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 2 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 covers all essential second level intermediate financial accounting topics, including: current liabilities; non-current liabilities such as pensions, income tax and leases; shareholders’ equity; earnings per share; statement of cash flow; accounting changes and financial statement reporting.

Changes

Chapter 12
  • Added a GST/HST form as an exhibit.
Chapter 13
  • Additional details added about troubled debt restructuring.
Chapter 14
  • Additional details added on the residual value method of valuing complex financial instruments including and IFRS ~ ASPE comparison.
  • Additional details added on Compensatory Stock Option Plans (CSOP) including terms and definitions.
Chapter 15
  • Additional details added on the calculation of accounting profit and taxable profit.
  • Additional details added on permanent and temporary differences, including examples of each.
  • Added a sample spreadsheet that can be used as a guide to calculating deferred tax asset or deferred tax liability.
Chapter 16
  • Additional details added on Defined Contribution Plans.
  • Additional details added on Defined Benefit Plans.
Chapter 17
  • Additional details added to define lessee and lessor with respect to lease agreements.
  • Additional details added to clarify sales type leases and direct-financing type leases.
Chapter 18
  • Additional details added to clarify share repurchase transactions.
  • Renamed section 18-4-1 to dividend preferences.
  • Additional details added to the shareholders’ equity section including brief overviews of components of the shareholders’ equity section.
Chapter 20
  • Additional details added to the direct method of reporting the statement of cash flows.
Chapter 21
  • Additional details added to the change in accounting policy definition and terms.
  • Additional details added to define prospective and retrospective changes.
  • Added a summary chart comparing the various accounting changes and how to account for those changes.
Chapter 22
  • Additional details added to clarify and further define subsequent events.
  • Additional details added to clarify the various types of auditor reports.

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.

In addition to the web version, additional files are available in a number of file formats including PDF, EPUB (for eReaders), and MOBI (for Kindles).

If you are having problems accessing this resource, please contact us at oer@fanshawec.ca.

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License

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Intermediate Financial Accounting 2 Copyright © 2022 by Michael Van Roestel is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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