What's New?

The Fifteenth Edition expands our emphasis on student learning and improves upon a teaching and learning package that instructors and students have rated the highest in customer satisfaction. Based on extensive reviews, focus groups, and interactions with other intermediate accounting instructors and students, we have developed a number of new pedagogical features and content changes, designed both to help students learn more effectively and to answer the changing needs of the course.

Evolving Issues

As we continue to strive to reflect the constant changes in the accounting environment, we have added a new feature to the Fifteenth Edition, Evolving Issues, which highlight and discuss areas in which the profession may be encountering controversy or nearing resolution. Our hope is that these high-interest boxes will increase student engagement, as well as serve as classroom discussion points. For another source of high-interest material, see the What Do the Numbers Mean? boxes, most of which are new to this edition.

Demonstration Problems

We understand that students often struggle to apply accounting concepts to realistic business situations. As a result, we include a new Demonstration Problem before the end-of-chapter problem material, to serve as a model to help students with their homework assignments.

Updated IFRS Insights Content

We have updated the end-of-chapter section, IFRS Insights, throughout the textbook. In addition, in the Relevant Facts section, we now present Similarities as well as Differences between GAAP and IFRS to increase student understanding.

Major Content Revisions

In response to the changing environment, we have significantly revised several chapters.

Chapter 2 Conceptual Framework for Financial Reporting

• New footnote material on the FASB's additional guidance related to the use of fair value in financial statements.
• Updated discussion plus added an illustration on the five steps of revenue recognition.
• Revised Constraints section, as now only cost constraint is included in the conceptual framework.

Chapter 4 Income Statement and Related Information

• Revised Format of the Income Statement section, adding discussion on the intermediate components of the income statement and presenting the multiple-step before the single-step format to reflect current practice.
• Revised Reporting Irregular Items section, to broaden focus on irregular and unusual items. Updated discussion throughout as well as added new material on noncontrolling interest.
• Updated Comprehensive Income discussion, to reflect the most recent accounting standards.
• New illustration showing and explaining the revised income statement sections.

Chapter 18 Revenue Recognition

• We anticipate a new FASB ruling on the revenue recognition principle. As a result, please see the book's companion website, at www.wiley.com/college/kieso, for the latest information as well as the availability of an updated, replacement chapter.

Chapter 23 Statement of Cash Flows

• Reorganized chapter, to present the indirect method through preparation of the statement of cash flows first, followed by the discussion of the direct method as well as the advantages and disadvantages of both methods.
• New Evolving Issue, “Direct versus Indirect Controversy,” on the arguments in favor of each method.

See the next two pages for a complete list of content revisions by chapter.