A MODERN APPROACH TO ADVANCED ACCOUNTING Like the nine editions preceding it, Modern Advanced Accounting, 10e, provides students with the tools necessary to succeed in the modern world of accounting. The emphasis throughout the book is on financial accounting concepts and on the application of those concepts to problems arising in both business and nonbusiness organizations. Specialized accounting entities such as partnerships and affiliated companies and topics such as international accounting standards and business segments are dealt with in terms of current-day accounting issues. The book continues to earn high praise from reviewers and adopters for the following:

Modern Advanced Accounting, 10e, continues to emphasize case studies involving analytical and conceptual thinking on both accounting and ethical issues, some of which require students to research suggested references on the Internet. These cases challenge students to stretch their thinking beyond the basic accounting issues.

Modern Advanced Accounting begins with a chapter on ethical issues in accounting, and integrates coverage of ethics as appropriate in the subsequent chapters. Coverage of ethical issues in those chapters is denoted by a special icon. The ethics codes of the AICPA, FEI, and IMA are presented, along with summaries of numerous SEC Accounting and Auditing Enforcement Releases and illustrations of financial accounting and reporting from public companies’ financial reports.

The learning and assignment material provided at the end of the chapter is divided into four groups: review questions, exercises, cases, and problems. Review questions may be used by students as a self-testing and review device to measure comprehension of key points. Exercises typically cover a specific point or topic and do not require extensive computations. Cases require analytical reasoning, but generally require little or no quantitative data. Students are required to analyze business situations, to apply accounting standards, and to propose or evaluate a course of action. Finally, the problems demonstrate the concepts presented in the theoretical discussion included in the chapter. Ample opportunity exists to vary homework assignments from term to term.

Following the first chapter on ethical issues in advanced accounting, the remaining 18 chapters are grouped into five areas of concentration to facilitate the planning and presentation of the subject matter and make it easier for students to learn and retain the concepts and procedures presented.

Following ethical issues in Chapter 1, the first section deals with the accounting principles and procedures for partnerships, joint ventures, and branch operations. Partnerships (limited liability, general, and limited) and joint ventures are covered in Chapters 2 and 3, which take the student from the basic concepts of partnership accounting often presented in an introductory accounting course to the more complex problems of income sharing, realignment of partners’ equities, and liquidation. Chapter 4, which deals with home office–branch relationships and combined financial statements, provides a logical stepping-stone to the six chapters dealing with business combinations and consolidated financial statements.

The sequencing of topics in Chapters 5 through 10 is designed to take the student from the less complex date-of-business combination accounting and financial statement display issues to the more rigorous features of post-combination accounting and display matters. Where appropriate, provisions of the FASB’s proposed Statement, “Consolidated Financial Statements: Purpose and Policy,” are discussed in Chapters 6 through 10.

The many complex matters involved in international accounting are discussed in Chapters 11 and 12, which emphasize the increasing importance and impact of the International Accounting Standards Board. The three topics covered in Chapter 13 are indirectly related to the subject matter of Chapters 11 and 12 and thus are included here.

The fourth section of the book includes chapters entitled “Bankruptcy: Liquidation and Reorganization” and “Estates and Trusts.” Although some instructors may not cover these two traditional topics in their courses, I believe that it is imperative to include them for those who wish to do so. Many accountants in today’s practice environment must assist clients with problems of bankruptcy, liquidation, reorganization, and the accounting for estates and trusts.

In Chapters 17 through 19, students progress from accounting and financial statement display issues for a governmental entity’s general fund through its other governmental-type funds to its proprietary and fiduciary funds and its comprehensive annual financial report. No specific type of nonprofit organization is emphasized in Chapter 16; instead, an overview of accounting and reporting issues for various such organizations are dealt with; and in Chapter 19 students are referred to a Journal of Accountancy that illustrates a city’s financial statements.

The text and supplementary materials have been revised to reflect the latest accounting pronouncements and standards, including:

• The Sarbanes-Oxley Act of 2002 and its creation, the Public Company Accounting Oversight Board, in Chapters 1 and 13.

• The Financial Accounting Standards Board’s reexamination of purchase accounting for business combinations in Chapter 5.

• Variable interest entities and special purpose entities in Chapter 6.

• Financial Accounting Standards Board/International Accounting Standards Board convergence project in Chapter 11.

• FASB Interpretation No. 46 (original and revised), “Consolidation of Variable Interest Entities” in Chapter 6.

• FASB Statement No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” in Chapter 13.

• GASB Statement No. 42, “Accounting and Reporting for Impairment of Capital Assets and for Insurance Recoveries” in Chapter 18.

• GASB Statement No. 41, “Budgetary Comparison Schedules—Perspective Differences” in Chapter 19.

• GASB Statement No. 44, “Economic Condition Reporting: The Statistical Section” in Chapter 19.

Modern Advanced Accounting, 10e, is accompanied by a comprehensive package of supplementary items for both students and instructors.

   The Study Guide/Working Papers (ISBN: 007299116X) supplement is available for students to purchase. The Study Guide, prepared by the author, is designed to help students measure their progress by providing immediate feedback. It contains an outline of the important points for each chapter, plus a variety of objective questions, short exercises, and a case. Answers to the questions, exercises, and case are at the end of each Study Guide chapter to help students evaluate their understanding of the subject matter.

   Accounting Working Papers for the problems are included in the same supplement as the Study Guide. On these working papers the organization names, problem numbers, numerous headings, and some preliminary data (such as trial balances) have been entered to save students time and to facilitate review by the instructor.

   The Instructor’s Resource CD-ROM (IRCD, ISBN: 0072993995), prepared by the author of the text, is a comprehensive resource for instructors combining several teaching supplements into one easy-to-use format. The IRCD contains the following:

• Instructor’s Resource Guide: This teaching aid is designed to assist instructors in preparing assignments and in covering the material in class. It includes a description of end-of-chapter coverage, suggested assignments, objectives of chapter and suggested teaching approach, and review of the chapter.

• Solutions Manual: The Solutions Manual contains answers to all review questions, exercises, cases, and problems in the text. In addition, at the beginning of each chapter, there are short descriptions, time estimates, and difficulty ratings for each of the problems to help instructors to choose problems that best fit the needs of their individual courses in terms of scope, level, and emphasis.

• Test Bank: The Test Bank contains true/false and multiple choice questions, short problems, and a case for each chapter. Complete answers are provided for all questions, problems, and cases.

• Computerized Test Bank: It can be used to create different versions of the same test, change the answer order, edit and add questions, and conduct online testing.

• PowerPoint ® Slides: PowerPoint ® lecture outlines are provided for all chapters.

   Online Learning Center with PowerWeb (URL: www.mhhe.com/larsen10e) is a book-specific website that includes the following:

• PowerWeb: This feature is a unique website that extends the learning experience beyond the core textbook and includes the following learning aids:

• Current readings with assessments

• Study tips and self-quizzes

• Links to related sites

• Web research guide

• Access to Northern Light Search Engine providing Internet access to additional articles

• Online Quizzes: Interactive quizzes provide an additional opportunity for self-study and review

• Text Updates: As appropriate, new standards and pronouncements are posted to the Online Learning Center.

• PROFESSIONAL RESOURCES: LINKS TO APPROPRIATE PROFESSIONAL RESOURCES ARE ALSO PROVIDED.