Updated and revised, this tenth edition helps accountants build strong critical thinking skills and a sound theoretical background. This enables them to evaluate accounting practice in today's increasingly global world economy. A unique and timely collection of cases and readings cover all areas of accounting and shows how the latest accounting standards impact decision making. New FASB codification cases provide up-to-date information. Room for Debate cases in each chapter, as well as updated disclosure examples throughout the book, also engage accountants as they learn how the material relates to their profession.
Preface
1 The Development of Accounting Theory 1
The Early History of Accounting 2
Accounting in the United States since 1930 5
The Role of Ethics in Accounting 21
International Accounting Standards 25
Cases 27
FASB ASC Research 29
Room for Debate 30
2 The Pursuit of the Conceptual Framework 31
The Early Theorists 31
Early Authoritative and Semi-Authoritative Organizational Attempts to Develop the Conceptual Framework of Accounting 34
The FASB's Conceptual Framework Project 45
Principles-Based versus Rules-Based Accounting Standards 58
International Convergence 63
Cases 73
FASB ASC Research 76
Room for Debate 77
3 International Accounting 78
International Business Accounting Issues 79
The Development of Accounting Systems 79
Preparation of Financial Statements for Foreign Users 81
The International Accounting Standards Committee 82
Revising the IASB's Constitution 88
The Uses of International Accouting Standards 90
Current Issues 91
The IASB Annual Improvements Project 92
The Use of IASC Standards 93
The IASB-FASB Convergence Project 93