Intermediate Accounting IFRS, 4/e (Paperback)

Donald E. Kieso , Jerry J. Weygandt , Terry D. Warfield



Content Changes by Chapter
Chapter 1: Financial Reporting and Accounting Standards
• New opening story on the current usage of IFRS and its impact on public companies worldwide.
• New What Do the Numbers Mean? (WDNM) box on IFRS for SMEs, which is helping IFRS to gain traction with non-public companies.
Chapter 2: Conceptual Framework for Financial Reporting
• Updated throughout to reflect the 2018 IASB Conceptual Framework for Financial Reporting.
Chapter 3: The Accounting Information System
• New opening story on blockchain.
Chapter 4: Income Statement and Related Information
• Updated WDNM box on alternative performance measures used by companies.
Chapter 5: Statement of Financial Position and Statement of Cash Flows
• Updated discussions throughout on recent status of IASB project on the presentation in the statement of financial position as well as that on performance reporting.
• New footnote on recent IFRS on classification of current/non-current assets.
Chapter 6: Accounting and the Time Value of Money
• Reformatted time diagram problems for improved understanding and visualization.
Chapter 7: Cash and Receivables
• New opening story, discussing current effect of TCJA in terms of amounts of company cash parked overseas as well as foreign cash balance disclosures.
• Updated definition and discussion of cash equivalents per recent IFRS.
• Updated discussion of sales returns and allowances per recent IFRS, including use of Return Liability account.
• New Evolving Issue on what companies should include as part of cash and cash equivalents on the statement of financial position, such as cryptocurrencies (now classified as intangible assets or inventory).
• New WDNM box on the pros and cons of securitizations.
Chapter 8: Valuation oflnventories: A Cost-Basis Approach
• New WDNM box on retailers using an omnichannel approach and the impact this has on inventory levels.
Chapter 9: Inventories: Additional Valuation Issues
• New WDNM box on the corporate barter method to handle problem inventory.
Chapter 10: Acquisition and Disposition of Property, Plant, and Equipment
• Updated discussion on borrowing costs during construction per recent IFRS.
• Updated discussion on involuntary conversion per recent IFRS
Chapter 11: Depreciation, Impairments, and Depletion
• Updated opening story on how technology companies are especially vulnerable to impairment losses.
• Updated definition of depreciation per recent IFRS.
• Updated per recent IFRS requirement that companies review estimates for residual value and service life annually and revise if needed.
• Updated WDNM box on revaluation accounting to highlight how companies use it effectively in the hospitality industry.
Chapter 12: Intangible Assets
• Updated for ASB project on goodwill.
Chapter 13: Current Liabilities, Provisions, and Contingencies
• Updated opening story to include most recent IASB position and considerations regarding liabilities, including contingent liabilities.
• NewWDNM box on how SAP's current liabilities account can signal both good and bad news for investors.
Chapter 14: Non-Current Liabilit ies
• New opening story discussing how total global debt as well as bond issuances continue to increase.
• New WDNM box on negative interest rates-what they are, who issues them, and who invests in them.
• New footnote on recognition that LIBOR is no longer a reliable measure of interest rates between banks and how the Financial Stability Board has been tasked with determining more reliable benchmark rates.
Chapter 15: Equity
• Updated opening story for most recent data indicating continued increase in global investment opportunities.
• New introduction and illustration to emphasize current prevalence in share buybacks.
Chapter 16: Dilutive Securities and Earnings per Share
• Updated opening story to include most recent information about median CEO pay by region to indicate increased usage of share option awards in employee pay packages.
• Updated footnote 1 to provide latest information regarding IASB's development of a standard that will improve the financial reporting requirements for financial instruments with characteristics of debt and equity.
Chapter 17: Investments
• New opening story on whether IFRS 9 has actually resulted in companies reporting more decision-useful information.
• Updated footnote 1 on definition of financial assets per latest IFRS.
• New WDNM box on whether the single impairment model, based on expected cre.dit losses, will give banks and investors in banks a better early warning of deteriorating credit quality.
• Updated table showing differences between traditional and derivative financial instruments based on latest IFRS.
• Updated WDNM box on equity method accounting per IFRS 10, as well as updated WDNM box on derivatives market per recent data.
Chapter 18: Revenue Recognition
• Updated opening story as companies have begun to implement the most recent revenue recognition standard, including the continuing challenge on the amount of judgment that is still required in determining how to report revenue transactions and how that relates to key audit matters (KAMs).
• Replaced Evolving Issue with discussion on whether the most recent revenue recognition standard represents a convergence with U.S. GAAP or has actually resulted in more differences.
• New WDNM box on how returns can significantly affect reported revenues for e-commerce companies.
Chapter 19: Accounting for Income Taxes
• Loss carryforward and loss carrybacks updated per recent tax law changes; loss carrybacks now discussed in a new Appendix 19B.
• WDNM box on global tax rates completed updated per most recent information as well as the OECD and G20 BEPS (Base Erosion and Profit Sharing) initiative.
Chapter 20: Accounting for Pensions and Postretirement Benefits
• Updated opening story, for most recent information on how the financial crisis of 2008 is still impacting companies' pension plans.
• Updated discussion of IAS 19 (see footnote 11 as well as "Recognition of the Net Funded Status of the Pension Plan" section) and how it limits amount of pension asset that is recognized (the asset ceiling).
Chapter 21: Accounting for Leases
• Updated opening story as new lease accounting rules are not expected to be implemented until 2020, a slight delay.
•New illustration showing Air France's incorporation of new lease accounting standard into its financial statements.
Chapter 22: Accounting Changes and Error Analysis
• Updated opening story based on recent IFRS 9, IFRS 15, and IFRS 16.
• Updated WDNM box on accounting change estimates to show the 10 most common changes in accounting estimates as well as the positive/negative impacts of these changes on income.
Chapter 23: Statement of Cash Flows
• Updated chapter to include most recent IFRS on cash equivalents, as well as IFRS on disclosures needed if beginning and ending cash balances on the statement of cash flows do not reconcile.
• New footnote discussing IASB's Primary Financial Statements project regarding interest and dividends paid or received.
Chapter 24: Presentation & Disclosure in Financial Reporting
• Updated opening story to include new IFRS practice statement related to making materiality judgments.
• New discussion and example of key audit matters (KAMs).
• New discussion and example of alternative performance measures.


Chapter 1 Financial Reporting and Accounting Standards.
Chapter 2 Conceptual Framework for Financial Reporting.
Chapter 3 The Accounting Information System.
Chapter 4 Income Statement and Related Information.
Chapter 5 Statement of Financial Position and Statement of Cash Flows.
Chapter 6 Accounting and the Time Value of Money.
Chapter 7 Cash and Receivables.
Chapter 8 Valuation of Inventories: A Cost-Basis Approach.
Chapter 9 Inventories: Additional Valuation Issues.
Chapter 10 Acquisition and Disposition of Property, Plant, and Equipment.
Chapter 11 Depreciation, Impairments, and Depletion.
Chapter 12 Intangible Assets.
Chapter 13 Current Liabilities, Provisions, and Contingencies.
Chapter 14 Non-Current Liabilities.
Chapter 15 Equity.
Chapter 16 Dilutive Securities and Earnings per Share.
Chapter 17 Investments.
Chapter 18 Revenue Recognition.
Chapter 19 Accounting for Income Taxes.
Chapter 20 Accounting for Pensions and Postretirement Benefits.
Chapter 21 Accounting for Leases.
Chapter 22 Accounting Changes and Error Analysis.
Chapter 23 Statement of Cash Flows.
Chapter 24 Presentation and Disclosure in Financial Reporting.