advanced accounting 10th ed. - p. fischer, et al., (cengage, 2009)

Advanced Accounting
Paul Marcus Fischer, PhD, CPA
Jerry Leer Professor of Accounting
University of Wisconsin, Milwaukee
William James Taylor, PhD, CPA, CVA
Professor Emeritus of Accounting
University of Wisconsin, Milwaukee
Rita Hartung Cheng, PhD, CPA
Professor of Accounting
University of Wisconsin, Milwaukee
10e
Advanced Accounting, 10
th
Edition
Paul M. Fischer, William J. Taylor, Rita H. Cheng
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Advanced Leadership
INNOVATION
The tenth edition of Advanced Accounting by Paul Fischer, William Taylor, and Rita Cheng
raises the standard in accounting education. Providing the most innovative, up-to-date, and
comprehensive coverage of advanced financial accounting topics on the market today, the tenth
edition incorporates pedagogically strong elements throughout. The end result is a valuable and
useful resource for both the present and the future. Fischer/Taylor/Cheng’s Advanced Accounting
offers the learner the ability to understand and apply new knowledge like no other advanced
accounting text available. Leading the way are these unique, innovative, and helpful features:
^
Understanding and applying the new consolidations rules—Includes full integration of
new procedures required by FASB 141R and 160 released in December 2007. The
major changes include:
^
All subsidiary accounts are now adjusted to full fair value whenever control is achieved.
The noncontrolling interest is now adjusted to fair value.
^
Instead of allocating the available amount to fixed assets in a bargain purchase, all
accounts are recorded at full fair value and the bargain results in a gain.
^

Changes in the parent’s ownership interest are treated as equity transactions with no
impact on income.
^
Changes in the subsidiary’s equity are treated as equity transactions with no impact on
income.
^
Excelling with ease—An easy-to-follow Excel
Ò
tutorial and convenient electronic
working papers available on the text’s Web site (academic.cengage.com/accounting/
fischer):
^
This unique tutorial teaches a step-by-step process for completing consolidations
worksheets in an Excel-based environment. The tutorial makes it possible to master
consolidations worksheets more quickly.
^
The tutorial guides the student through the creation of Excel worksheets. Each chapter of
the tutorial adds the consolidations processes to parallel those presented in Chapters 1–6
of the text.
^
The electronic working papers in Excel format provide students with the basic worksheet
structure for selected assignments throughout the text. These assignments are identified in
the text by the icon shown here.
^
Comprehending through consistency—Common coding for the worksheets:
^
All consolidations worksheets use a common coding for the eliminations and
adjustments. A complete listing of the codes is presented on the inside of the front cover.
Students are now able to quickly recall worksheet adjustments as they move from one
chapter to the next.

^
Within the chapter narrative, the worksheet eliminations and adjustments are shown in
journal entry form and are referenced using the same coding. This provides consistent
reinforcement of the consolidations process and aids students in their understanding of
the worksheet procedures. An example follows:
PREFACE
(CY1) Eliminate current-year equity income:
Subsidiary Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Investment in Company S. . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
(EL) Eliminate 80% of subsidiary equity against investment in
subsidiary account:
Common Stock ($10 par), Company S . . . . . . . . . . . . . . . . . . . 80,000
Retained Earnings, January 1, 20X1, Company S . . . . . . . . . . 56,000
Investment in Company S. . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,000
(IS) Eliminate intercompany merchandise sales:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
^
The same codes are continued in the Excel tutorial and the worksheet solutions.
^
Taming a tough topic—Cov erage of derivatives and related accounting issues in a module:
^
A comprehensive module deals with derivative instruments and related accounting issues.
This module, located just before Chapter 10, sets forth the basic characteristics of derivative
financial instruments and explains the features of common types of derivatives. Accounting
for derivatives held as an investment and as a part of a hedging strategy is discussed. Although
covering the derivatives module prior to Chapter 10 is recommended, Chapter 10 can be
taught without coverage of the derivatives module.
^
Fair value and cash flow hedges are clearly defined, and the special accounting given such

hedges is set forth in a clear and concise manner. Options, futures, and interest rate swaps
are used to demonstrate accounting for fair value hedges and cash flow hedges.
^
New explanations, examples, and end-of-chapter problems have been added to help
simplify this complex topic.
^
The more complex complications that are associated with the use of forward contracts are
introduced in the module and then fully addressed in Chapter 10. Thus, Chapter 10’s
discussion of hedging foreign currency transactions is more streamlined and less cumbersome.
^
Most of the chapter’s discussion of hedging foreign currency transactions involves the use
of forward contracts. The focus is on the use of such contracts to hedge foreign currency
transactions, commitments, and forecasted transactions.
^
Accounting for change—Coverage of new government reporting model and estate tax
planning:
^
Comprehensive coverage of governmental standards through GASB Statement No. 52,
including the historic changes to the reporting model.
^
Government and not-for-profit chapters include material for CPA exam preparation.
^
Chapters are designed for use in advanced accounting courses or in standalone
governmental and not-for-profit courses.
^
Measuring student mastery—Learning Objectives:
^
Each chapter begins with a list of measurable learning objectives, which are repeated in
the margin near the related coverage.
^

The exercises and problems at the end of the chapter indicate the specific learning
objectives that they reinforce. This helpful indicator, along with the assignment titles,
provides a quick reference for both student and instructor.
^
Communicating the core content—Reflection:
^
Concluding every main section is a reflection on the core information contained in that section.
^
These reflections provide students with a clear picture of the key points they should grasp
and give them a helpful tool for quick review.
1
OBJECTIVE
Explain why transactions
between members of a con-
solidated firm should not
be reflected in the consoli-
dated financial statements.
iv PREFACE
REFLECTION

The combining of the statements of a parent and its subsidiaries into consolidated
statements is required when parent ownership exceeds 50% of the controlled firm’s
shares.

Consolidation is required for any company that is controlled, even in cases where less
than 50% of the company’s shares is owned by the parent.
^
Thinking it through—Understanding the Issues:
^
These questions at the end of the chapter emphasize and reinforce the core main issues of

the chapter. An example follows:
UNDERSTANDING THE ISSUES
1. A parent company paid $400,000 for a 100% interest in a subsidiary. At the end
of the first year, the subsidiary reported net income of $30,000 and paid $5,000
in dividends. The price paid reflected understated equipment of $50,000, which
will be amortized over 10 years. What would be the subsidiary income reported
on the parent’s unconsolidated income statement, and what would the parent’s
investment balance be at the end of the first year under each of these methods?
a. The simple equity method
b. The sophisticated equity method
c. The cost method
2. What is meant by date alignment? Does it exist on the consolidated worksheet
under the following methods, and if not, how is it created prior to elimination
of the investment account under each of these methods?
a. The simple equity method
b. The sophisticated equity method
c. The cost method
^
They encourage students to think in greater depth about the topics and expand their
reasoning skills. Discussion skills are also developed through use of the questions as
springboards for class interaction.
THEORY BLENDED WITH APPLICATION
With a strong tradition of combining sound theoretical foundations with a hands-on, learn-by-
example approach, the tenth edition continues its prominent leadership position in advanced
accounting classrooms across the countr y. The authors build on Advanced Accounting’s clear
writing style, comprehensive coverage, and focus on conceptual understanding.
Realizing that students reap the greatest benefits when they can visualize the application of theo-
ries, Advanced Accounting closely links theory and practice by providing examples through relevant
exhibits and tables that are common to real-world accounting. When students can visualize the con-
cept being discussed and apply it directly to an example, their understanding greatly improves. This

focus on conceptual understanding makes even the most complex topics approachable.
vPREFACE
Assignments are clearly defined. ‘‘Understanding the Issues’’ questions are used to reinforce
theory, and exercises are short, focused applications of specific topics in the chapter. These exer-
cises are very helpful when students use them as preparations for class presentation. The book’s
problems—more comprehensive than the exercises—often combine topics and are designed to
work well as after-class assignments. For group projects, the cases found in the business combi-
nations chapters provide an innovative way to blend theoretical and numerical analysis.
ENHANCED COVERAGE
Advanced Accounting reflects changes in accounting procedures and standards while improving
on those features that aid in student comprehension.
^
Comprehensive coverage of the impact of the latest FASB statements, including:
^
The majority of the material on business combinations has been rewritten to fully
incorporate FASB Statement Nos. 141R and 160 published in December 2007.
^
Discussion of the FASB’s convergence project, designed to move toward a common set of
international accounting standards, is included.
^
Updated coverage of governmental and not-for-profit accounting:
^
Chapter 15 has been updated to incorporate the latest guidance on accounting for
revenues of nonexchange transactions, post-retirement benefits other than pensions, and
investments.
^
The authors have included a chapter (Chapter 17) to focus on the new reporting model
for state and local governments. Two new end-of-chapter comprehensive problems have
been included, with electronic working papers and supporting schedules, to aid in
understanding the complexities of the GASB reporting model.

^
Chapters 18 and 19 have been updated to better present this challenging area of accounting.
Since many of the not-for-profit organizations also have government counterparts and
GASB standards prohibit governments from applying the FASB not-for-profit standards,
the text separates the discussion of colleges and universities, health-care organizations,
voluntary health and welfare organizations, and other not-for-profit organizations.
^
Comprehensive coverage of the impact of the latest GASB statements, including:
^
A complete explanation and presentation of the comprehensive annual financial report
(CAFR) provides students with a strong basis for understanding the reporting
requirements as set forth in GASB Statement Nos. 34, 35, and 37.
^
The authors have provided a comprehensive presentation of revenue recognition
requirements for nonexchange transactions, found in GASB Statement Nos. 33 and 36.
The note disclosure requirements in GASB Statement No. 38 are described.
^
Coverage of additional guidance on post-retirement benefits other than pensions (GASB
Statement Nos. 43 and 45), valuation of intangibles and fixed assets held as endowments
(GASB Statement Nos. 51 and 52), and content on the statistical section (GASB
Statement No. 44) are included.
FLEXIBILITY
The book’s flexible coverage of topics allows for professors to teach their course at their own
pace and in their preferred order. There are no dependencies between major sections of the text
except that coverage of consolidations should precede multinational accounting if one is to
understand accounting for foreign subsidiaries. It is also advisable that students master the mod-
ule on derivatives before advancing to the chapter on foreign currency transactions. The book
vi PREFACE
contains enough coverage to fill two advanced courses, but when only one semester is available,
many professors find it ideal to cover the first four to six chapters in business combinations.

The text is divided into the following major topics:
Business Combinations—Basic Topics (Chapters 1–6)
Chapter 1 demonstrates the FASB rules, under Statement Nos. 141R and 142, for assigning the
cost of an acquired company to its assets and liabilities. Goodwill impairment replaces amorti-
zation and is fully explained.
Chapters 2 through 5 cover the basics of preparing a consolidated income statement and
balance sheet. In 1977, we introduced two schedules that have been much appreciated by stu-
dents and faculty alike—the Determination and Distribution of Excess Schedule and Income
Distribution Schedule. The determination and distribution schedule (quickly termed the
D&D schedule by students) analyzes the difference between the fair value of the acquired com-
pany and the underlying equity of the subsidiary. The D&D schedule has been reconfigured to
revalue the entire company, including the noncontrolling interest. It provides a check figure for
all subsequent years’ worksheets, details all information for the distribution of differences
between book and fair values, and reveals all data for the amortization of the differences. The
schedule provides rules for all types of acquisition situations. The income distribution schedule
(known as the IDS) is a set of T accounts that distributes income between the noncontrolling
and controlling interests. It also provides a useful check function to ensure that all intercom-
pany eliminations are properly accounted for. These chapters give the student all topics needed
for the CPA Exam. (For easy reference, the text contains a callout in the margin, as shown here,
that ties the narrative to the worksheets. In addition, the related narrative pages are indicated in
the upper right side of each worksheet. This allows the reader to quickly locate important
explanations.)
With regard to the alternative worksheet methods and why we follow the approaches we do,
consider the method used to record the investment in the subsidiary’s and the parent’s books.
There are two key points of general agreement. The first is that it doesn’t really matter which
method is used, since the investment account is eliminated. Second, when the course is over, a
student should know how to handle each method: simple equity, full (we call it sophisticated)
equity, and cost. The real issue is which method is the easiest one to learn first. We believe the
winner is simple equity, since it is totally symmetric with the equity accounts of the subsidiary.
It simplifies elimination of subsidiary equity against the investment account. Every change in

subsidiary equity is reflected, on a pro rata basis, in the parent’s investment account. Thus, the
simple equity method becomes the mainline method of the text. We teach the student to con-
vert investments maintained under the cost method to the simple equity method. In practice,
most firms and the majority of the problems in the text use the cost method. This means that
the simple equity method is employed to solve problems that begin as either simple equity or
cost method problems.
We also cover the sophisticated equity method, which amortizes the excess of cost or book
value through the investment account. This method should also adjust for intercompany profits
through the investment account. The method is cumbersome because it requires the student to
deal with amortizations of excess and intercompany profits in the investment account before
getting to the consolidated worksheet, which is designed to handle these topics. This means
teaching consolidating procedures without the benefit of a worksheet. We cover the method
after the student is proficient with a worksheet and the other methods. Thorough understand-
ing of the sophisticated method is important so that it can be applied to influential investments
that are not consolidated. ( This is covered in Special Appendix 2.)
Another major concern among advanced accounting professors has to do with the work-
sheet style used. There are three choices: the horizontal (trial balance) format, the vertical
(stacked) method, and the balance sheet only. Again, we do cover all three, but the horizontal
format is our main method. Horizontal is by far the most appealing to students. They have used
it in both introductory and intermediate accounting. It is also the most likely method to be
found in practice. On this basis, we use it initially to develop all topics. We cover the vertical
format but not until the student is proficient with the horizontal format. There is no difference
in the elimination procedures; only the worksheet logistics differ. It takes only one problem
assignment to teach the students this approach so they are prepared for its possible appearance
Worksheet 3-1: page 144
viiPREFACE
on the CPA Exam. The balance-sheet-only format has no reason to exist other than its use as a
CPA Exam testing shortcut. We cover it in an appendix.
Chapter 6 may be more essential for those entering practice than it is for the CPA Exam. It
contains cash flow for consolidated firms, consolidated earnings per share, and taxation issues.

Support schedules guide the worksheet procedures for consolidated companies, which are taxed
as separate entities. Taxation is the most difficult application of consolidation procedures. Every
intercompany transaction is a tax allocation issue. Teaching the tax allocation issues with every
topic as it is introduced is very confusing to students. We prefer to have the students fully
understand worksheet procedures without taxes and then introduce taxes.
Business Combinations—Specialized Topics (Chapters 7 and 8)
These chapters deal with topics that occasionally surface in practice and have seldom appeared
on the CPA Exam. Studying these chapters perfects the students’ understanding of consolida-
tions and stockholders’ equity accounting, thus affording a valuable experience. Chapter 7
deals with piecemeal acquisitions of an investment in a subsidiary, sale of the parent’s invest-
ment, and the impact of preferred stock in the subsidiary’s equity structure. Chapter 8 deals
with the impact of subsidiary equity transactions including stock dividends, sale of common
stock shares, and subsidiary reacquisitions of shares. The chapter also considers indirect or
three-tier ownership structures and reciprocal holdings where the subsidiary owns parent
shares. Both Chapters 7 and 8 are radically revised as a result of new procedures set forth in
FASB Statement No. 160. Following Chapter 8, a Special Appendix explores accounting for
leveraged buyouts.
Accounting for equity method investments is located in a new Special Appendix 2, follow-
ing the one on leveraged buyouts. The methods used for consolidations are adapted to influen-
tial investments. The IDS schedule used to distribute consolidated net income is used to
calculate investment income.
Multinational Accounting and Other Reporting Concerns
(Chapters 9–11 and Module)
As business has developed beyond national boundaries, the discipline of accounting also has
evolved internationally. As our global economy develops, so, too, does the demand for reliable
and comparable financial information. Chapter 9 discusses the international accounting envi-
ronment and compares accounting principles among several countries. This comparison illus-
trates the need for accounting standards to be in harmony with each other. Approaches to the
harmonization of standards and the various organizations involved are identified.
The use of derivative financial instruments and the related accounting is a very complex sub-

ject that is discussed in a separate module. The principles set forth in FASB Statement Nos. 133
and 137 are set forth in a clear manner. The module may be used to support a standalone topic
dealing with derivatives or as a preface to the multinational chapter dealing with foreign cur-
rency transactions. Regardless of how one chooses to use the module, students will benefit from
an understanding of this important topic. The nature of derivatives is discussed along with a
more in-depth look at the common types of derivative instruments. The basic accounting for
derivatives held as an investment is illustrated. Options, futures, and interest rate swaps are used
for illustrative purposes. The accounting for derivatives that are designated as a hedge is illus-
trated for both fair value and cash flow hedges. More specifically, the use of a derivative to hedge
a recognized transaction (asset or liability), an unrecognized firm commitment, or a forecasted
transaction is discussed and illustrated. Throughout the module, illustrative entries and
graphics are used to improve the students’ understanding of this topic.
Chapter 10 discusses the accounting for transactions that are denominated or settled in a
foreign currency. Following this discussion, the hedging of such transactions with the use of for-
ward contracts is introduced. Hedging foreign currency recognized transactions, unrecognized
firm commitments, and forecasted transactions is discussed in order to illustrate the business
purpose and special accounting associated with such hedging strategies in an international set-
ting. The chapter is not overly complicated, given the fact that the concept of hedging and the
special accounting given hedges have already been discussed in a separate module on derivatives
and related accounting issues.
viii PREFACE
Chapter 11 demonstrates the remeasurement and/or translation of a foreign entity’s finan-
cial statements into a U.S. investor’s currency. Wherever possible, examples of footnote disclo-
sure relating to international accounting issues are presented.
The usefulness of financial information naturally increases if it is communicated on a timely
basis. Therefore, interim financial statements and reporting requirements are now widely
accepted. In Chapter 12, the concept of an interim period as an integral part of a larger annual
accounting period is set forth as a basis for explaining the specialized accounting principles of
interim reporting. Particular attention is paid to the determination of the interim income tax
provision including the tax implications of net operating losses. Chapter 12 also examines seg-

mental reporting and the various disclosure requirements. A worksheet format for developing
segmental data is used, and students are able to review the segmental footnote disclosure for a
large public company. The section on segmental reporting is based on the principles of account-
ing set forth in FASB Statement No. 131.
Accounting for Partnerships (Chapters 13 and 14)
Chapters 13 and 14 take students through the entire life cycle of a partnership, beginning with
formation and ending in liquidation. Although new forms of organization such as the limited
liability corporation are available, partnerships continue to be a common form of organization.
Practicing accountants must be aware of the characteristics of this form of organization and the
unique accounting principles. The accounting aspects of profit and loss agreements, changes in
the composition of partners (admissions and withdrawals), and partnership liquidations are
fully illustrated. The end-of-chapter material in this area focuses on evaluating various alterna-
tive strategies available to partners, for example, deciding whether it would be better to liquidate
a partnership or admit a new partner.
Governmental and Not-for-Profit Accounting (Chapters 15–19)
Chapters 15–19 provide comprehensive coverage of accounting and financial reporting of state
and local governments, colleges and universities, health-care entities, and not-for-profit organi-
zations. Since the ninth edition of this text was released, standards-setting bodies have issued
several accounting, auditing, and financial reporting standards that impact topics covered in
these chapters. This new edition discusses recent developments in state and local government
accounting and financial reporting, including the Governmental Accounting Standards Board’s
(GASB’s) financial reporting model (GASB Statement Nos. 34 and 35).
Chapter 15 covers the unique accounting and financial reporting issues of state and local
governments. This chapter has been updated to cover the basics of accounting and financial
reporting of the general fund and account groups. The chapter incorporates GASB guidance on
accounting for revenues and expenditures using a financial resources measurement focus and a
modified accrual basis of accounting. The unique ways of accounting for capital assets and
long-term debt are detailed.
Chapter 16 details accounting for the specialized funds of government, e.g., those estab-
lished to account for restricted operating resources, long-term construction projects or acquisi-

tion of major fixed assets, and servicing of principal and interest on long-term debt. The
chapter also covers the unique accounting for various trust funds, including permanent funds
and proprietary (business-type) funds. Accounting for pensions, post-retirement benefits other
than pensions, recognition of assets and liabilities and related disclosures arising from securities
lending transactions, accounting for certain investments at fair value, and accounting for landfill
operations are illustrated.
Chapter 17 presents the government’s basic financial statements required in the new report-
ing model. The unique features of the funds-based statements, which maintain the traditional
measurement focus and basis of accounting for both governmental and proprietary funds, and
the government-wide statements, which use the flow of economic resources measurement focus
and full accrual basis of accounting for both the government and proprietary activities, are
detailed. The chapter includes a discussion of the requirement for governments to report all
capital assets, including retroactive reporting of infrastructure assets. Detailed illustrations help
to clarify the requirements to report depreciation or use the modified approach. The chapter
contains a sample government-wide statement of net assets that reports governmental and
ixPREFACE
proprietary activities in separate columns and a program- or function-oriented statement of
activities. The requirements for the management’s discussion and analysis (MD&A) are high-
lighted. The tenth edition includes two new comprehensive end-of-chapter problems designed
to link theory to practice through the use of electronic working papers and supporting sched-
ules. Additional coverage surrounds key issues in governmental audit, including the single audit
requirements, from AICPA, OMB, and GAO authoritative sources.
Chapter 18 begins with an overall summary of the accounting and financial reporting stand-
ards as they apply to all not-for-profit organizations. Coverage of FASB Statement Nos. 116,
117, 124, and 136 is included. Expanded illustrations enable the student to better grasp the
unique requirements for revenue and expense recognition of not-for-profit organizations. Exter-
nal financial statements are illustrated without a funds structure. Since the FASB standards have
shifted financial reporting away from fund accounting, funds are viewed as internal control and
management tools throughout this chapter. The appendix to the chapter includes a discussion
of the fund structure traditionally used in not-for-profit organizations and illustrates financial

statements incorporating the funds.
Chapter 19 offers a complete description of accounting for private and governmental
universities and private and governmental health-care organizations. The concepts from
Chapters 15–18 are applied to college and university accounting. A comparison of the govern-
mental and nongovernmental reporting requirements and/or practices is highlighted to enable
the student to gain a better understanding of differences between them. Updated illustrations
and end-of-chapter materials are also designed to compare and contrast the government and
private-sector requirements.
Fiduciary Accounting (Chapters 20 and 21)
The role of estate planning and the use of trusts are important to many individuals and present
some unique accounting principles. The tax implications of estate planning are discussed so that
the student has a basic understanding of this area. Various accounting reports necessary for the
administration of an estate or trust are illustrated in Chapter 20. Current estate tax rates and
unified credit amounts are set forth in the chapter.
No business is immune from financial difficulty. Chapter 21 discusses various responses to
such difficulties, including troubled debt restructuring, quasi-reorganizations, corporate liqui-
dations, and corporate reorganizations.
UNPARALLELED SUPPORT
Supplementary Materials for the Instructor:
Instructor’s Resource CD (0-324-37908-0). The IRCD provides instructors with a convenient
and complete source of support materials. It contains all of the solutions manual files, the test
bank files (in Word and ExamView
Ò
), the solutions to the Excel
Ò
tutorial, and the PowerPoint
Ò
files.
Solutions Manual. This manual provides answers to all end-of-chapter ‘‘Understanding the
Issues’’ questions and solutions to all exercises, problems, and cases. The electronic files for this

ancillary can be found on the Instructor’s Resource CD and in the Instructor Resources section
of the text’s Web site (academic.cengage.com/accounting/fischer).
Test Bank. Consisting of a variety of multiple-choice questions and short problems and the
related solutions, this test bank had been newly updated and revised by Anne M. Oppegard of
Augustana College. The content includes testing questions for the text chapters and the deriva-
tives module. The test bank is available electronically in Word and ExamView
Ò
on the Instruc-
tor’s Resource CD.
PowerPoint
Ò
Slides. Teaching transparencies are available in electronic format on the Instruc-
tor’s Resource CD and in the Instructor Resources section of the text’s Web site.
x PREFACE
Dedicated Product Web Site (academic.cengage.com/accounting/fischer). The password-
protected Instructor Resources section of the text’s Web site contains:
^
Solutions Manual files, in Microsoft Word.
^
Test Bank files, in Microsoft Word and Excel.
^
PowerPoint
Ò
Presentations. Author-developed electronic slides are available to enrich
classroom teaching of concepts and practice. These were developed by Anne M. Oppegard
of Augustana College.
^
See below for the content of the Student Resources section.
Valuable Supplementary Materials for the Student:
Excel

Ò
Tutorial and Working Papers. Provided on the text’s Web site (academic.cengage.com/
accounting/fischer), this step-by-step tutorial carefully guides students as they learn how to set
up worksheets in Excel and apply their consolidations knowledge learned in Chapters 1–6 of
the text. In addition, Excel working papers for selected text problems are provided to assist stu-
dents in completing homework. These selected end-of-chapter assignments are identified in the
text by the icon shown here.
Dedicated Product Web Site (academic.cengage.com/accounting/fischer). The Student
Resources section of the text Web site contains:
^
Excel
Ò
Tutorial and Electronic Working Papers.
^
Check Figures. A list of helpful check figures to the end-of-chapter problems is provided.
^
City of Milwaukee Financial Statements. These statements provide a helpful reference for
coverage in the governmental chapters.
^
Learning Objectives. These are repeated from the text to serve as a study aid.
^
Chapter Quizzes.
^
Glossary.
^
Content Updates relevant to changes in FASB and GASB standards.
xiPREFACE
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Acknowledgments
In preparation for the new edition, the following individuals shared detailed ideas and sugges-

tions for changes and improvements, of which many have been implemented in this tenth edi-
tion text and supplements. We thank them all for their timely information.
Paul Sheldon Foote, California State University—Fullerton
Kevin J. Misenheimer, Gardner-Webb University
Georgia Saemann, University of Wisconsin—Milwaukee
Barbara Wheeling, Montana State University—Billings
Christian E. Wurst Jr., Temple University
We thank the following ancillary writers and verifiers for their conscientious effort to make sure
the support materials are accurate and tie closely to the text’s up-to-date content.
Writers:
Test Bank: Anne M. Oppegard (Augustana College)
PowerPoint: Anne M. Oppegard (Augustana College)
Web Quizzes: Sara Wilson
Verifiers:
Text and Solutions Manual: Sara Wilson
Test Bank: Dianne Feldman
Their patience in the revision process is greatly appreciated.
Finally, a special thank you goes to Carol Fischer (University of Wisconsin—Waukesha) for her
many hours of extensive, creative work on developing the Excel tutorial and working papers
materials. These products provide easy-to-follow assistance to students as they learn the work-
sheet process.
Paul Fischer
William Taylor
Rita Cheng
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About the Authors
Paul M. Fischer is the Jerry Leer Professor of Accounting and Accounting Area Chair at the
University of Wisconsin, Milwaukee. He teaches intermediate and advanced financial account-
ing and has received both the AMOCO Outstanding Professor Award and the School of Busi-
ness Administration Advisory Council Teaching Award. He also teaches continuing education

classes and provides executive training courses for several large corporations. He earned his
undergraduate accounting degree at Milwaukee and earned an MBA and Ph.D. at the Univer-
sity of Wisconsin, Madison. Dr. Fischer is a CPA and is a member of the American Institute of
CPAs, the Wisconsin Institute of CPAs, and the American Accounting Association. He is a past
president of the Midwest Region of the American Accounting Association. Dr. Fischer has pre-
viously authored Cost Accounting: Theory and Applications (with Frank), Financial Dimensions of
Marketing Management (with Crissy and Mossman), journal articles, and computer software.
He actively pursues research and consulting interests in the areas of leasing, pension accounting,
and business combinations.
William J. Taylor has primarily taught financial accounting and auditing at both the under-
graduate and graduate levels. In addition, he was involved in providing executive training
courses for several large corporations and through an executive MBA program. He has been rec-
ognized for his teaching excellence and has received both the AMOCO Outstanding Professor
Award and the School of Business Administration Advisory Council Teaching Award. He
earned his Ph.D. from Georgia State University and is a CPA and a CVA (Certified Valuation
Analyst). His professional experience includes working for Deloitte and Touche and Arthur
Andersen & Co. in their audit practices. His private consulting activities include business valua-
tions, litigation services, and issues affecting closely held businesses. Dr. Taylor is a member of
the American Institute of CPAs and the National Association of Certified Valuation Analysts.
He serves as a director and officer for a number of organizations.
Rita H. Cheng is Professor of Accounting at the University of Wisconsin, Milwaukee. She
teaches government and not-for-profit accounting and advanced financial accounting. She has
published numerous journal articles and technical reports and is often asked to speak on govern-
ment and not-for-profit accounting topics. She has been recognized for her teaching excellence
and is a recipient of the School of Business Administration Advisory Council Outstanding
Teaching Award. She earned her Ph.D. in Accounting from Temple University. She is a CPA
and a Certified Government Financial Manager. Dr. Cheng is actively involved in research
focusing on the quality of accounting and financial reporting by state and local governments
and the influence of accounting regulation on corporate business competitiveness. She is an
active member of the Government and Nonprofit Section of the American Accounting Associa-

tion and has served as the section’s president. She has also testified before the Governmental
Accounting Standards Board and coordinated the academic response to several proposed
standards.
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Brief Contents
Part 1
Combined Corporate Entities
and Consolidations
Chapter 1
Business Combinations: New Rules
for a Long-Standing Business Practice 3
Chapter 2
Consolidated Statements: Date of
Acquisition 57
Chapter 3
Consolidated Statements: Subsequent
to Acquisition 115
Chapter 4
Intercompany Transactions: Merchandise,
Plant Assets, and Notes 199
Chapter 5
Intercompany Transactions: Bonds
and Leases 261
Chapter 6
Cash Flow, EPS, and Taxation 321
Chapter 7
Special Issues in Accounting for an
Investment in a Subsidiary 371
Chapter 8
Subsidiary Equity Transactions; Indirect

and Mutual Holdings 431
Special Appendix 1
Leveraged Buyouts 481
Special Appendix 2
Equity Method for Unconsolidated
Investments 489
Part 2
Multinational Accounting and
Other Reporting Concerns
Chapter 9
The International Accounting Environment 503
Module
Derivatives and Related Accounting Issues 517
Chapter 10
Foreign Currency Transactions 557
Chapter 11
Translation of Foreign Financial
Statements 605
Chapter 12
Interim Reporting and Disclosures about
Segments of an Enterprise 669
Part 3
Partnerships
Chapter 13
Partnerships: Characteristics, Formation,
and Accounting for Activities 715
Chapter 14
Partnerships: Ownership Changes
and Liquidations 739
Part 4

Governmental and Not-for-Profit
Accounting
Chapter 15
Governmental Accounting: The General
Fund and the Account Groups 779
Chapter 16
Governmental Accounting: Other
Governmental Funds, Proprietary
Funds, and Fiduciary Funds 841
Chapter 17
Financial Reporting Issues 903
Chapter 18
Accounting for Private Not-for-Profit
Organizations 951
Chapter 19
Accounting for Not-for-Profit Colleges
and Universities and Health Care
Organizations 991
Part 5
Fiduciary Accounting
Chapter 20
Estates and Trusts: Their Nature
and the Accountant’s Role 1047
Chapter 21
Debt Restructuring, Corporate
Reorganizations, and Liquidations 1077
xviiBRIEF CONTENTS
Contents
Part 1
Combined Corporate Entities

and Consolidations
Chapter 1
Business Combinations: New Rules
for a Long-Standing Business Practice 3
Economic Advantages of Combinations 4
Tax Advantages of Combinations 5
Acquisition of Control 6
Accounting Ramifications of Control 7
Evolution of Accounting Methods 8
Applying the Acquisition Method 9
Valuation of Identifiable Assets and Liabilities 11
Applying the Acquisition Model 14 Recording
Changes in Value During Measurement Period 17
Recording Contingent Consideration 18 Accounting
for the Acquisition by the Acquiree 19
Tax Issues 20
Tax Loss Carryovers 20 Tax Values in an
Acquisition 22 Nontaxable Exchange 23
Required Disclosure 25
Goodwill Impairment 28
Allocating Goodwill to Reporting Units 28 Reporting
Unit Valuation Procedures 28 Frequency of
Impairment Testing 30 Impairment Testing in Later
Periods 31 Goodwill Impairment Loss in Later
Periods 31
Appendix: Estimating the Value of Goodwill 32
Chapter 2
Consolidated Statements: Date of
Acquisition 57
Levels of Investment 58

Function of Consolidated Statements 59
Criteria for Consolidated Statements 59
Techniques of Consolidation 60
Reviewing an Asset Acquisition 61 Consolidating a
Stock Acquisition 62
Adjustment of Subsidiary Accounts 63
Analysis of Complicated Purchases—100% Interest 64
Determination and Distribution of Excess
Schedule 66
Formal Balance Sheet 67 Bargain Purchase 67
Consolidating a Less than 100% Interest 71
Analysis of Complicated Purchase—Less Than 100%
Interest 72 Determination and Distribution of Excess
Schedule 73 Formal Balance Sheet 74 Adjustment
of Goodwill Applicable to NCI 75 Gain on Purchase
of Subsidiary 76 Valuation Schedule Strategy 78
Analysis with a Gain 79 Parent Exchanges Noncash
Assets for Controlling Interest 80
Preexisting Goodwill 81
Ownership of a Prior Noncontrolling
Interest 83
Push-Down Accounting 84
Appendix: Reverse Acquisition 85
Chapter 3
Consolidated Statements: Subsequent
to Acquisition 115
Accounting for the Investment
in a Subsidiary 116
Equity Method 116 Cost Method 117 Example of
the Equity and Cost Methods 117

Elimination Procedures 118
Effect of Simple Equity Method on
Consolidation 119 Effect of Cost Method on
Consolidation 124
Effect of Sophisticated Equity Method on
Consolidation 126
Determination of the Method Being Used 128
Complicated Purchase, Several Distributions
of Excess 128
Intraperiod Purchase Under the Simple Equity
Method 134
Intraperiod Purchase Under the Cost
Method 136
Summary: Worksheet Technique 136
Goodwill Impairment Losses 137
Appendix A: The Vertical Worksheet 138
Appendix B: Tax-Related Adjustments 139
Chapter 4
Intercompany Transactions: Merchandise,
Plant Assets, and Notes 199
Intercompany Merchandise Sales 200
No Intercompany Goods in Purchasing Company’s
Inventories 201 Intercompany Goods in Purchasing
Company’s Ending Inventory 203 Intercompany
xviii CONTENTS
Goods in Purchasing Company’s Beginning and Ending
Inventories 205 Eliminations for Periodic
Inventories 207 Effect of Lower-of-Cost-or-Market
Method on Inventory Profit 207 Losses on
Intercompany Sales 208

Intercompany Plant Asset Sales 208
Intercompany Sale of a Nondepreciable Asset 209
Intercompany Sale of a Depreciable Asset 210
Intercompany Long-Term Construction Contracts 213
Intercompany Debt 215
Sophisticated Equity Method:
Intercompany Transactions 217
Unrealized Profits of the Current Period 217
Unrealized Profits of Current and Prior Periods 218
Appendix: Intercompany Profit Eliminations
on the Vertical Worksheet 221
Chapter 5
Intercompany Transactions: Bonds
and Leases 261
Intercompany Investment in Bonds 261
Bonds Originally Issued at Face Value 262 Bonds Not
Originally Issued at Face Value 265 Purchase of Only a
Portion of the Bonds 266 Interest Method of
Amortization 267
Intercompany Leases 269
Operating Leases 269 Capitalized Leases 270
Intercompany Transactions Prior to Business
Combination 274
Appendix: Intercompany Leases With
Unguaranteed Residual Value 275
Chapter 6
Cash Flow, EPS, and Taxation 321
Consolidated Statement of Cash Flows 321
Cash Acquisition of Controlling Interest 321 Noncash
Acquisition of Controlling Interest 323 Adjustments

Resulting from Business Combinations 324
Preparation of Consolidated Statement of Cash Flows 325
Consolidated Earnings Per Share 329
Taxation of Consolidated Companies 333
Consolidated Tax Return 333 Complications Caused
by Goodwill 337 Separate Tax Returns 337
Complications Caused by Goodwill 343
Chapter 7
Special Issues in Accounting for an
Investment in a Subsidiary 371
Parent Acquisition of Stock Directly
from Subsidiary 371
Parent Purchase of Additional Subsidiary Shares 373
Sale of Parent’s Investment in Common Stock 377
Sale of Entire Investment 377 Sale of Portion of
Investment 380
Subsidiary Preferred Stock 385
Determination of Preferred Shareholders’ Claim on
Retained Earnings 385 Apportionment of Retained
Earnings 386 Parent Investment in Subsidiary
Preferred Stock 389
Appendix: Worksheet for a Consolidated
Balance Sheet 391
Investment Account 392 Merchandise Sales 392
Plant Asset Sales 392 Investment in Bonds 392
Leases 392 Illustration 393
Chapter 8
Subsidiary Equity Transactions; Indirect
and Mutual Holdings 431
Subsidiary Stock Dividends 431

Parent Using the Simple Equity Method 432
Parent Using the Sophisticated Equity Method 434
Parent Using the Cost Method 435
Subsidiary Sale of its Own Common Stock 436
Sale of Subsidiary Stock to Noncontrolling
Shareholders 436 Parent Purchase of Newly Issued
Subsidiary Stock 440
Subsidiary Purchase of its Own
Common Stock 442
Purchase of Shares as Treasury Stock 442
Resale of Shares Held in Treasury 443
Indirect Holdings 444
Level One Holding Acquired First 444
Level Two Holding Exists at Time of Parent’s
Purchase 448 Connecting Affiliates 449
Mutual Holdings 450
Treasury Stock Method 450 Stock Swap 453
Special Appendix 1
Leveraged Buyouts 481
Stock Valuation 481
Fair Value Block 481 Equity-Adjusted Cost
Block 482 Book Value Block 482 Acquisition
Meeting the 80% Monetary Consideration
Test 482 Acquisition Not Meeting the 80% Monetary
Consideration Test 484
Special Appendix 2
Equity Method for Unconsolidated
Investments 489
xixCONTENTS
Calculation of Equity Income 490

Amortization of Excesses 490 Intercompany
Transactions by Investee 491
Tax Effects of Equity Method 492
Unusual Equity Adjustments 493
Investee with Preferred Stock 494 Investee Stock
Transactions 494 Write-Down to Market Value 494
Zero Investment Balance 494 Intercompany Asset
Transactions by Investor 495 Intercompany Bond
Transactions by Investor 495 Gain or Loss of
Influence 496
Disclosure Requirements 496
Part 2
Multinational Accounting and
Other Reporting Concerns
Chapter 9
The International Accounting Environment 503
The Scope of International
Business Activities 504
The Emerging Needs for International Accounting 505
The Focus of International Accounting 505
Factors Influencing the Development of Accounting 506
Harmonization of Accounting Systems 507
The International Accounting Standards Board 508
The International Federation of Accountants 509
Convergence to International Accounting Standards 510
Other Issues of International Importance 514
Transfer-Pricing Issues 514 Differences in Tax
Systems 514
Module
Derivatives and Related Accounting Issues 517

Derivatives: Characteristics and Types 518
Characteristics of Derivatives 518 Common Types of
Derivatives 519 Summary of Derivative
Instruments 527
Accounting for Derivatives that are
Designated as a Hedge 528
Special Accounting for Fair Value Hedges 529 An
Example of a Fair Value—Inventory Transaction Hedge
Using a Futures Contract 531 An Example of a Fair
Value — Firm Commitment Hedge Using a Forward
Contract 533 An Example of a Fair Value—Hedge
against a Fixed Interest Notes Payable Using an Interest
Rate Swap 536 Special Accounting for Cash Flow
Hedges 538 An Example of a Cash Flow—Hedge
against a Forecasted Transaction Using an Option 540
An Example of a Cash Flow—Hedge against a Variable
Interest Notes Payable Using an Interest Rate Swap 543
Disclosures Regarding Derivative
Instruments and Hedging Activities 545
Chapter 10
Foreign Currency Transactions 557
The International Monetary System 558
Alternative International Monetary Systems 558
The Mechanics of Exchange Rates 559
Accounting for Foreign Currency
Transactions 562
Unsettled Foreign Currency Transactions 564
The Exposure to Foreign Currency Exchange
Risk and the use of Derivatives 565
Characteristics of Derivatives 566 Common Types of

Derivatives 567
Accounting for Derivatives that are
Designated as a Hedge 570
Special Accounting for Fair Value Hedges 571
Special Accounting for Cash Flow Hedges 572
Examples of the Accounting for Fair
Value Hedges 573
Hedging an Existing Foreign Currency Denominated
Asset or Liability 573 Special Hedging
Complications 579 Hedging an Identifiable Foreign
Currency Firm Commitment 580
Examples of the Accounting for Cash
Flow Hedges 585
Hedging a Foreign Currency Forecasted
Transaction 585 Summary of Hedging
Transactions 594 Disclosures Regarding Hedges of
Foreign Currency Exposure 596
Chapter 11
Translation of Foreign Financial
Statements 605
Statement of Financial Accounting
Standards No. 52 606
Functional Currency Identification 607 Objectives of
the Translation Process 610
Basic Translation Process: Functional
Currency to Reporting Currency 618
Demonstrating the Current Rate/Functional
Method 618 Consolidating the Foreign
Subsidiary 622 Gains and Losses Excluded from
Income 625 Unconsolidated Investments: Translation

for the Cost or Equity Method 627
xx CONTENTS
Remeasured Financial Statements: Foreign
Currency to Functional Currency 629
Books of Record Not Maintained in Functional
Currency 629 Remeasurement when Functional
Currency Is the Same as the Parent/Investor’s
Currency 631 Remeasurement and Subsequent
Translation when Functional Currency Is Not the
Same as the Parent/Investor’s Currency 635
Summary of Translation and Remeasurement
Methodologies 639
Chapter 12
Interim Reporting and Disclosures about
Segments of an Enterprise 669
Interim Reporting 669
Approaches to Reporting Interim Data 670
Accounting Principles Board Opinion
No. 28 670 Accounting for Income Taxes in Interim
Statements 674 Accounting for Discontinued
Operations 687 Accounting for a Change in
Accounting Principle 688 Disclosures of
Summarized Interim Data 689
Disclosures About Segments of
an Enterprise 690
Statement of Financial Accounting Standards No. 131 692
Part 3
Partnerships
Chapter 13
Partnerships: Characteristics, Formation,

and Accounting for Activities 715
Characteristics of a Partnership 715
Relationship of Partners 715 Legal Liability of a
Partnership 716 Underlying Equity Theories 716
Formation and Agreements 717 Acceptable
Accounting Principles 718 Partnership
Dissolution 718 Tax Considerations 718
Accounting for Partnership Activities 719
Contributions and Distributions of Capital 719
The Allocation or Division of Profits and Losses 721
Chapter 14
Partnerships: Ownership Changes
and Liquidations 739
Ownership Changes 740
Admission of a New Partner 740 Withdrawal of a
Partner 751
Partnership Liquidation 754
Liquidation Guidelines 754 Lump-Sum
Liquidations 757 Installment Liquidations 759
Part 4
Governmental and Not-for-Profit
Accounting
Chapter 15
Governmental Accounting: The General
Fund and the Account Groups 779
Commercial and Governmental Accounting:
A Comparison 780
History of Governmental Financial
Reporting 781
Organization and Processes of the FASB and the

GASB 782 Jurisdictions of the FASB and the
GASB 782 GASB Objectives of Financial
Reporting 784 Measurement Focus and Basis of
Accounting 785
Governmental Accounting Structure
of Funds 785
Governmental Funds 786 Accounting for Transactions
of Governmental Funds 786
Use of Budgetary Accounting 792
General Ledger Entries 792 Subsidiary Ledger
Entries 792
Overview of General Fund Procedures 793
Accounting for the General Fund—An Expanded
Example 796 Closing the General Fund 806
Financial Reports of the General Fund 807
Balance Sheet 807 Statement of Revenues,
Expenditures, and Changes in Fund Balances 807
Accounting for General Capital Assets
and General Long-Term Obligations 809
Accounting and Financial Reporting for General Capital
Assets 809 Accounting and Financial Reporting for
General Long-Term Debt 812
Review of Entries for the General Fund
and Account Groups 814
Appendix: Summary of Accounting
Principles 818
Principle 1—Accounting and Reporting
Capabilities 819 Principle 2—Fund Accounting
System 819 Principle 3—Types of Funds 819
Principle 4—Number of Funds 820

Principle 5—Reporting Capital Assets 820
Principle 6—Valuation of Capital Assets 820
xxiCONTENTS
Principle 7—Depreciation of Capital
Assets 820 Principle 8—Reporting Long-Term
Liabilities 820 Principle 9—Measurement Focus and
Basis of Accounting in the Basic Financial
Statements 820 Principle 10—Budgeting, Budgetary
Control, and Budgetary Reporting 821
Principle 11—Transfer, Revenue, Expenditure, and
Expense Account Classification 821
Principle 12—Common Terminology and
Classification 821 Principle 13—Annual Financial
Reports 821
Chapter 16
Governmental Accounting: Other
Governmental Funds, Proprietary
Funds, and Fiduciary Funds 841
Other Governmental Funds 841
Special Revenue Funds 841 Permanent Funds 844
Capital Projects Funds 845 Debt Service Funds 848
Proprietary Funds 857
Enterprise Funds 858 Internal Service Funds 865
Fiduciary Funds: Trust and Agency Funds 866
Private-Purpose Trust Funds 866 Investment Trust
Funds 868 Pension Trust Funds 868 Agency
Funds 871
Governmental Accounting—Interactions
among Funds 873
Chapter 17

Financial Reporting Issues 903
Annual Financial Reporting 903
Reporting Entity 905
Highlights and Illustrative Examples
of the New Reporting Model 906
Management’s Discussion and Analysis 906 Funds-
Based Statements 911 Government-Wide Financial
Statements 922 The Statement of Net Assets 922
The Statement of Activities 923 Converting Funds-
Based Statements to Government-Wide Statements 924
Reporting and Auditing Implementation
and Issues 928
Audits of State and Local Governments 928 The
Statistical Section 929 Other Financial Reporting
Issues 932
Chapter 18
Accounting for Private Not-for-Profit
Organizations 951
Not-for-Profit Organizations 952
Development of Accounting Principles 952
Accounting for Private Not-for-Profit
Organizations 953
Accounting for Revenues, Gains, and
Contributions 953 Accounting for
Expenses 956 Financial Statements 957
Accounting for Voluntary Health
and Welfare Organizations 958
Accounting Principles and Procedures 958 Public
Support 958 Revenues 960 Program and
Supporting Services Costs 961 Closing Entries 961

Financial Statements 962 Illustrative Transactions for a
Voluntary Health and Welfare Organization 963
The Budget 972
Summary 972
Appendix: Optional Fund Accounting
for Voluntary Health and Welfare
Organizations 973
VHWO Funds 973 Illustrative Funds-Based Financial
Statements for Voluntary Health and Welfare
Organizations 975
Chapter 19
Accounting for Not-for-Profit
Colleges and Universities and
Health Care Organizations 991
Accounting for Colleges and Universities
(Public and Private) 992
Funds 992 Accounting for Revenues 993
Accounting for Expenses 993 Accounting for
Contributions 994 Donor-Imposed Restrictions and
Reclassifications 994 University Accounting and
Financial Reporting within Existing Fund
Structure 995 Financial Statements 1004
Accounting for Providers of Health Care
Services—Governmental and Private 1010
Generally Accepted Accounting Principles 1011
Funds 1011 Classification of Assets and
Liabilities 1012 Classification of Revenues, Expenses,
Gains, and Losses 1012 Accounting for Donations/
Contributions Received 1015 Medical Malpractice
Claims 1016 Illustrative Entries 1017 Financial

Statements of a Private Health Care Provider 1021
Governmental Health Care Organizations 1022
Part 5
Fiduciary Accounting
Chapter 20
Estates and Trusts: Their Nature
and the Accountant’s Role 1047
xxii CONTENTS
The Role of Estate Planning 1047
Communicating through a Will 1048
Settling a Probate Estate 1048
Identifying the Probate Principal or Corpus of an
Estate 1048 Identifying Claims against the Probate
Estate 1050 Measurement of Estate
Income 1051 Summary of Items Affecting Estate
Principal and Income 1052 Distributions of
Property 1052 The Charge and Discharge
Statement 1055
Tax Implications of an Estate 1057
Estate Reduction with Gifts 1058 Federal Estate
Taxation 1059 Marital Deduction 1062 Valuation
of Assets Included in the Gross Estate 1063 Other
Taxes Affecting an Estate 1064
Trust Accounting Issues 1064
Financial Accounting for Trusts 1065
Chapter 21
Debt Restructuring, Corporate
Reorganizations, and Liquidations 1077
Relief Procedures not Requiring
Court Action 1078

Troubled Debt Restructurings 1078 Transfer of Assets
in Full Settlement 1079 Granting an Equity
Interest 1079 Modification of Terms 1079
Combination Restructurings 1080
Quasi-Reorganizations 1081 Corporate
Liquidations 1082
Solutions Available through the
Bankruptcy Code 1082
Commencement of a Bankruptcy Case 1083
Corporate Reorganizations—Chapter 11 1083
Corporate Liquidations—Chapter 7 1086
Preparation of the Statement of Affairs 1088
Preparation of Other Accounting Reports 1091
Index of APB, FASB, and GASB
Pronouncements 1107
Index 1141
xxiiiCONTENTS
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