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.