations 23

Earnings per Share 23

Chapter 2 Financial Statement Reporting: The Balance Sheet 33

Assets 33

Liabilities 57

Fair Value Measurements 71

Fair Value Option for Financial Assets and Financial Liabilities 73

Stockholders' Equity 77

Chapter 3 Financial Statement Reporting: Statement of Cash Flows and Other Disclosures 91

Statement of Cash Flows 91

Interim Reporting 103

Personal Financial Statements 107

Incorporation of a Business 110

Partnerships 110

Chapter 4 Accounting and Disclosures 113

Hierarchy of GAAP 113

FASB Accounting Standards Codification 113

Accounting Changes 114

Prior-Period Adjustments 121

Disclosure of Accounting Policies 122

Development-Stage Companies 123

Troubled Debt Restructuring 124

Segmental Reporting 127

Imputing Interest on Notes 133

Accounting for Futures Contracts 135

Oil- and Gas-Producing Companies 138

Chapter 5 Key Financial Accounting Areas 139

Consolidations 139

Business Combinations 143

Investments in Securities 148

Leases 156

Pension Plans 170

Other Postretirement Benefits 183

Income Tax Accounting 184

Foreign Currency Translation and Transactions 189

U.S. GAAP versus IFRS 200

Part II Analyzing Financial Statements

Chapter 6 Financial Statement Analysis 219

Introduction 219

Horizontal and Vertical Analysis 221

Balance Sheet Analysis 222

Income Statement Analysis 239

Bankruptcy Prediction 249

Liquidation Value 251

Part III Managerial Accounting Applications

Chapter 7 Appraising Segmental Performance 255

The What and Why of Responsibility Accounting 255

Cost Center Performance and Standard Costs 258

Flexible Budgets and Performance Reports 276

Profit Centers and Segmented Reporting 278

Profit Variance Analysis 281

Single-Product Firms 282

Multiproduct Firms 282

Managerial Planning and Decision Making 287

How to Measure the Performance of Investment Centers 288

Investment Decisions under ROI and RI 292

More on Economic Value Added 293

Corporate Balanced Scorecard 295

How to Price Goods and Services Transferred 296

Alternative Transfer Pricing Schemes 297

Budgeting and Financial Planning 299

Chapter 8 Analysis of Projects, Proposals, and Special Situations 309

CostVolumeProfit and Breakeven Analysis 309

Short-Term, Nonroutine Decisions 320

Theory of Constraints 327

Life-Cycle Costs and Target Costing 327

Activity-Based Costing 331

Just-in-Time and Total Quality Management 334

Taguchi Method of Quality Control 338

Backflush Costing 339<...