About This Book
This textbook is intended for a first course in intermediate financial accounting. It presumes that students have already completed introductory financial accounting. It has been extensively edited by Fanshawe College from its original version Intermediate Financial Accounting Volume 1 written by Glenn Arnold and Suzanne Kyle. For a list of changes, please see the table below.
The textbook focuses on more difficult intermediate financial accounting topics that match prerequisite requirement for students progressing to a second level Intermediate financial accounting course as well as CPA courses. Advanced financial accounting topics such as consolidations and foreign exchanges have not been included.
The textbook also provides a review of introductory accounting concepts and covers all essential first level intermediate financial accounting topics, including: comprehensive income; revenue recognition; cash and receivables; assigning costs to inventory; tangible and intangible asset valuation and investments.
Changes
| Chapter 1 | Added new material. The material added was modified from the Dauderis and Annand (Lyryx) Introductory Accounting textbook. Also added information about creating a worksheet.
Included additional information and an introduction to the adjusting entries and worksheet sections. Added additional details to the adjusting entries including a section on supplies inventory and additional explanation of calculations. |
| Chapter 3 | Added material. Included more detailed explanations and examples about Other Comprehensive Income (OCI) and explained Accumulated Other Comprehensive Income (AOCI). Additional detail was accomplished by adding more examples. Also added more information related to discontinued operations and how that should be reported on the financial statements.
Added additional information to the single-step income statement section Added additional information and an example to the earnings per share calculation section. |
| Chapter 4 | Added more information about the classified balance sheet.
Added a summary about the balance sheet. Added a summary about the statement of cash flow. |
| Chapter 5 | Added detailed examples (journal entries and calculations) for revenue recognition. This included a formula diagram for percent of completion as well as additional examples for completed contract method of revenue recognition. Also included additional details on the five steps to revenue recognition.
Added more detailed information about IFRS 15. Created additional examples for revenue recognition. |
| Chapter 6 | Added information about foreign currency transactions.
Added more details about cash – including bank overdrafts and restricted cash. Added more details on selling accounts receivable with and without recourse. |
| Chapter 7 | Added additional material and sections on purchase commitments; weighted average inventory valuation and examples for Lower of Cost and Market (LCM) calculations. Added examples within the body of the text including journal entries and supporting calculations.
Added more details on different types of inventory. Added a summary tables relating to inventory errors. |
| Chapter 8 | Reorganized the financial instruments section by adding additional details and reconfigured the chapter into manageable sections.
Added general information about investments. Added clarification to FV-NI investments. |
| Chapter 9 | Added a section on Asset Retirement Obligations (ARO). Added additional details, included a chart on non-monetary exchanges. Added additional examples including: cost model examples and other examples for asset revaluation.
Added details about componentization. Added a section about leasehold improvements Added a section on equipment Added a section on natural resource property |
| Chapter 10 | Added a partial-period depreciation calculation example. Added a diagram and expanded the section on accounting for impairment (IFRS).
Added more details on rational entity impairment model. |
| Chapter 11 |
Added clarification and additional information about research and development
Added information about amortization expense |
| Overall | Added additional exercises to each chapter |
Accessibility Statement
We are actively committed to increasing the accessibility and usability of the textbooks we produce. Every attempt has been made to make this OER accessible to all learners and is compatible with assistive and adaptive technologies. We have attempted to provide closed captions, alternative text, or multiple formats for on-screen and off-line access.
The web version of this resource has been designed to meet Web Content Accessibility Guidelines 2.0, level AA. In addition, it follows all guidelines in Appendix A: Checklist for Accessibility of the Accessibility Toolkit – 2nd Edition.
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