SPICELAND | SEPE | NELSON | THOMAS xvii We received an incredible amount of feedback prior to writing the eighth edition of Intermediate Accounting. The following list of changes and improvements is a testament to our users and their commitment to making Intermediate Accounting the best book of its kind. • Added an Additional Consideration box that considers the effect of the time value of money when a customer prepays for a purchase rather than buying on credit. • Revised Real World Case related to zerocoupon bonds of Johnson & Johnson. • Added a Real World Case dealing with the present value of Southwest Airline’s leases. Chapter 7 CASH AND RECEIVABLES • Revised accounts receivable analysis of Symantec Corp. and CA, Inc. • Revised coverage of sales discounts and sales returns to refl ect new revenue recognition standard and supported that coverage with new assignment materials. • Added coverage of long-term notes receivable to complement existing coverage of short-term notes receivable and supported that coverage with new assignment materials. • Added Where We’re Headed boxes discussing the FASB and IASB projects concerning impairment of notes receivable, providing shorter coverage in the text and a numerical example in Appendix 7B. • Revised Real World cases considering Nike and Del Monte v. Smithfi eld. Chapter 8 INVENTORIES: MEASUREMENT • Added assignment materials on LIFO liquidation and dollar-value LIFO. • Added a PetSmart Analysis Case related to inventory method and ratio analysis. Chapter 9 INVENTORIES: ADDITIONAL ISSUES • Revised the chapter and assignment materials to incorporate the change in GAAP that now requires inventory to be valued at the lower of cost and net realizable value. • Revised the section on changes in inventory method for greater clarity. Chapter 10 PROPERTY, PLANT, AND EQUIPMENT AND INTANGIBLE ASSETS: ACQUISITION AND DISPOSITION • Added an Additional Consideration box on contract acquisition costs to refl ect the new Accounting Standards Update on revenue recognition. • Added assignment materials on interest capitalization, research and development, and software development costs. • Added a PetSmart Analysis Case related to the reporting of property, plant, and equipment and intangible assets. Chapter 11 PROPERTY, PLANT, AND EQUIPMENT AND INTANGIBLE ASSETS: UTILIZATION AND IMPAIRMENT • Added an Additional Consideration box on the new Accounting Standards Update on the subsequent measurement of goodwill for private companies. • Added a Concept Review Exercise that covers impairment of property, plant, and equipment and goodwill. • Added a Trueblood Accounting Case that deals with the measurement of impairment losses for property, plant, and equipment. • Added a PetSmart Analysis Case related to depreciation and amortization. Chapter 12 INVESTMENTS • Revised opening fi nancial reporting case • Replaced the Where We’re Headed Supplement with Where We’re Headed boxes discussing the FASB and IASB projects concerning classifi cation, measurement and impairment of investments. • Added new assignment material on IFRS treatment of investments. • Added new assignment material on equity method. • Revised assignment material with realworld cases involving Intel, Unilever, and Microsoft. Chapter 13 CURRENT LIABILITIES AND CONTINGENCIES • Added Additional Consideration box to provide coverage on accounting for interest on advanced collections from customers, as required in the new revenue recognition standard. • Revised coverage of warranties to be consistent with new revenue recognition standard. • Added Additional Consideration box detailing coverage of rebates, premiums and coupons to be consistent with new revenue recognition standard. • Added new assignment material with respect to contingent liabilities and unasserted claims, • Revised assignment material with realworld cases involving Dow Chemical, Morgan Stanley, PetSmart, AU Optronics, B Communications LTD. • Added Trueblood Accounting Cases involving loss contingencies for litigation and subsequent events. Chapter 14 BONDS AND LONG-TERM NOTES • Added an illustration of Microsoft’s disclosure of debt payment commitments. • Revised illustration of Pepsi and Coca Cola and the related fi nancial statement analysis comparing their debt-equity ratios, return on assets, return on equity, and interest coverage. • Added an example of Lakeland Bancorp’s gain on early extinguishment of debt. • Revised the section describing the fair value option to refl ect the FASB’s new requirement to report related gains and losses in other comprehensive income. Also revised related assignment material. • Revised Appendix A on When Bonds are Issued between Interest Dates to include bonds issued at a discount between interest dates as well as related assignment material. • Added assignment material on notes issued for cash from the borrower’s and lender’s perspectives, notes issued for a noncash asset from the lender’s perspective, installment notes from the lender’s perspective, and an IFRS-based problem on transaction costs.
Spiceland_Inter_Accounting8e_Changes
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