2-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
,Solution Manual For All Chapters
zl zl zl zl
SOLUTION MANUAL FOR zl zl
ADVANCED ACCOUNTING 15TH EDITION BY JOE BEN HOYLE, THOMAS SCHAEFE
zl zl zl zl zl zl zl zl zl
R AND TIMOTHY DOUPNIK
zl zl zl
CHAPTER 1-19 zl
CHAPTER1 TH zl zl
E EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS
zl zl zl zl zl zl
Chapter Outline zl
I. Four methods are principally used to account for an investment in equity securities along wi
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
th a fair value option.
zl zl zl zl
A. Fair value method: applied by an investor when only a small percentage of a c
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ompany‘s voting stock is held. zl zl zl zl
1. The investor recognizes income when the investee declares a dividend.
zl zl zl zl zl zl zl zl zl
2. Portfolios are reported at fair value. If fair values are unavailable, investment is re
zl zl zl zl zl zl zl zl zl zl zl zl zl
ported at cost. zl zl
B. Cost Method: applied to investments without a readily determinable fair value. When th
zl zl zl zl zl zl zl zl zl zl zl zl
e fair value of an investment in equity securities is not readily determinable, and the inve
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
stment provides neither significant influence nor control, the investment may be measu
zl zl zl zl zl zl zl zl zl zl zl
red at cost. The investment remains at cost unless
zl zl zl zl zl zl zl zl
1. A demonstrable impairment occurs for the investment, or
zl zl zl zl zl zl zl
2. An observable price change occurs for identical or similar investments of the same is
zl zl zl zl zl zl zl zl zl zl zl zl zl
suer.
The investor typically recognizes its share of investee dividends declared as dividend inc
zl zl zl zl zl zl zl zl zl zl zl zl
ome.
C. Consolidation: when one firm controls another (e.g., when a parent has a majority int zl zl zl zl zl zl zl zl zl zl zl zl zl
erest in the voting stock of a subsidiary or control through variable interests, their fina
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ncial statements are consolidated and reported for the combined entity.
zl zl zl zl zl zl zl zl zl
D. Equity method: applied when the investor has the ability to exercise significant in
zl zl zl zl zl zl zl zl zl zl zl zl
fluence over operating and financial policies of the investee. zl zl zl zl zl zl zl zl
1. Ability to significantly influence investee is indicated by several factors including r
zl zl zl zl zl zl zl zl zl zl zl
epresentation on the board of directors, participation in policy-making, etc. zl zl zl zl zl zl zl zl zl
2. GAAP guidelines presume the equity method is applicable if 20 to 50 percent of the
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
2-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
, outstanding voting stock of the investee is held by the investor. zl zl zl zl zl zl zl zl zl zl
Current financial reporting standards allow firms to elect to use fair value for any new invest
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ment in equity shares including those where the equity method would otherwise apply. Howe
zl zl zl zl zl zl zl zl zl zl zl zl zl
ver, the option, once taken, is irrevocable. The investor recognizes both investee dividends
zl zl zl zl zl zl zl zl zl zl zl zl zl
and changes in fair value over time as income.
zl zl zl zl zl zl zl zl
II. Accounting for an investment: the equity method
zl zl zl zl zl zl
A. The investor adjusts the investment account to reflect all changes in the equity of the in
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee company. zl
B. The investor accrues investee income when it is reported in the investee‘s financial st
zl zl zl zl zl zl zl zl zl zl zl zl zl
atements.
C. Dividends declared by the investee create a reduction in the carrying amount of the Inv
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
estment account. This book assumes all investee dividends are declared and paid in th
zl zl zl zl zl zl zl zl zl zl zl zl zl
e same reporting period.
zl zl zl
III. Special accounting procedures used in the application of the equity method
zl zl zl zl zl zl zl zl zl zl
A. Reporting a change to the equity method when the ability to significantly influence an in
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee is achieved through a series of acquisitions.
zl zl zl zl zl zl zl
1. Initial purchase(s) will be accounted for by means of the fair value method (or at c
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ost) until the ability to significantly influence is attained.
zl zl zl zl zl zl zl zl
2. When the ability to exercise significant influence occurs following a series of stock p
zl zl zl zl zl zl zl zl zl zl zl zl zl
urchases, the investor applies the equity method prospectively. The total fair value zl zl zl zl zl zl zl zl zl zl zl zl
at the date significant influence is attained is compared to the investee‘s book value
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
to determine future excess fair value amortizations.
zl zl zl zl zl zl
B. Investee income from other than continuing operationszl zl zl zl zl zl
1. The investor recognizes its share of investee reported other comprehensive i
zl zl zl zl zl zl zl zl zl zl
ncome (OCI) through the investment account and the investor‘s own OCI.
zl zl zl zl zl zl zl zl zl zl
2. Income items such as discontinued operations that are reported separately by the in
zl zl zl zl zl zl zl zl zl zl zl zl
vestee should be shown in the same manner by the investor. The materiality of thes
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
e other investee income elements (as it affects the investor) continues to be a criteri
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
on for separate disclosure. zl zl zl
C. Investee losses zl
1. Losses reported by the investee create corresponding losses for the investor.
zl zl zl zl zl zl zl zl zl zl
2. A permanent decline in the fair value of an investee‘s stock should be recognized i
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
mmediately by the investor as an impairment loss. zl zl zl zl zl zl zl
3. Investee losses can possibly reduce the carrying value of the investment account to
zl zl zl zl zl zl zl zl zl zl zl zl zl
a zero balance. At that point, the equity method ceases to be applicable and the fair-
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
value method is subsequently used. zl zl zl zl
D. Reporting the sale of an equity investment zl zl zl zl zl zl
1. The investor applies the equity method until the disposal date to establish a proper b
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ook value. zl
2. Following the sale, the equity method continues to be appropriate if enough shares ar zl zl zl zl zl zl zl zl zl zl zl zl zl
e still held to maintain the investor‘s ability to significantly influence the investee. If th
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
at ability has been lost, the fair-value method is subsequently used.
zl zl zl zl zl zl zl zl zl zl
2-24
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
, Solution Manual For All Chapters zl zl zl zl
IV. Excess investment cost over book value acquired zl zl zl zl zl zl
A. The price an investor pays for equity securities often differs significantly from the in
zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee‘s underlying book value primarily because the historical cost based accou zl zl zl zl zl zl zl zl zl zl
nting model does not keep track of changes in a firm‘s fair value.
zl zl zl zl zl zl zl zl zl zl zl zl
B. Payments made in excess of underlying book value can sometimes be identified with s zl zl zl zl zl zl zl zl zl zl zl zl zl
pecific investee accounts such as inventory or equipment. zl zl zl zl zl zl zl
C. An extra acquisition price can also be assigned to anticipated benefits that are expecte
zl zl zl zl zl zl zl zl zl zl zl zl zl
d to be derived from the investment. In accounting, these amounts are presumed to refl
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ect an intangible asset referred to as goodwill. Goodwill is calculated as any excess pa
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
yment that is not attributable to specific identifiable assets and liabilities of the investee
zl zl zl zl zl zl zl zl zl zl zl zl zl
. Because goodwill is an indefinite-lived asset, it is not amortized.
zl zl zl zl zl zl zl zl zl zl
V. Deferral of intra-entity gross profit in inventory zl zl zl zl zl zl
A. The investor‘s share of intra- zl zl zl zl
entity profits in ending inventory are not recognized until the transferred goods are either
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
consumed or until they are resold to unrelated parties. zl zl zl zl zl zl zl zl
B. Downstream sales of inventory zl zl zl
1. ―Downstream‖ refers to transfers made by the investor to the investee. zl zl zl zl zl zl zl zl zl zl
2. Intra-
entity gross profits from sales are initially deferred under the equity method and th zl zl zl zl zl zl zl zl zl zl zl zl zl
en recognized as income at the time of the inventory‘s eventual disposal.
zl zl zl zl zl zl zl zl zl zl zl
3. The amount of gross profit to be deferred is the investor‘s ownership percentage m zl zl zl zl zl zl zl zl zl zl zl zl zl
ultiplied by the markup on the merchandise remaining at the end of the year. zl zl zl zl zl zl zl zl zl zl zl zl zl
C. Upstream sales of inventory zl zl zl
1. ―Upstream‖ refers to transfers made by the investee to the investor. zl zl zl zl zl zl zl zl zl zl
2. Under the equity method, the deferral process for intra- zl zl zl zl zl zl zl zl
entity gross profits is identical for upstream and downstream transfers. The proced zl zl zl zl zl zl zl zl zl zl zl
ures are separately identified in Chapter One because the handling does vary within zl zl zl zl zl zl zl zl zl zl zl zl
the consolidation process. zl zl zl
Answers to Discussion Questions zl zl zl
The textbook includes discussion questions to stimulate student thought and discussion. These qu
zl zl zl zl zl zl zl zl zl zl zl zl
estions are also designed to allow students to consider relevant issues that might otherwise be overl
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ooked. Some of these questions may be addressed by the instructor in class to motivate student dis
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
cussion. Students should be encouraged to begin by defining the issue(s) in each case. Next, autho
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ritative accounting literature (FASB ASC) or other relevant literature can be consulted as a prelimin
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ary step in arriving at logical actions. Frequently, the FASB Accounting Standards Codification will
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
provide the necessary support. zl zl zl
Unfortunately, in accounting, definitive resolutions to financial reporting questions are not always av
zl zl zl zl zl zl zl zl zl zl zl zl
ailable. Students often seem to believe that all accounting issues have been resolved in the past so
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
that accounting education is only a matter of learning to apply historically prescribed procedures. H
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
owever, in actual practice, the only real answer is often the one that provides the fairest representati
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
on of the firm‘s transactions. If an authoritative solution is not available, students should be directed
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
to list all of the issues involved and the consequences of possible alternative actions. The various fa
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ctors presented can be weighed to produce a viable solution.
zl zl zl zl zl zl zl zl zl
The discussion questions are designed to help students develop research and critical thinking skills
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
in addressing issues that go beyond the purely mechanical elements of accounting.
zl zl zl zl zl zl zl zl zl zl zl
2-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
,Solution Manual For All Chapters
zl zl zl zl
SOLUTION MANUAL FOR zl zl
ADVANCED ACCOUNTING 15TH EDITION BY JOE BEN HOYLE, THOMAS SCHAEFE
zl zl zl zl zl zl zl zl zl
R AND TIMOTHY DOUPNIK
zl zl zl
CHAPTER 1-19 zl
CHAPTER1 TH zl zl
E EQUITY METHOD OF ACCOUNTING FOR INVESTMENTS
zl zl zl zl zl zl
Chapter Outline zl
I. Four methods are principally used to account for an investment in equity securities along wi
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
th a fair value option.
zl zl zl zl
A. Fair value method: applied by an investor when only a small percentage of a c
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ompany‘s voting stock is held. zl zl zl zl
1. The investor recognizes income when the investee declares a dividend.
zl zl zl zl zl zl zl zl zl
2. Portfolios are reported at fair value. If fair values are unavailable, investment is re
zl zl zl zl zl zl zl zl zl zl zl zl zl
ported at cost. zl zl
B. Cost Method: applied to investments without a readily determinable fair value. When th
zl zl zl zl zl zl zl zl zl zl zl zl
e fair value of an investment in equity securities is not readily determinable, and the inve
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
stment provides neither significant influence nor control, the investment may be measu
zl zl zl zl zl zl zl zl zl zl zl
red at cost. The investment remains at cost unless
zl zl zl zl zl zl zl zl
1. A demonstrable impairment occurs for the investment, or
zl zl zl zl zl zl zl
2. An observable price change occurs for identical or similar investments of the same is
zl zl zl zl zl zl zl zl zl zl zl zl zl
suer.
The investor typically recognizes its share of investee dividends declared as dividend inc
zl zl zl zl zl zl zl zl zl zl zl zl
ome.
C. Consolidation: when one firm controls another (e.g., when a parent has a majority int zl zl zl zl zl zl zl zl zl zl zl zl zl
erest in the voting stock of a subsidiary or control through variable interests, their fina
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ncial statements are consolidated and reported for the combined entity.
zl zl zl zl zl zl zl zl zl
D. Equity method: applied when the investor has the ability to exercise significant in
zl zl zl zl zl zl zl zl zl zl zl zl
fluence over operating and financial policies of the investee. zl zl zl zl zl zl zl zl
1. Ability to significantly influence investee is indicated by several factors including r
zl zl zl zl zl zl zl zl zl zl zl
epresentation on the board of directors, participation in policy-making, etc. zl zl zl zl zl zl zl zl zl
2. GAAP guidelines presume the equity method is applicable if 20 to 50 percent of the
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
2-1
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
, outstanding voting stock of the investee is held by the investor. zl zl zl zl zl zl zl zl zl zl
Current financial reporting standards allow firms to elect to use fair value for any new invest
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ment in equity shares including those where the equity method would otherwise apply. Howe
zl zl zl zl zl zl zl zl zl zl zl zl zl
ver, the option, once taken, is irrevocable. The investor recognizes both investee dividends
zl zl zl zl zl zl zl zl zl zl zl zl zl
and changes in fair value over time as income.
zl zl zl zl zl zl zl zl
II. Accounting for an investment: the equity method
zl zl zl zl zl zl
A. The investor adjusts the investment account to reflect all changes in the equity of the in
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee company. zl
B. The investor accrues investee income when it is reported in the investee‘s financial st
zl zl zl zl zl zl zl zl zl zl zl zl zl
atements.
C. Dividends declared by the investee create a reduction in the carrying amount of the Inv
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
estment account. This book assumes all investee dividends are declared and paid in th
zl zl zl zl zl zl zl zl zl zl zl zl zl
e same reporting period.
zl zl zl
III. Special accounting procedures used in the application of the equity method
zl zl zl zl zl zl zl zl zl zl
A. Reporting a change to the equity method when the ability to significantly influence an in
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee is achieved through a series of acquisitions.
zl zl zl zl zl zl zl
1. Initial purchase(s) will be accounted for by means of the fair value method (or at c
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ost) until the ability to significantly influence is attained.
zl zl zl zl zl zl zl zl
2. When the ability to exercise significant influence occurs following a series of stock p
zl zl zl zl zl zl zl zl zl zl zl zl zl
urchases, the investor applies the equity method prospectively. The total fair value zl zl zl zl zl zl zl zl zl zl zl zl
at the date significant influence is attained is compared to the investee‘s book value
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
to determine future excess fair value amortizations.
zl zl zl zl zl zl
B. Investee income from other than continuing operationszl zl zl zl zl zl
1. The investor recognizes its share of investee reported other comprehensive i
zl zl zl zl zl zl zl zl zl zl
ncome (OCI) through the investment account and the investor‘s own OCI.
zl zl zl zl zl zl zl zl zl zl
2. Income items such as discontinued operations that are reported separately by the in
zl zl zl zl zl zl zl zl zl zl zl zl
vestee should be shown in the same manner by the investor. The materiality of thes
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
e other investee income elements (as it affects the investor) continues to be a criteri
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
on for separate disclosure. zl zl zl
C. Investee losses zl
1. Losses reported by the investee create corresponding losses for the investor.
zl zl zl zl zl zl zl zl zl zl
2. A permanent decline in the fair value of an investee‘s stock should be recognized i
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
mmediately by the investor as an impairment loss. zl zl zl zl zl zl zl
3. Investee losses can possibly reduce the carrying value of the investment account to
zl zl zl zl zl zl zl zl zl zl zl zl zl
a zero balance. At that point, the equity method ceases to be applicable and the fair-
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
value method is subsequently used. zl zl zl zl
D. Reporting the sale of an equity investment zl zl zl zl zl zl
1. The investor applies the equity method until the disposal date to establish a proper b
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ook value. zl
2. Following the sale, the equity method continues to be appropriate if enough shares ar zl zl zl zl zl zl zl zl zl zl zl zl zl
e still held to maintain the investor‘s ability to significantly influence the investee. If th
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
at ability has been lost, the fair-value method is subsequently used.
zl zl zl zl zl zl zl zl zl zl
2-24
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
, Solution Manual For All Chapters zl zl zl zl
IV. Excess investment cost over book value acquired zl zl zl zl zl zl
A. The price an investor pays for equity securities often differs significantly from the in
zl zl zl zl zl zl zl zl zl zl zl zl zl
vestee‘s underlying book value primarily because the historical cost based accou zl zl zl zl zl zl zl zl zl zl
nting model does not keep track of changes in a firm‘s fair value.
zl zl zl zl zl zl zl zl zl zl zl zl
B. Payments made in excess of underlying book value can sometimes be identified with s zl zl zl zl zl zl zl zl zl zl zl zl zl
pecific investee accounts such as inventory or equipment. zl zl zl zl zl zl zl
C. An extra acquisition price can also be assigned to anticipated benefits that are expecte
zl zl zl zl zl zl zl zl zl zl zl zl zl
d to be derived from the investment. In accounting, these amounts are presumed to refl
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ect an intangible asset referred to as goodwill. Goodwill is calculated as any excess pa
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
yment that is not attributable to specific identifiable assets and liabilities of the investee
zl zl zl zl zl zl zl zl zl zl zl zl zl
. Because goodwill is an indefinite-lived asset, it is not amortized.
zl zl zl zl zl zl zl zl zl zl
V. Deferral of intra-entity gross profit in inventory zl zl zl zl zl zl
A. The investor‘s share of intra- zl zl zl zl
entity profits in ending inventory are not recognized until the transferred goods are either
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
consumed or until they are resold to unrelated parties. zl zl zl zl zl zl zl zl
B. Downstream sales of inventory zl zl zl
1. ―Downstream‖ refers to transfers made by the investor to the investee. zl zl zl zl zl zl zl zl zl zl
2. Intra-
entity gross profits from sales are initially deferred under the equity method and th zl zl zl zl zl zl zl zl zl zl zl zl zl
en recognized as income at the time of the inventory‘s eventual disposal.
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3. The amount of gross profit to be deferred is the investor‘s ownership percentage m zl zl zl zl zl zl zl zl zl zl zl zl zl
ultiplied by the markup on the merchandise remaining at the end of the year. zl zl zl zl zl zl zl zl zl zl zl zl zl
C. Upstream sales of inventory zl zl zl
1. ―Upstream‖ refers to transfers made by the investee to the investor. zl zl zl zl zl zl zl zl zl zl
2. Under the equity method, the deferral process for intra- zl zl zl zl zl zl zl zl
entity gross profits is identical for upstream and downstream transfers. The proced zl zl zl zl zl zl zl zl zl zl zl
ures are separately identified in Chapter One because the handling does vary within zl zl zl zl zl zl zl zl zl zl zl zl
the consolidation process. zl zl zl
Answers to Discussion Questions zl zl zl
The textbook includes discussion questions to stimulate student thought and discussion. These qu
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estions are also designed to allow students to consider relevant issues that might otherwise be overl
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ooked. Some of these questions may be addressed by the instructor in class to motivate student dis
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cussion. Students should be encouraged to begin by defining the issue(s) in each case. Next, autho
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ritative accounting literature (FASB ASC) or other relevant literature can be consulted as a prelimin
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ary step in arriving at logical actions. Frequently, the FASB Accounting Standards Codification will
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provide the necessary support. zl zl zl
Unfortunately, in accounting, definitive resolutions to financial reporting questions are not always av
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ailable. Students often seem to believe that all accounting issues have been resolved in the past so
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that accounting education is only a matter of learning to apply historically prescribed procedures. H
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owever, in actual practice, the only real answer is often the one that provides the fairest representati
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on of the firm‘s transactions. If an authoritative solution is not available, students should be directed
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to list all of the issues involved and the consequences of possible alternative actions. The various fa
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ctors presented can be weighed to produce a viable solution.
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The discussion questions are designed to help students develop research and critical thinking skills
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in addressing issues that go beyond the purely mechanical elements of accounting.
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2-3
© McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
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