Thomas H. Beechy,
York University Joan E. D. Conrod,
Dalhousie University
ISBN: 0070978859 Copyright year: 2008
Feature Summary
Technical Knowledge
Accountants have to be able to account for things! There is a base level of expertise that must become part of every accountant’s body of knowledge: how to record a receivable, capitalize a lease, account for a pension, or prepare a cash flow statement. Some of the transactions that we must account for are very complex, and their accounting treatment is equally complex. An affinity for numbers is important.
Professional Judgement
Judgement, it is often said, is the hallmark of a profession. There are often different ways to account for the same transaction. Professional accountants have to become expert at sizing up the circumstances and establishing the appropriate accounting policy for those circumstances. Once an accounting policy has been established, there are usually estimates that must be made before the numbers can be recorded. Accounting estimates also require the exercise of professional judgement. Professional judgement is not acquired overnight. It is nurtured and slowly grows over a lifetime. In this book, we begin the development process by explicitly examining the variables that companies consider when evaluating their options, and the criteria that accountants use to make choices. Opportunities to practice judgement are provided in the case material.
A Canadian Agenda
Issues that receive the most attention in this book are those that are relevant in a Canadian context. Many times, the topics covered in other intermediate texts are determined by U.S. standards and priorities because those books are adaptations of U.S. texts. However, there are some significant differences between Canadian and U.S. businesses and business environments that dictate a different emphasis and coverage. In addition, Canadian standards are swiftly being harmonized with international accounting standards. While some U.S. standards are also moving to international accounting standards, their strategic direction remains U.S.-based. We hope you appreciate the Canadian emphasis!
An International Perspective
Following a Canadian agenda means that we all must come up to speed on international standards. Every chapter will explain the differences between current Canadian practice and the policies recommended by the International Accounting Standards Board. If there are differences, the alternatives are reviewed and explained in the chapter material.
Other Key Features
Integration of Cash Flow Material throughout the Text
The cash flow statement is covered in Chapter 5, following reviews of the income statement and balance sheet. Students can thus learn how to do the cash flow statement early in the course. Following this chapter, though, the cash flow implications of various complex transactions are reviewed in each relevant chapter. There is cash flow assignment material in most chapters of the book. For those instructors who like to emphasize cash flow material at the end of the course, an appendix has been added to the final chapter that summarizes cash flow statement issues and provides a comprehensive example. This is reinforced with assignment material in the last chapter.
The Accounting Cycle
The basic debit and credit of the accounting world is not really a topic for an intermediate accounting course. It represents the baby steps; we’re trying to learn how to run, or at least jog. For many students, this material was covered in a high school course or an introductory accounting course. Others, who avoided the course in high school and/or who took a conceptually-oriented introductory course in college or university, may need a refresher or further grounding in this area. To answer this need, we have included the accounting cycle as an appendix to Volume I. This provides maximum flexibility to instructors. Some courses may formally devote time to this appendix, and others may use it as a reference only.
Accuracy
The text has been extensively reviewed and proofread prior to publication. Chapter material has been reviewed by professional accountants. All assignment materials have been solved independently by multiple individual “assignment checkers” in addition to the authors. Nevertheless, it is inevitable that errors remain, for which we accept full responsibility. If you find errors, please e-mail the authors at j.conrod@dal.ca or tbeechy@schulich.yorku.ca. There are thousands of calculations in this text—it’s a daunting task to bring them to the degree of accuracy we’d like to be famous for. Your help will be greatly appreciated.
Pedagogical Walkthrough
Introduction
Each chapter has an introduction that explains the objectives of the chapter in narrative form.
Concept Review
Throughout each chapter, there are periodic questions. Students can stop and think through the answers to these basic questions, covering the previously explained material. This helps comprehension and focus! Answers to these questions can be found on the Online Learning Centre.
Charts and Tables
Where appropriate, chapter material is summarized in charts and tables to establish the patterns and help reinforce material.
Pedagogical Use of Colour
Consistently throughout the text, colour has been used to provide emphasis, improve readability, and enhance understanding.
Ethical Issues
Many chapters discuss accounting issues that raise ethical concerns. These concerns are highlighted in the chapter. Where ethics is particularly problematic, we have included a separate “ethical issues” section to help students focus on the ethical aspects of policy choice.
Ethics assignment material has also been incorporated into the case material. Essentially, when an accountant makes a recommendation on a contentious choice of accounting policy, ethics are tested. Students exercise true-to-life ethical judgement when they have to make a tough judgement call and recommend an accounting policy that is “good” for one group but “bad” for another. These ethical overtones are highlighted in the case solutions to help instructors draw them out in discussion and evaluation.
International Perspective
New to the fourth edition, every chapter includes a review of international accounting policies, highlighting similarities and differences between current Canadian practice and the policies recommended by the International Accounting Standards Board.
Relevant Standards
At the end of each chapter, there is a comprehensive list of the Canadian and international standards that are relevant to the material in the chapter. We have not quoted the standards directly in chapter material and we have not provided paragraph references to either the CICA Handbook or to international standards. This omission is intentional—the two sources are harmonized but may use different words. The focus is on the application of standards, not the technicalities.
Summary of Key Points
A summary of key points concludes each chapter. This provides a list of the key ideas and reinforces the chapter material.
Key Terms and the Glossary
Every chapter concludes with a list of key terms used in the chapter. These terms are explained in the chapter, and are also defined in the glossary, which is available on the Online Learning Centre.
Review Problem
There is a review problem with a solution in each chapter beginning in Chapter 3. This provides additional reinforcement of chapter content.
Cases
More than 60 cases are included in Intermediate Accounting, and there is at least one new case in every chapter in the fourth edition. The cases are meant to portray circumstances reflective of real life. Students have to put themselves into the situation and grapple with the facts to arrive at appropriate accounting policies for the circumstances. A blend of professional judgement and technical skills is needed to respond to a case. Case coverage is not limited to “one chapter” bites, but often integrates material learned to date. For those trying to build a base of professionalism, the use of cases consistently over the term is highly recommended. Cases can be assigned for class debriefing, class presentations, or written assignments.
Assignment Material
There is an extensive range of assignment material at the end of each chapter. The assignments give students the opportunity to learn by doing.
Stars accompanying each assignment indicate length, with one star being the shortest assignment and three stars being the longest assignment.
Helping students practice on their own, we have selected a few assignments from each chapter and put their solutions on the Online Learning Centre. These selected assignments are highlighted by an icon in the margin.
Excel® templates for selected assignments provide an introduction to basic spreadsheet applications. These assignments are identified with an icon in the margin and are available on the Online Learning Centre.
Integrative Problems
From time to time, there are integrative problems that formally deal with accounting topics covered in five or six chapters. These problems are a great pre-test review!
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2008 McGraw-Hill Higher Education