Accounting is the most employable, sought-after major for 2009, according to entry-level job site CollegeGrad.com. One reason for this interest is found in the statement by former Secretary of the Treasury and Economic Advisor to the President, Lawrence Summers. He noted that the single-most important innovation shaping our capital markets was the idea of generally accepted accounting principles (GAAP). We agree with Mr. Summers. Relevant and reliable financial information is a necessity for viable capital markets. Without it, our markets would be chaotic, and our standard of living would decrease.
This textbook is the market leader in providing the tools needed to understand what GAAP is and how it is applied in practice. Mastery of this material will be invaluable to you in whatever field you select.
Through many editions, this textbook has continued to reflect the constant changes taking place in the GAAP environment. This edition continues this tradition, which has become even more significant as the financial reporting environment is exploding with major change. Here are three areas of major importance that are now incorporated extensively into this edition of the text.
Learning GAAP used to be a daunting task, as it is comprised of many standards that vary in form, completeness, and structure. Fortunately, the profession has recently developed the Financial Accounting Standards Board Codification (often referred to as the Codification). This Codification provides in one place all the GAAP related to a given topic. This textbook is the first to incorporate this Codification—it will make learning GAAP easier and more interesting!
As mentioned above, the most important innovation shaping our capital markets was the idea of U.S. GAAP. It might be said that it would be even better if we had one common set of accounting rules for the whole world, which will make it easier for international investors to compare the financial results of companies from different countries. That is happening quickly as U.S. GAAP and international GAAP are quickly converging toward one set of international accounting standards (International Financial Reporting Standards, IFRS) to be used by all companies. And you have the chance to be on the ground floor as we develop for you the similarities and differences in the two systems that ultimately will be one.
The FASB believes that fair value information is more relevant to users than historical cost. As a result, there is more information that is being reported on this basis, and even more will occur in the future. The financial press is full of articles discussing how financial institutions must fair value their assets, which has led to massive losses during the recent credit crisis. In addition, additional insight into the reliability related to fair values is being addressed and disclosed to help investors make important capital allocation decisions. As a result, we devote a considerable amount of material that discusses and illustrates fair value concepts in this edition.
We are excited about the 13th Edition of this text, which we believe successfully integrates the changing dimensions of accounting. In this edition, a more comprehensive set of financial reporting tools are provided, to help you understand the fundamentals of financial reporting and to better prepare you for your career in accounting and business.
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.
In response to the changing environment, we have significantly revised several chapters.
Chapter 1 has a new section on the Financial Accounting Standards Board Codification (referred to as the Codification). The Codification provides in one place all the authoritative literature related to a particular topic. For individuals (like you) attempting to learn GAAP, the Codification will be invaluable. We provide references to the Codification throughout this textbook, using a numbering system.
Chapter 2 has new material on fair value accounting and reporting. GAAP has increasingly called for measurements of fair value in the financial statements. The FASB believes that fair value information is more relevant to users than historical cost. As a result, GAAP is changing rapidly in this area. We integrate fair values throughout the chapters, but extensive discussion can be found in Chapters 2, 5, 6, 7, 10, 11, and 17.
Chapter 7 has a new appendix related to impairment of receivables. This appendix illustrates the accounting and reporting issues faced by many companies as a result of the recent credit crisis.
Chapter 16 has now incorporated a discussion of restricted stock, which has exploded in popularity. The advantages of using restricted stock are developed and the unique accounting issues addressed.
Chapter 20 has been completely revised to incorporate the FASB's recent standard on postretirement benefits (this material was previously provided in the Update to the 12th Edition).
Chapter 22 related to accounting changes has been revised. An additional example of how to account for and report an accounting change is provided to help students better understand the related concepts.
Further, we have integrated changes related to use of the Codification and the addition of Convergence Corner material to most chapters.
In addition to the revised appendices for Chapters 14 (Troubled Debt), 17 (Derivatives), and 24 (International Accounting), we also developed two new appendices: accounting for the impairment of receivables (Chapter 7) and reporting fair value measurements (Chapter 17).
We have continued and enhanced many of the features of the 12th Edition of Intermediate Accounting, including the following.
At the start of each chapter, we have updated and introduced new chapter opening vignettes to provide an even better real-world context that helps motivate student interest in the chapter topic. Also, throughout the chapters, the "What Do the Numbers Mean?" boxed inserts also provide real-world extensions of the material presented in the text.
In addition, Appendix 5B contains the 2007 annual report of The Procter & Gamble Company (P&G). The book's companion website contains the 2007 annual reports of The Coca-Cola Company and of PepsiCo, Inc. Problems in the Using Your Judgment section involve study of the P&G annual report or comparison of the annual reports of The Coca-Cola Company and PepsiCo. Also, links to many real-company financial reports appear in the company database at the Gateway to the Profession portal.
Accounting continually changes as its environment changes; an up-to-date book is therefore a necessity. As in past editions, we have strived to make this edition the most up-to-date and accurate textbook available. For the 13th Edition, we added an additional round of accuracy checking.
Having a basic understanding of international accounting is becoming ever more important as the profession moves toward convergence of GAAP and international standards. Thus, in addition to the Convergence Corner pages discussed earlier, we continue to include marginal International Insights, marked with the icon shown here, which we updated throughout to reflect changes in international accounting. These notes describe or compare iGAAP standards and accounting practices with U.S. GAAP. This feature helps students understand that other countries sometimes use different recognition and measurement principles to report financial information. In addition, Appendix 24B on international accounting, introduced in the 12th Edition, has been revised and updated. Finally, we use this same icon to designate the new international Questions that we added to many of the chapters.
We also have continued our efforts to keep the topic coverage of Intermediate Accounting in line with the way instructors are currently teaching the course. Accordingly, we have moved some optional topics into chapter-end appendices, and we have omitted altogether some topics that formerly were covered in appendices. Often, these omitted topics have been moved to the Gateway to the Profession portal. Details are listed in the specific content changes on pages xiii–xv and in the list of portal content on pages xviii–xix. We have continued efforts to maintain the readability of the text, following the thorough editorial review of the 12th Edition.
Our study of the intermediate accounting course indicates the importance of the end-of-chapter Exercises for teaching and practicing important accounting concepts. In the 12th Edition, therefore, we have prepared an additional set of exercises. These B Exercises are again available at the Gateway to the Profession portal. (Solutions are available at the instructor's portion of the website.) Also, in the 13th Edition, a new Review and Analysis exercise at the book's companion website gives an additional opportunity for students to review the accounting techniques and analysis behind each chapter topic.
We have revised and updated the Using Your Judgment section at the end of each chapter. Elements included in this section include the following:
A Financial Reporting Problem, featuring The Procter & Gamble Company.
A Comparative Analysis Case, featuring The Coca-Cola Company and PepsiCo, Inc., that asks students to compare and contrast the financial reporting for these two companies.
A Financial Statement Analysis Case that asks students to use the information in published accounting reports to conduct financial analysis.
An International Reporting Case that explores differences in reporting by international companies.
A Professional Research: FASB Codification case that gives students practice conducting authoritative research using the FASB Codification research system.
A call-out to Professional Simulations, newly revised for this edition, that model the computerized CPA exam and can be accessed at the Gateway to the Profession portal.
The Using Your Judgment assignments are designed to help develop students' critical thinking, analytical, and research skills.
As described above, we have added Codification references and exercises in every chapter, and the addition of Convergence Corner material to most chapters. We have also added several new end-of-chapter Questions that focus on international accounting.
The following list outlines the content revisions and improvements made in chapters of the 13th Edition.
New chapter opening story about the need to reevaluate the U.S. financial reporting system and a new International Insight.
Deleted the section on the GASB.
New section on FASB Codification.
New section on international accounting standards.
New Convergence Corner about international financial reporting.
Three new Questions on international accounting.
New chapter opening story about definitional issues involved in developing a conceptual framework and two new International Insights.
Revised section on measurement principles, to include fair value.
New discussion of fair value and illustration of the fair value hierarchy.
Revised section on expense recognition principle.
Deleted two "What Do the Numbers Mean?" boxes to streamline chapter.
New Convergence Corner on the conceptual framework.
Three new end-of-chapter international Questions.
Added illustration to show post-closing trial balance.
Deleted section on inventory and cost of goods sold (LO 8).
New Convergence Corner on accounting information systems.
Three new international Questions.
Revised chapter opening story.
New Convergence Corner about the income statement.
Four new international Questions.
Revised section on fair values.
Updated several "What Do the Numbers Mean?" boxes.
Added free cash flow formula illustration.
New Convergence Corner about the balance sheet and statement of cash flows.
Four new international Questions.
Revised discussion regarding application of time value of money concepts.
Revised the "What Do the Numbers Mean?" box on interest rates.
Moved Appendix 6A on using financial calculators to book's companion website.
Moved management and control of cash discussion to Appendix 7A.
Moved and expanded cash equivalents material.
Expanded valuation of notes receivable section.
New "What Do the Numbers Mean?" box on economic consequences of write-offs.
New "What Do the Numbers Mean?" box on loans receivable.
New Convergence Corner.
New end-of-chapter appendix (LO 11) and related homework material on impairments of receivables.
Three new international Questions.
Revised chapter opening story.
Revised inventory cost flow section.
Added inventory cost flow illustration.
Added a "What Do the Numbers Mean?" box on dollar-value LIFO.
New Convergence Corner on inventories.
Four new international Questions.
Updated chapter opening story.
Revised discussion of valuation of property, plant, and equipment relating to fair value.
New discussion on accrued project costs.
Added two International Insight and Underlying Concepts notes.
New footnote on percentage depletion.
Deleted section on discovery value.
New Convergence Corner on property, plant, and equipment.
Four new international Questions.
New chapter opening story.
Revised "What Do the Numbers Mean?" box on goodwill impairments.
Revised paragraphs on goodwill.
Revised paragraphs on bargain purchases.
New Convergence Corner.
Four new international Questions.
New Financial Statement Analysis case.
Updated various footnotes and excerpts from real financial statements.
Moved Appendix 13A (computation of employees' bonuses) to book's companion website.
New Financial Statement Analysis case.
New "What Do the Numbers Mean?" box about how to read bond listings and relationship of interest rates and bond maturity to bond pricing.
Revised "What Do the Numbers Mean?" box about recent increase in downgraded debt ratings.
Added Convergence Corner on liabilities.
Revised Appendix 14A on troubled debt. (Some of that discussion, and related end-of-chapter material, was moved to Appendix 7B.)
Four new international Questions.
New chapter opening story about trends on international stock exchanges.
Updated "What Do the Numbers Mean?" box on class B stock.
Updated Illustration 15-3, on stock buybacks.
Expanded footnote about recent price increases of dividend-paying stocks.
Replaced example of columnar format for statement of stockholders' equity.
Added Convergence Corner on stockholders' equity.
Three new international Questions.
Revised chapter opening story; added 2 graphs.
Added new Illustration 16-3, which shows recent changes in stock-option compensation expense and growth of restricted-stock compensation expense.
Discussion of restricted-stock compensation moved from Appendix 16A into body of chapter.
Revised Illustration 16-5 to show restricted-stock activity.
New Convergence Corner.
Four new international Questions.
One new Brief Exercise (BE16-7), Exercise (E16-14), and Problem (P16-4) on restricted stock.
New section (LO 5) on the fair value option.
In "Other Reporting Issues" section, moved impairment of value to precede reclassification adjustments.
Updated the financial statement presentation of investments section.
Added a Learning Objective specifically focused on reclassification adjustments.
Added illustration showing disclosure of impairment assessment, for Caterpillar.
New Convergence Corner.
In Appendix 17A, revised material on provisions for disclosing derivative securities.
Added new Appendix 17C, "Fair Value Measurements and Disclosures."
Added five Questions (three of which are international Questions).
New Exercises 19, 20, and 21, on fair value measurement and fair value option.
New and revised Problems relating to Appendix 17A (P17-13 through P17-18).
Expanded chapter opening story.
New International Insights on IASB/FASB project on revenue recognition.
New Convergence Corner.
New international Questions 25 through 27.
Expanded chapter opening story
Updated illustration of temporary differences for the fair value option.
New International Insight.
Updated "What Do the Numbers Mean?" box on tax shelters.
Updated and enhanced tax note disclosure for PepsiCo.
New Convergence Corner.
Four new international Questions.
Expanded chapter opening story
Updated statistics on pension plan use.
International Insights on iGAAP pension reporting.
Updated "What do the Numbers Mean?" box on funded status of pension plans.
New Convergence Corner.
Four new international Questions.
Revised and expanded chapter opening story.
New Illustration 21-1, on what assets companies lease.
Revised data/graph in "What Do the Numbers Mean?" box on off-balance-sheet financing.
New International Insight on use of term "substantially all" (with regard to recovery of investment test).
New "What Do the Numbers Mean?" box, "Are You Liable?"
Added mention of losses suffered by auto companies as a result of declines in residual value.
Updated lease disclosures of Tasty Baking Co. and Hewlett-Packard.
Added Convergence Corner on leasing.
Four new international Questions.
New chapter opening story on restatements.
Reorganized discussion of retrospective accounting changes with an additional illustration.
Updated "What Do the Numbers Mean?" box on class-action suits.
Added Convergence Corner on accounting changes.
Four new international Questions.
Updated the "What Do the Numbers Mean?" box "Pumping Up Cash," to include discussion of securitization of receivables by Federated Department Stores.
New International Insight.
Convergence Corner about statement of cash flows.
Four new international Questions.
Expanded chapter opening story
Discussion of recent pronouncements on subsequent events and going concern.
New International Insights on iGAAP for small- and medium-sized enterprises.
Updated accounting policy and MD&A disclosures.
Updated "What Do the Numbers Mean?" box on importance of footnote disclosures.
Updated discussion of auditor-related disclosures.
Updated discussion for developments related to Internet reporting and XBRL.
New Convergence Corner.
Updated Appendix 24B to reflect international accounting developments.
Three new international Questions.
At the end of each chapter, we have provided a comprehensive set of review and homework material. This section consists of Questions, Brief Exercises, Exercises, Problems, and short Concepts for Analysis exercises. These materials are followed by the Using Your Judgment section, described earlier (see page xii). For this edition, we have updated the names, dates, and values of nearly all of these end-of-chapter materials. All of the assignment materials have been class-tested and/or triple-checked for accuracy and clarity.
The Questions are designed primarily for review, self-testing, and classroom discussion purposes, as well as for homework assignments. Typically a Brief Exercise covers one topic, and an Exercise covers one or two topics. The Problems are designed to develop a professional level of achievement and are more challenging and time-consuming to solve than the Exercises. In the 13th Edition, the Brief Exercises, Exercises, and Problems are classified by learning objective number. All Brief Exercises and Exercises and selected Problems are available in WileyPLUS with automatic grading capability. The Concepts for Analysis generally require discussion, as opposed to quantitative solutions. They are intended to confront the student with situations calling for conceptual analysis and the exercise of judgment in identifying issues and problems and in evaluating alternatives.
Probably no more than one-fourth of the total Exercise, Problem, and Concepts for Analysis material must be used to cover the subject matter adequately. Consequently, problem assignments may be varied from year to year without repetition. As noted earlier, a set of B Exercises is available at the book's companion website, to provide an even wider assortment of exercises from which to choose.
WileyPLUS is a suite of resources that contains online homework, with access to an online version of the text, plus all of the elements of the Gateway to the Profession portal. WileyPLUS gives you the technology to create an environment where students reach their full potential and experience academic success. Instructor resources include a wealth of presentation and preparation tools, easy-to-navigate assignment and assessment tools, and a complete system to administer and manage your course exactly as you wish. In addition, a premium version of WileyPLUS is available, which will include the Rockford Practice Set and Excel Working Papers.
WileyPLUS is built around the activities you regularly perform:
Prepare and present class presentations using relevant Wiley resources such as PowerPoint™ slides, image galleries, animations, and other WileyPLUS materials. You can also upload your own resources or web pages to use in conjunction with Wiley materials.
Create assignments by choosing from end-of-chapter exercises, selected problems, and test bank questions organized by chapter, study objective, level of difficulty, and source—or add your own questions. WileyPLUS automatically grades students' homework and quizzes, and records the results in your gradebook.
Offer context-sensitive help to students, 24/7. When you assign homework or quizzes, you decide if and when students get access to hints, solutions, or answers where appropriate. Or they can be linked to relevant sections of their complete, online text for additional help whenever and wherever they need it most.
Track student progress. You can analyze students' results and assess their level of understanding on an individual and class level using the WileyPLUS gradebook, and you can export data to your own personal gradebook.
Seamlessly integrate all of the rich WileyPLUS content and resources with the power and convenience of your WebCT course—with a single sign-on.
In addition to the classroom presentation tools, the homework management system, and the online version of the text, WileyPLUS offers additional rich content on the book's companion website and in the Gateway to the Profession portal.
The book's companion website, at www.wiley.com/college/kieso (with separate areas for instructors and for students), has been completely revamped. At this website, students can access the following resources.
A B Set of Additional Exercises, which provide additional practice opportunities for students (solutions available to instructors).
Self-Study Tests and Additional Self-Tests. Each chapter on the Gateway to the Profession portal includes two sets of self-tests, to allow students to check their understanding of key concepts from the chapter. These are automatically graded.
A complete Glossary of all the key terms used in the text is provided, in alphabetical order, as well as Wiley's Flashcard technology for drill and practice. Page numbers show where these key terms appear in the text.
A new Review and Analysis Exercise, with Solution, designed to help students understand the principles and analysis associated with various accounting practices.
Accounting in Action, a continuing problem, provides students a real-world context in which to apply the concepts they are learning in the textbook.
Research cases, based on Wall Street Journal and other popular press articles.
A full version of the Professional Simulation for each chapter of the text.
Financial statements for The Procter & Gamble Company, The Coca-Cola Company, and PepsiCo.
The Gateway to the Profession portal includes the Analyst's Toolkit, the Professional Toolkit, and the Student Toolkit, whose content is described below.
Tools in the Analyst's Toolkit consist of the following items.
Database of Real Companies. Links to more than 20 annual reports of well-known companies, including three international companies, are provided at the Gateway to the Profession portal. Instructors can use these annual reports in a variety of ways. For example, they can use them to illustrate different presentations of financial information or to compare note disclosures across companies. In addition, instructors can use these reports to analyze a company's financial condition and compare its prospects with those of other companies in the same industry. Assignment material provides some examples of different types of analysis that students can perform. Each of the companies in the database of real companies is identified by a Web address to facilitate the gathering of additional information, if desired.
Additional Enrichment Material. An online chapter on Financial Statement Analysis is provided at the portal, along with related assignment material. This chapter can also be used in conjunction with the database of annual reports of real companies.
Spreadsheet Tools. Present value templates are provided. These templates can be used to solve time value of money problems.
Additional Internet Links. A number of useful links related to financial analysis are provided to expand expertise in analyzing real-world reporting.
Consistent with expanding beyond technical accounting knowledge, the Gateway to the Profession materials emphasize certain skills necessary to become a successful accountant or financial manager. The following materials will help students develop needed professional skills.
Writing Materials. A primer on professional communications gives students a framework for writing professional materials. This primer discusses issues such as the top-ten writing problems, strategies for rewriting, how to do revisions, and tips on clarity. This primer has been class-tested and is effective in helping students enhance their writing skills.
Group-Work Materials. Recent evaluations of accounting education have identified the need to develop more skills in group problem solving. The Gateway to the Profession portal provides a second primer dealing with the role that work-groups play in organizations. Information is included on what makes a successful group, how you can participate effectively in the group, and do's and don'ts of group formation.
Ethics. The Professional Toolkit contains expanded materials on the role of ethics in the profession, including references to speeches and articles on ethics in accounting, codes of ethics for major professional bodies, and examples and additional case studies on ethics.
Career Professional Spotlights. Every student should have a good understanding of the profession he or she is entering. Career vignettes on the Gateway to the Profession portal indicate the types of work that accountants do. Other aspects of the spotlights on careers are included at the Gateway to the Profession to help students make successful career choices. These include important links to websites that can provide useful career information to facilitate the student's efforts in this area.
Also included at the Gateway to the Profession are features that help students process and understand the course materials. They are:
Interactive Tutorials. To help students better understand some of the more difficult topics in intermediate accounting, we have developed a number of interactive tutorials that provide expanded discussion and explanation in a visual and narrative context. Topics addressed are the accounting cycle; inventory methods, including dollar-value LIFO; depreciation and impairment of long-lived assets; and interest capitalization.
These tutorials are for the benefit of the student and should require no use of class time on the part of instructors.
Expanded Discussion and Illustrations. The Expanded Discussion section provides additional topics not covered in depth in the textbook. The Gateway to the Profession gives the flexibility to enrich or expand the course by discussion of additional topics such as those listed below. Topics included, with appropriate chapter linkage, are as follows.
Discussion of accounting for changing prices.
Presentation of worksheet using the periodic inventory method.
Specialized journals and methods of processing accounting data.
Tutorial on the accounting cycle.
Present-value–based measurements, including an expanded discussion of financial calculators and spreadsheet tools for solving present-value problems.
Discussion of how a four-column bank reconciliation (the proof of cash) can be used for control purposes.
Expanded example, with accounting entries, of transfers of receivables without recourse.
Tutorial on the accounting for bad debts and on transfer of receivables.
Tutorial on inventory cost flow assumptions.
Tutorial on LIFO issues, including dollar-value LIFO.
Tutorial on interest capitalization.
Discussion of lesser-used depreciation methods, such as the retirement and replacement methods.
Tutorial on depreciation methods.
Tutorial on impairments.
Expanded discussion on valuing goodwill.
Expanded discussion on property taxes.
Expanded discussion on computation of employee bonuses.
Expanded discussion on the par value method for treasury stock.
Expanded discussion on quasi-reorganizations.
Comprehensive earnings per share illustration.
Illustration of accounting entries for transfers of investment securities.
Expanded discussion of special issues related to investments.
Discussion of the conceptual aspects of interperiod tax allocation, including the deferred and net of tax methods.
Discussion of accounting for intraperiod tax allocations, with examples.
Discussion of real estate leases and leveraged leases.
Discussion of the T-account method for preparing a statement of cash flows, with a detailed example.
Discussion of accounting for changing prices, both for general and specific price-level changes.
Financial analysis primer.
In summary, the Gateway to the Profession portal is a comprehensive complement to the 13th Edition of Intermediate Accounting, providing new materials as well as a new way to communicate those materials.
Other teaching and learning aids to supplement the textbook are described below.
The following teaching aids are available to support instructors using the 13th Edition.
Solutions Manual, Vols. 1 and 2. The Solutions Manual provides answers to all end-of-chapter questions, brief exercises, exercises, problems, and case materials. Classification tables categorize solutions by topic, and the new solutions manual also categorizes solutions by textbook learning objective. The estimated time to complete exercises, problems, and cases is provided.
Test Bank: Vols. 1 and 2. The 13th Edition Test Bank contains over 500 new testing questions. Exercises, problems, true/false, multiple choice, and conceptual short-answer questions help instructors test students' knowledge and communication skills. All questions are now classified by learning outcomes, including AACSB, AICPA, and IMA professional standards.
Algorithmic Computerized Test Bank. The new algorithmic computerized test bank allows instructors to assign printed test bank questions or, alternatively, the same questions that are populated with randomly generated names and data. They can also generate a report detailing the learning outcomes addressed in an assigned test.
Instructor's Manual, Vols. 1 and 2. The Instructor's Manual contains lecture outlines, chapter reviews, sample syllabi, printed teaching transparency masters, and much more.
Solutions Transparencies, Vols. 1 and 2. These acetate transparencies contain solutions to textbook end-of-chapter material. The transparencies contain large, bold type for classroom presentation.
PowerPoint™ Presentations. The PowerPoint™ presentations are designed to enhance classroom presentation of chapter topics and examples. The 13th Edition templates now have a new design with review questions and many examples illustrating textbook content.
Teaching Transparencies. These four-color acetates provide illustrations of key concepts for classroom viewing.
Solutions to Rockford Practice Set and Excel Workbook Templates. Available for download from the book's companion website.
Instructor's Resource CD. The Instructor's Resource CD contains electronic versions of the Instructor's Manual, Solutions Manual, Test Bank, computerized Test Bank, PowerPoint™ presentations, and other instructor resources.
Course Management Resources. Course content cartridges are available from both WebCT and Blackboard.
The CPA Connection
This booklet provides instructors with information about the computerized Certified Public Account (CPA) exam. It offers knowledge about the changes in the exam and gives instructors ideas to assist their students in practicing the types of skills needed to pass the Financial Accounting and Reporting section of the exam. Many of the ideas and tips included in the booklet are directly linked to this textbook.
Presents ideas and testing formats that instructors may choose to incorporate into their intermediate accounting classes.
Should be viewed as a reference source, from which instructors can easily select and use information that fits into their classroom situation.
Will be supplemented by a newsletter, published periodically.
Student Study Guide, Vols. 1 and 2. Each chapter of the Study Guide contains a chapter review, chapter outline, and a glossary of key terms. Demonstration problems, multiple-choice, true/false, matching, and other exercises are included.
Problem-Solving Survival Guide, Vols. 1 and 2. This study guide contains exercises and problems that help students develop their intermediate accounting problem-solving skills. Explanations assist in the approach, set-up, and completion of accounting problems. Tips alert students to common pitfalls and misconceptions.
Working Papers, Vols. 1 and 2. The working papers are printed templates that can help students correctly format their textbook accounting solutions. Working paper templates are available for all end-of-chapter brief exercises, exercises, problems, and cases.
Excel Working Papers, Vols. 1 and 2. The Excel Working Papers are Excel templates that students can use to correctly format their textbook accounting solutions. Working paper templates are available for all end-of-chapter brief exercises, exercises, problems, and cases.
Online Solving Problems Using Excel Workbook. The online Excel Workbook and accompanying Excel templates allow students to complete select end-of-chapter exercises and problems identified by a spreadsheet icon in the margin of the textbook. A useful introduction to Excel, the workbook and spreadsheets also enhance students' accounting skills.
Rockford Corporation: An Accounting Practice Set. This practice set helps students review the accounting cycle and the preparation of financial statements.
Rockford Corporation: A Computerized Accounting Practice Set. The computerized Rockford practice set is a general ledger software version of the printed practice set.
We thank the many users of our first 12 editions who contributed to the revision through their comments and instructive criticism. Special thanks are extended to the focus group participants and the primary reviewers of and contributors to our 13th Edition manuscript.
We also thank other colleagues who provided helpful criticism and made valuable suggestions as members of focus groups, survey participants, or as adopters and reviewers of previous editions.
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Barbara Kren
University of Wisconsin—Milwaukee
Steve Lafave
Augsburg College
Ellen Landgraf
Loyola University, Chicago
Tom Largay
Thomas College
David B. Law
Youngstown State University
Henry LeClerc
Suffolk Community College—Selden Campus
Patsy Lee
University of Texas—Arlington
Lydia Leporte
Tidewater Community College
Timothy Lindquist
University of Northern Iowa
Ellen Lippman
University of Portland
Barbara Lippincott
University of Tampa
Gary Luoma
University of Southern California
Matt Magilke
University of Utah
Daphne Main
University of New Orleans
Mostafa Maksy
Northeastern Illinois University
Danny Matthews
Midwestern State University
Noel McKeon
Florida Community College
Robert J. Matthews
New Jersey City University
Alan Mayer-Sommer
Georgetown University
Robert Milbrath
University of Houston
James Miller
Gannon University
John Mills
University of Nevada—Reno
Joan Monnin-Callahan
University of Cincinnati
Michael Motes
University of Maryland University College
Mohamed E. Moustafa
California State University—Long Beach
R.D. Nair
University of Wisconsin—Madison
Ed Nathan
University of Houston
Siva Nathan
Georgia State University
Kermit Natho
Georgia State University
Joseph Nicassio
Westmoreland County Community College
Hugo Nurnberg
CUNY—Baruch
Ann O'Brien
University of Wisconsin—Madison
Anne Oppegard
Augustana College, SD
Patricia Parker
Columbus State Community College
Richard Parker
Olivet College
Obeau S. Persons
Rider University
Ray Pfeiffer
University of Massachusetts—Amherst
Alee Phillips
University of Kansas
Marlene Plumlee
University of Utah
Wing Poon
Montclair State University
Jay Price
Utah State University
Robert Rambo
University of New Orleans
Debbie Rankin
Lincoln University
MaryAnn Reynolds
Western Washington University
Vernon Richardson
University of Arkansas
Richard Riley
West Virginia University
Jeffrey D. Ritter
St. Norbert College
Paul (Jep) Robertson
Henderson State University
Steven Rock
University of Colorado
Larry Roman
Cuyahoga Community College
John Rossi
Moravian College
Bob Rouse
College of Charleston
Tim Ryan
Southern Illinois University
Victoria Rymer
University of Maryland
James Sander
Butler University
John Sander
University of Southern Maine
George Sanders
Western Washington University
Howard Shapiro
Eastern Washington University
Douglas Sharp
Wichita State University
Tim Shea
Foley and Lardner
Jerry Siebel
University of South Florida
Phil Siegel
Florida Atlantic University
John R. Simon
Northern Illinois University
Keith Smith
George Washington University
Pam Smith
Northern Illinois University
Douglas Smith
Samford University
Billy S. Soo
Boston College
Karen Squires
University of Tampa
Carlton D. Stolle
Texas A&M University
William Stout
University of Louisville
Pamela Stuerke
Case Western Reserve University
Ron Stunda
Birmingham Southern College
Eric Sussman
University of California, Los Angeles
Diane L. Tanner
University of North Florida
Gary Taylor
University of Alabama
Gary Testa
Brooklyn College
Lynn Thomas
Kansas State University
Paula B. Thomas
Middle Tennessee State University
Tom Tierney
University of Wisconsin—Madison
Elizabeth Venuti
Hofstra University
James D. Waddington, Jr.
Hawaii Pacific University
Dick Wasson
Southwestern College
Frank F. Weinberg
Golden Gate University
David Weiner
University of San Francisco
Jeannie Welsh
LaSalle University
Shari H. Wescott
Houston Baptist University
Michael Willenborg
University of Connecticut
William H. Wilson
Oregon Health University
Kenneth Wooling
Hampton University
Joni Young
University of New Mexico
Paul Zarowin
New York University
Steve Zeff
Rice University
Special thanks to Kurt Pany, Arizona State University, for his input on auditor disclosure issues, and to Stephen A. Zeff, Rice University, for his comments on international accounting.
In addition, we thank the following colleagues who contributed to several of the unique features of this edition.
Gateway to the Profession Portal and Codification Cases
Jack Cathey
University of North Carolina—Charlotte
Michelle Ephraim
Worcester Polytechnic Institute
Erik Frederickson
Madison, Wisconsin
Jason Hart
Deloitte LLP, Milwaukee
Frank Heflin
Florida State University
Mike Katte
SC Johnson, Racine, WI
Kelly Krieg
E & Y, Milwaukee
Jeremy Kunicki
Walgreens
Andrew Prewitt
KPMG, Chicago
Jeff Seymour
KPMG, Minneapolis
Matt Sullivan
Deloitte LLP, Milwaukee
Matt Tutaj
Deloitte LLP, Chicago
Jen Vaughn
PricewaterhouseCoopers, Chicago
Erin Viel
PricewaterhouseCoopers, Milwaukee
"Working in Teams" Material
Edward Wertheim
Northeastern University
Ancillary Authors, Contributors, Proofers, and Accuracy Checkers
LuAnn Bean
Florida Institute of Technology
Mary Ann Benson
John C. Borke
University of Wisconsin—Platteville
Jack Cathey
University of North Carolina—Charlotte
Robert Derstine
Villanova University
Jim Emig
Villanova University
Larry Falcetto
Emporia State University
Tom Forehand
State University of New York—New Paltz
Coby Harmon
University of California, Santa Barbara
Marilyn F. Hunt
Douglas W. Kieso
Aurora University
Mark Kohlbeck
Florida Atlantic University
Barbara Muller
Arizona State University
Kevin McNelis
New Mexico State University
Jill Misuraca
Central Connecticut State University
Tom Noland
University of Houston
John Plouffe
California State University—Los Angeles
Paul (Jep) Robertson
Henderson State University
Rex A. Schildhouse
University of Phoenix—San Diego
Lynn Stallworth
Dick D. Wasson
Southwestern College, San Diego University
WileyPLUS Developers and Reviewers
James Mraz
Jan Mardon
Melanie Yon
Perspectives and "From Classroom to Career" Interviews
Stuart Weiss, Stuart Weiss Business Writing, Inc., Portland, Oregon
Practicing Accountants and Business Executives
From the fields of corporate and public accounting, we owe thanks to the following practitioners for their technical advice and for consenting to interviews.
Ron Bernard
NFL Enterprises
Mike Crooch
FASB (retired)
Tracy Golden
Deloitte LLP
John Gribble
PricewaterhouseCoopers
Darien Griffin
S.C. Johnson & Son Wax
Michael Lehman
Sun Microsystems, Inc.
Tom Linsmeier
FASB
Michele Lippert
Evoke.com
Sue McGrath
Vision Capital Management
David Miniken
Sweeney Conrad
Robert Sack
University of Virginia
Clare Schulte
Deloitte LLP
Willie Sutton
Mutual Community Savings Bank, Durham, NC
Lynn Turner
Glass, Lewis, LLP
Gary Valenzuela
Yahoo!
Rachel Woods
PricewaterhouseCoopers
Arthur Wyatt
Arthur Anderson & Co., and the University of Illinois—Urbana
Finally, we appreciate the exemplary support and professional commitment given us by the development, marketing, production, and editorial staffs of John Wiley & Sons, including the following: Susan Elbe, Chris DeJohn, Jeff Howard, Amy Scholz, Alison Stanley, Ed Brislin, Allie Morris, Vanessa Ahrens, Jeanine Furino, Harry Nolan, Anna Melhorn, and Lenore Belton. Thanks, too, to Terry Ann Kremer for her editorial assistance, Suzanne Ingrao for her production work, to Jane Shifflet and the management at Aptara®, Inc. for their work on the textbook, and to Amanda Zagnoli and the management and staff at Elm Street Publishing Services for their work on the solutions manual.
Special thanks to development editor Ann Torbert, for her contributions to the 13th Edition and many previous editions of Intermediate Accounting.
We also appreciate the cooperation of the American Institute of Certified Public Accountants and the Financial Accounting Standards Board in permitting us to quote from their pronouncements. We thank The Procter & Gamble Company for permitting us to use its 2007 annual report for our specimen financial statements. We also acknowledge permission from the American Institute of Certified Public Accountants, the Institute of Management Accountants, and the Institute of Internal Auditors to adapt and use material from the Uniform CPA Examinations, the CMA Examinations, and the CIA Examination, respectively.
If this book helps teachers instill in their students an appreciation for the challenges, worth, and limitations of accounting, if it encourages students to evaluate critically and understand financial accounting theory and practice, and if it prepares students for advanced study, professional examinations, and the successful and ethical pursuit of their careers in accounting or business, then we will have attained our objectives.
Suggestions and comments from users of this book will be appreciated. Please feel free to e-mail any one of us at [email protected].
Donald E. Kieso
Somonauk, Illinois
Jerry J. Weygandt
Madison, Wisconsin
Terry D. Warfield
Madison, Wisconsin